Group 1: Financial Performance - FiscalNote Holdings, Inc. reported a quarterly loss of $0.10 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.23 per share a year ago [1] - The company posted revenues of $29.47 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.57%, but down from $34.27 million year-over-year [2] - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $29.34 million, and for the current fiscal year, it is -$0.38 on revenues of $123.79 million [7] Group 2: Market Performance - FiscalNote Holdings, Inc. shares have lost about 2.8% since the beginning of the year, while the S&P 500 has declined by 4.8% [3] - The company has outperformed the market so far this year, raising questions about its future stock performance [4] Group 3: Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - The estimate revisions trend for FiscalNote Holdings, Inc. is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 4: Industry Context - The Technology Services industry, to which FiscalNote Holdings, Inc. belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [8]

Financial Performance - FiscalNote reported total revenues of $29.5 million for Q4 2024, a decrease of 14% from $34.3 million in Q4 2023[4] - Adjusted EBITDA for Q4 2024 was $3.3 million, representing a 10% year-over-year improvement and marking the sixth consecutive quarter of profitability[4] - The company achieved its first full year of positive adjusted EBITDA in 2024, with an improvement of over $17 million year-over-year[4] - Annual Recurring Revenue (ARR) declined to $107.0 million, a decrease of 15% compared to $126.0 million in 2023, primarily due to divestitures[12] - FiscalNote's gross margin improved to 82% in Q4 2024, up from 67% in Q4 2023, reflecting a 1500 basis points increase[7] - The company expects total revenues for FY 2025 to be between $94 million and $100 million, with adjusted EBITDA projected between $10 million and $12 million[18] - Total revenues for Q4 2024 were $29.469 million, a decrease of 14% compared to $34.265 million in Q4 2023[33] - Subscription revenues decreased to $27.058 million in Q4 2024 from $31.096 million in Q4 2023, representing a decline of 13%[33] - Net loss for Q4 2024 was $13.383 million, compared to a net loss of $50.748 million in Q4 2023, indicating a reduction in losses[33] - The company reported a total comprehensive loss of $14.744 million for Q4 2024, compared to a loss of $49.548 million in Q4 2023[33] - Basic and diluted loss per share for Q4 2024 was $0.10, an improvement from a loss of $0.39 per share in Q4 2023[33] - Net income for the year ended December 31, 2024, was $9,517,000, a significant improvement from a net loss of $115,461,000 in 2023[37] - Adjusted Gross Profit for the twelve months ended December 31, 2024, was $103,330,000, compared to $108,255,000 in 2023, reflecting a decrease of 4.5%[45] - Adjusted Gross Profit Margin improved to 86% for the year ended December 31, 2024, up from 82% in 2023[45] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $9,781 thousand, a significant improvement from an adjusted EBITDA of $(7,506) thousand in 2023[46] - The Adjusted EBITDA Margin increased to 8% for the twelve months ended December 31, 2024, compared to a margin of (6)% in 2023[46] Operating Expenses and Efficiency - Operating expenses decreased by 53% year-over-year to $35.2 million in Q4 2024, primarily due to divestitures and efficiency measures[14] - The company’s total operating expenses for Q4 2024 were $35.199 million, down from $74.194 million in Q4 2023[33] - Research and development expenses decreased to $2.893 million in Q4 2024 from $4.016 million in Q4 2023, a reduction of 28%[33] Strategic Initiatives - The new AI-focused PolicyNote platform was launched in January 2025, aimed at enhancing customer engagement and retention[10] - The company plans to continue streamlining operations and reducing debt service costs to accelerate its path to positive free cash flow[21] - FiscalNote is currently reviewing strategic options to maximize value, with no set timetable for completion[22] - The company continues to focus on organic growth through its core Policy business and aims to enhance its existing platforms and services[29] - The company is actively pursuing market expansion and strategic acquisitions to enhance its operational performance and revenue growth[49] Assets and Liabilities - Total current assets increased to $57,187,000 from $49,805,000, a growth of 14.5% year-over-year[35] - Total liabilities decreased to $228,366,000 from $327,102,000, a reduction of 30.2% year-over-year[35] - Cash and cash equivalents at the end of the period increased to $29,454,000 from $17,300,000, representing a growth of 70.1%[37] - Long-term debt, net of current maturities, decreased to $131,172,000 from $222,310,000, a decline of 41.0%[35] - Total assets decreased to $326,197,000 from $370,561,000, a reduction of 12.0% year-over-year[35] Gains and Losses - The company reported a gain on the sale of businesses amounting to $72,017,000 in 2024[37] - The company incurred $72,017 thousand in gains from the sale of businesses during the twelve months ended December 31, 2024[46] - Costs related to acquisitions and disposals amounted to $1,599 thousand for the twelve months ended December 31, 2024[46] - The company reported a non-cash loss contingency charge of $3,474 thousand related to a settlement recorded in the second quarter of 2023[53] Revenue Predictability - Approximately 90% of the company's revenues are subscription-based, indicating high revenue predictability and stability[50] - The company calculates its Annual Recurring Revenue (ARR) based on contracted subscription revenue, which serves as a leading indicator of future revenue opportunities[50] - Net Revenue Retention (NRR) is used to measure the success in retaining and growing recurring revenue, with calculations excluding new clients for the first 12 months post-acquisition[51]

