Financial Performance - Total revenues for Q1 2025 were $27.5 million, a decrease of 14% compared to $32.1 million in Q1 2024[4]. - Adjusted EBITDA for Q1 2025 was $2.8 million, reflecting a significant increase in adjusted EBITDA margin to 10%, up 600 basis points from 4% in the prior year[4][7]. - The company reaffirmed its full-year 2025 guidance, projecting total revenues between $94 million and $100 million and adjusted EBITDA between $10 million and $12 million[5][15]. - Subscription revenue for Q1 2025 was $25.2 million, down 15% year-over-year, primarily due to the impact of divestitures[9]. - Annual Recurring Revenue (ARR) as of March 31, 2025, was $87.7 million, a decline of 20% compared to $109.6 million in the previous year[12]. - Operating loss for the first quarter of 2025 was $13,762,000, compared to an operating loss of $11,444,000 in the first quarter of 2024[30]. - Net loss for the three months ended March 31, 2025, was $4,250,000, a significant decrease from net income of $50,599,000 in the same period of 2024[30]. - EBITDA for Q1 2025 was $6,956,000, significantly lower than $64,804,000 in Q1 2024[43]. - The company reported a net loss of $4,250,000 in Q1 2025, compared to a net income of $50,599,000 in Q1 2024[43]. Cash Flow and Assets - Cash and cash equivalents increased to $41,730,000 as of March 31, 2025, up from $28,814,000 at the end of 2024[32]. - Total current assets rose to $65,453,000 from $57,187,000, reflecting a growth of 14.1%[32]. - Total liabilities decreased to $198,269,000 from $228,366,000, indicating a reduction of 13.2%[32]. - The company reported a net cash provided by operating activities of $3,286,000 for the first quarter of 2025, compared to $2,741,000 in the same period of 2024[34]. - Cash proceeds from the sale of businesses amounted to $40,269,000 in the first quarter of 2025, down from $90,884,000 in the prior year[34]. - The company’s accumulated deficit increased to $811,149,000 as of March 31, 2025, compared to $806,899,000 at the end of 2024[32]. Strategic Initiatives - The company completed the sale of Oxford Analytica and Dragonfly Intelligence for $40 million on March 31, 2025, and announced an agreement to divest TimeBase for $6.5 million[8]. - The company launched the new AI-focused PolicyNote platform in January 2025, aimed at enhancing customer engagement and retention[8]. - The Board of Directors is reviewing all strategic options to maximize shareholder value[1][17]. Revenue Metrics - Over 90% of the company's revenues are subscription-based, indicating high revenue predictability[48]. - Net Revenue Retention (NRR) measures the success in retaining and growing recurring revenue from existing customers, calculated at the parent account level[49]. - The company uses Annual Recurring Revenue (ARR) as a measure of revenue trend, which is not adjusted for future customer cancellations or changes[48]. - Adjusted Gross Profit for Q1 2025 was $24,059,000, with an Adjusted Gross Profit Margin of 87%, compared to $27,296,000 and 85% in Q1 2024[42]. - Adjusted EBITDA for Q1 2025 was $2,781,000, representing an Adjusted EBITDA Margin of 10.1%, up from 3.8% in Q1 2024[43]. - Adjusted Gross Profit and Adjusted Gross Profit Margin are used to evaluate core operating performance, eliminating non-cash effects of amortization[37]. - EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are key measures for evaluating business performance and making strategic decisions[40].

Financial Performance - Total revenues for the years ended December 31, 2024 and 2023 were $120.3 million and $132.6 million, respectively, reflecting a year-over-year decline primarily due to the divestiture of Board.org in March 2024[22]. - As of December 31, 2024, the company's annual recurring revenue (ARR) was $107.5 million, with an adjusted ARR of $93.3 million after excluding discontinued products and divested businesses[43]. - The net retention revenue (NRR) for subscription customers was approximately 98% for Q4 2024, indicating strong customer retention[46]. - The company incurred net losses of $62.5 million in 2024 and $115.5 million in 2023, highlighting ongoing challenges in achieving profitability[66]. - Approximately 90% of the company's revenues are subscription-based, making high renewal rates critical for financial stability[67]. - A significant portion of revenue is derived from government contracts, which are subject to unpredictable demand and budgetary cycles[106]. Customer Base and Market Presence - The company serves a diverse customer base, including 40 of the Fortune 100, across more than 40 countries, providing stability and growth opportunities[22][36]. - The company serves a diverse customer base, including 40 of the Fortune 100, indicating a strong market presence[42]. - For the years ended December 31, 2024 and 2023, approximately 21% and 19% of revenues were derived from outside the United States, indicating a growing international presence[85]. Product Development and Innovation - The launch of the new core product, PolicyNote, is expected in January 2025, aimed at improving customer experience and retention through enhanced AI features[29]. - Investments in research and development focus on consolidating product portfolios and enhancing data integration capabilities, with a strong emphasis on AI-driven technology[31][33]. - The company is focused on innovation, having launched new products like PolicyNote and plans to continue enhancing its technology platform[55]. - The company leverages AI-driven analytical solutions to provide clients with insights on legal and regulatory developments, enhancing its service offerings[48]. Competition and Market Risks - The company faces competition from traditional information services and emerging startups, necessitating continuous improvement and innovation in its product offerings[50]. - The introduction of competitors' offerings and fluctuations in customer satisfaction could lead to declines in subscriptions, impacting future