Analyst and Seeking Alpha Disclosures - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [1] - The article expresses the analyst's own opinions and is not receiving compensation other than from Seeking Alpha [1] - The analyst has no business relationship with any company whose stock is mentioned in the article [1] - Seeking Alpha's disclosure states that past performance is no guarantee of future results and no investment recommendations are being given [2] - Seeking Alpha is not a licensed securities dealer, broker, or US investment adviser or investment bank [2] - Seeking Alpha's analysts are third-party authors who may not be licensed or certified by any institute or regulatory body [2]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $29.4 million, in line with forecasts but lower than the prior year due to the divestiture of Board.org [32] - Subscription revenue accounted for 93% of total revenue this quarter, consistent with historical trends [33] - As of Q3 2024, run rate revenue was $119 million and annual recurring revenue (ARR) was $109 million [33] - Net revenue retention was 99%, slightly lower than the prior year [34] - Adjusted EBITDA for Q3 2024 was positive $3.4 million, marking five consecutive quarters of positive adjusted EBITDA [37] - Full year 2024 adjusted EBITDA forecast was raised to approximately $9 million, while total revenue forecast was slightly lowered to $120 million [39] Business Line Data and Key Metrics Changes - The company has divested noncore businesses, including Board.org and Aicel, to focus on profitable growth [20][21] - Operating expenses in Q3 2024 decreased by over $11 million or 24% compared to the prior year [35] - Gross margins improved to 79% on a GAAP basis and 86% on an adjusted basis, reflecting improved efficiencies [36] Market Data and Key Metrics Changes - The company is experiencing demand for its global policy data and EU policy analysis, particularly in international markets [27][66] - Government performance in Q3 was strong, contributing positively to the overall business [58] Company Strategy and Development Direction - The company aims to leverage AI technologies in new products and improve customer experiences [22][25] - Focus on product-led growth and enhancing core offerings to drive retention and upsell opportunities [26][56] - Continued evaluation of portfolio rationalization to eliminate noncore initiatives and improve capital structure [29][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth, emphasizing the importance of new leadership and strategic focus [13][64] - The leadership transition is seen as timely, with a strong foundation for growth established through recent profitability and product launches [64] - Management highlighted the need for improved customer engagement and retention as key drivers for future success [66] Other Important Information - The company has a total debt outstanding of $168 million, reflecting a decrease from the previous quarter [38] - The Board is reviewing strategic alternatives to maximize shareholder value [41] Q&A Session Summary Question: What is the target capital structure over the medium term? - Management is evaluating the right capital structure and aims to reduce overall debt while servicing it with future cash flow [44][45] Question: Can you elaborate on customer reception of the new AI technologies? - Customer uptake of the new Copilot products has been strong, with positive metrics indicating good engagement and potential for upsell [47][48] Question: Is the gross margin level sustainable? - Management believes the improved gross margins are sustainable due to the divestiture of lower-margin businesses and a focus on core subscription services [54] Question: How did the government perform in Q3? - Government performance was strong, contributing positively to the company's overall results [58] Question: What percent of revenue could be in the noncore category? - Management refrained from providing specific guidance but indicated that a substantial portion of revenue is from core businesses [59]

Core Viewpoint - FiscalNote Holdings, Inc. reported a quarterly loss of $0.11 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.10, indicating a 10% earnings surprise [1] - The company generated revenues of $29.44 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.47%, but down from $34.01 million a year ago [2] Financial Performance - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - FiscalNote Holdings, Inc. shares have declined approximately 18% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] Future Outlook - The company's earnings outlook will be crucial for stock performance, with current consensus EPS estimates at -$0.11 for the coming quarter and $0.07 for the current fiscal year on revenues of $30.63 million and $121.02 million, respectively [7] - The estimate revisions trend for FiscalNote Holdings, Inc. is mixed, resulting in a Zacks Rank 3 (Hold), suggesting shares are expected to perform in line with the market in the near future [6] Industry Context - The Technology Services industry, to which FiscalNote belongs, is currently in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Skillsoft Corp., is expected to report a quarterly loss of $3.01 per share, with revenues projected to be $129.76 million, down 6.6% from the previous year [9]

Financial Performance - Total revenues for the three months ended September 2024 were $29,439,000, a decrease of 13.5% compared to $34,009,000 for the same period in 2023[8] - Subscription revenues decreased to $27,238,000 from $30,057,000, reflecting a decline of 9.3% year-over-year[8] - Operating loss for the three months ended September 2024 was $(6,811,000), an improvement from $(13,461,000) in the same quarter of 2023[8] - Net loss for the three months ended September 2024 was $(14,935,000), compared to $(14,467,000) for the same period in 2023[8] - The company reported a comprehensive loss of $(13,812,000) for the three months ended September 2024, compared to $(15,473,000) in the same quarter of 2023[8] - The company reported a net loss of $14.9 million for Q3 2024, an increase in loss of $468,000 or 3.2% compared to a net loss of $14.4 million in Q3 2023[201] Expenses - Research and development expenses for the three months ended September 2024 were $3,250,000, down from $4,540,000, a decrease of 28.3%[8] - General and administrative expenses decreased to $10,622,000 from $14,418,000, a reduction of 26.4% year-over-year[8] - Interest expense for the three months ended September 2024 was $5,585,000, down from $8,018,000, a decrease of 30.1%[8] - Total operating expenses for Q3 2024 were $36.3 million, a decrease of $11.2 million or 23.5% from $47.5 million in Q3 2023[201] Equity and Stock - As of September 30, 2023, total stockholders' equity stands at $83,569,000, a decrease from $140,434,000 at March 31, 2023[10] - The weighted average shares used in computing earnings per share increased to 135,050,093 from 128,832,502 year-over-year[8] - The balance of common stock shares decreased to 128,895,749 as of September 30, 2023, from 133,866,990 at March 31, 2023[10] - The Company has authorized the issuance of 1,809,000,000 shares, including Class A common stock, Class B common stock, and preferred stock[98] - As of September 30, 2024, the Company had 132,584,083 shares of Class A common stock issued and outstanding[99] Cash and Debt - Cash, cash equivalents, and restricted cash totaled $26.4 million at the end of the period, up from $17.3 million at the end of September 2023[11] - The company had a negative working capital balance of $45.8 million (excluding cash and short-term investments) as of September 30, 2024[16] - As of September 30, 2024, the total gross debt of the company is $155,886, down from $225,513 as of December 31, 2023, indicating a reduction of approximately 30.8%[64] - The company incurred cash interest of $11,165 for the nine months ended September 30, 2024, compared to $15,341 for the same period in 2023, reflecting a decrease of approximately 27.5%[71] Revenue Sources - Revenue from the U.S. Federal Government accounted for 17% of total revenue for the nine months ended September 30, 2024, up from 15% in the same period of 2023[27] - Approximately 90% of total revenues were subscription-based for the nine months ended September 30, 2024[183] - Annual Recurring Revenue (ARR) as of September 30, 2024, was $109.5 million, down from $126.1 million at December 31, 2023[173] - Run-Rate Revenue at September 30, 2024, was approximately $119.4 million, compared to $139.7 million at December 31, 2023[174] - Net Revenue Retention (NRR) was 99% for the three months ended September 30, 2024, down from 100% in the same period of 2023[175] Acquisitions and Sales - The Company completed the sale of Board.org for a total value of up to $103 million, recording a gain on sale of business of $71.6 million during the three months ended March 31, 2024[162] - The acquisition of Dragonfly Eye Limited was completed for a total consideration of $25.236 million, including $5.6 million in cash, 1,885,149 shares of Class A Common Stock, and $11.1 million in subordinated convertible promissory notes[47][48] - The company raised approximately $18.1 million in net cash proceeds from the sale of Board.org, which was retained for operating matters[16] Future Outlook - The company anticipates continued focus on organic growth and market expansion strategies moving forward[5] - The company expects significant ongoing operating and capital expenditures to continue implementing its business plan, including entering new markets and product development[16] - The company is assessing opportunities to acquire complementary businesses to expand its market presence[169] - The company has observed slower client decision-making and softer renewal rates, impacting ARR growth and expected revenue for the coming fiscal year[168] Stock-Based Compensation - Stock-based compensation expense for the quarter ending June 30, 2024, amounted to $4,181,000[10] - The company recognized stock-based compensation expenses of $3,853 and $5,709 for the three months ended September 30, 2024 and 2023, respectively, and $13,092 and $15,772 for the nine months ended September 30, 2024 and 2023, respectively[119] - The company recognized $17,712 of share-based compensation expense for vested Earnout Awards upon closing, with additional expenses of $106 and $278 for the three and nine months ended September 30, 2024, respectively[107] Impairments and Losses - The company incurred an impairment charge of $5.837 million for goodwill in its ESG reporting unit during the first quarter of 2023[62] - The company recognized an impairment of goodwill during the three months ended March 31, 2023, with no additional impairments identified for the periods ended September 30, 2024 and 2023[146]

Financial Performance - Q3 2024 total revenues reached $29.4 million, with adjusted EBITDA of $3.4 million, both exceeding previous forecasts[1] - Adjusted EBITDA for the full year 2024 is raised to approximately $9 million, up from $8 million, while total revenues are revised to approximately $120 million, down from $121 million[1] - Total revenues for Q3 2024 were $29.439 million, a decrease of 13.5% compared to $34.009 million in Q3 2023[22] - Operating loss for Q3 2024 was $6.811 million, an improvement from a loss of $13.461 million in Q3 2023[22] - Net loss for Q3 2024 was $14.935 million, compared to a net loss of $14.467 million in Q3 2023[22] - The company reported a net income of $22,900,000 for the nine months ended September 30, 2024, compared to a net loss of $64,713,000 for the same period in 2023[25] Revenue Breakdown - Subscription revenue for Q3 2024 was $27.2 million, a decline of $2.8 million or 9% year-over-year, primarily due to the impact of the Board.org sale[8] - Subscription revenues amounted to $27.238 million in Q3 2024, down from $30.057 million in Q3 2023, reflecting a decline of 9.3%[22] - Approximately 90% of the company's revenues are subscription-based, contributing to high revenue predictability[36] Operating Expenses and Efficiency - Operating expenses decreased by 24% year-over-year to $36.3 million, driven by the sale of Board.org and ongoing efficiency measures[12] - Total operating expenses decreased to $36.250 million in Q3 2024 from $47.470 million in Q3 2023, a reduction of 23.5%[22] - Research and development expenses were $3.250 million in Q3 2024, down from $4.540 million in Q3 2023, a decrease of 28.3%[22] - General and administrative expenses decreased to $10.622 million in Q3 2024 from $14.418 million in Q3 2023, a decline of 26.5%[22] Strategic Initiatives - The recent divestiture of Aicel Technologies for $9.65 million is part of the strategy to reduce business complexity and improve operating efficiency[5] - Era Global Technologies is investing $5.5 million in FiscalNote through a convertible subordinated promissory note, supporting the company's AI initiatives[15] - The company has appointed Can Babaoglu as Chief Product Officer to enhance product strategy and drive profitable growth[5] Cash Flow and Balance Sheet - Cash and cash equivalents increased to $25,688,000 from $16,451,000, marking a growth of approximately 56.5%[24] - Total liabilities decreased significantly from $327,102,000 to $239,432,000, a reduction of about 26.8%[24] - Long-term debt decreased from $222,310,000 to $142,152,000, a reduction of approximately 36.1%[24] - The total stockholders' equity increased to $98,517,000 from $43,459,000, representing a growth of approximately 126.5%[24] Performance Metrics - Adjusted Gross Profit and Adjusted Gross Profit Margin metrics are utilized to evaluate core operating performance, excluding non-cash effects of amortization[27][28] - Adjusted Gross Profit for the three months ended September 30, 2024, was $25,428,000, compared to $28,364,000 in 2023, reflecting a decrease of about 10.5%[33] - Adjusted Gross Profit Margin improved to 86% for the three months ended September 30, 2024, up from 83% in 2023[33] - Adjusted EBITDA for the three months ended September 30, 2024, was $3,444,000, up from $736,000 in 2023, marking an increase of approximately 369.4%[34] - Adjusted EBITDA Margin for the three months ended September 30, 2024, was 11.7%, significantly higher than 2.2% in 2023[34] Customer Retention and Growth - The company monitors Net Revenue Retention (NRR) to assess success in retaining and growing recurring revenue from existing customers[38] - Run-Rate Revenue, defined as ARR plus non-subscription revenue, is used to gauge total revenue growth[37] - The company emphasizes the importance of retaining existing subscription customers as a key performance indicator for future revenue opportunities[36]

FiscalNote Holdings, Inc. (NYSE:NOTE) Q2 2024 Earnings Conference Call August 8, 2024 5:00 PM ET Company Participants Bob Burrows – Western Avenue Advisers LLC Tim Hwang – Chairman, Chief Executive Officer and Co-Founder Jon Slabaugh – Chief Financial Officer and Chief Investment Officer Josh Resnik – President and Chief Operating Officer Conference Call Participants Ethan Widell – B. Riley Securities Operator Good afternoon, ladies and gentlemen, and welcome to the FiscalNote Second Quarter 2024 Financial ...

FiscalNote, Inc. – Corporate Overview August 8, 2024 置 Fiscal Note © 2024 FiscalNote fiscalnote.com Disclaimer Forward Looking Statements Certain statements herein may be considered forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or FiscalNote's future financial or operating performance. Statements regarding FiscalNote's financial outlook for future periods, expectations regarding profitability, capital resources and ...

FiscalNote Holdings, Inc. (NOTE) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 30.77%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.12, delivering a surprise of 29.41%. Over the last four quarters, the company ...