revenues[69]. - The company faces intense competition for skilled personnel, particularly in AI and data science, which could hinder its ability to innovate and maintain customer relationships[111]. - The company faces risks associated with international operations, including compliance with foreign laws and potential economic instability in those regions[84]. Operational Challenges - The company has implemented a cost reduction plan in 2023 to align operations and reduce future operating expenses[66]. - The sales cycles for the company's products and services are lengthy and unpredictable, requiring significant time and resources without guaranteed revenue[88]. - The company acknowledges the difficulty in accurately estimating the size of its total addressable market, which could limit future growth rates[89]. - The company must navigate challenges in selling to government entities, including competitive bidding processes and compliance with stringent regulations[105]. Intellectual Property and Compliance - The company owns 47 registered trademarks, 14 patents, and has 373 domain names, indicating a strong intellectual property portfolio[53]. - The company may not be able to adequately protect its intellectual property rights, which could harm its business and financial condition[136]. - The company must comply with various lobbying laws, which could result in penalties if not adhered to[108]. - The company is subject to various legal and regulatory risks that could adversely impact its financial condition and operating results[121]. Financial Management and Capital Structure - As of December 31, 2024, the company had $168.2 million in total indebtedness, with $88.6 million under a senior term loan secured by substantially all assets and $79.6 million unsecured[122]. - The company plans to retire $27.1 million of term loans under the senior term loan in connection with the sale of Oxford Analytica and Dragonfly[123]. - The company incurs increased costs due to public company compliance requirements, which may affect profitability[193]. - The company may need to hire additional accounting staff or engage outside consultants, increasing operating expenses[194]. Cybersecurity and Risk Management - The company has a cybersecurity risk management program led by a Vice President with over 15 years of experience in the field[204]. - The company has faced cybersecurity threats, including malware and computer virus attacks, but these have not materially affected its business strategy or financial condition[208]. - The company's Board has delegated responsibility for oversight of the Enterprise Risk Management program and cybersecurity risk to the Audit Committee[207]. - Cybersecurity threats are constantly evolving, and the company may be vulnerable to data breaches that could harm its reputation and financial condition[170].

Core Viewpoint - FiscalNote Holdings, Inc. (NOTE) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Business Outlook - The upgrade in rating for FiscalNote Holdings indicates an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for FiscalNote Holdings has increased by 20% over the past three months, reflecting analysts' growing confidence in the company's earnings potential [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - FiscalNote Holdings' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $29.5 million, lower than the prior year period primarily due to the divestiture of Board.org [37] - Annual recurring revenue (ARR) was $107 million in Q4 2024, down from $109 million in 2023 on a pro forma basis [38] - Adjusted EBITDA for 2024 was $9.8 million, a year-over-year improvement of more than $17 million and 1,400 basis points [12][46] - GAAP net loss for Q4 2024 was $13.4 million, significantly lower than the prior year period due to a large non-cash goodwill impairment charge recorded in Q4 2023 [42] - Cash flow from operations improved by more than $30 million in 2024, reaching negative $5.3 million [48] Business Line Data and Key Metrics Changes - Subscription revenue remained flat on a sequential basis, indicating stability in core business operations [37] - Net revenue retention was 98% in Q4 2024, down from 99% in the prior year, reflecting a focus on improving this metric through product innovation [38] Market Data and Key Metrics Changes - The corporate sector saw a significant increase in multiyear contracts, with new logo ARR on multiyear contracts nearly double compared to the previous year [27] - The company anticipates that the launch of the Policy Note platform will positively impact ARR growth in the second half of 2025, contributing to revenue growth in 2026 [38][53] Company Strategy and Development Direction - The company is focused on three pillars: expanding adjusted EBITDA margin, managing debt, and building a foundation for long-term sustainable growth [11] - The divestiture of non-core businesses is part of a strategy to streamline operations and focus on profitable growth areas [16][33] - The launch of the Policy Note platform is expected to enhance customer engagement and retention, driving future revenue growth [24][28] Management Comments on Operating Environment and Future Outlook - Management acknowledged that the typical end-of-year ARR uptick did not materialize at the end of 2024, prompting key management changes to improve execution [21] - The company is monitoring market volatility, particularly in the private sector, which may impact corporate buying decisions [29][53] - Despite potential challenges, management remains confident in the company's long-term growth strategy and the value proposition of its platforms [30][32] Other Important Information - The company reduced its senior debt by more than 60% in the past year, with a commitment to improving its capital structure [16][47] - The forecast for 2025 includes total revenues in the range of $94 million to $100 million and adjusted EBITDA of $10 million to $12 million [54] Q&A Session Summary Question: Adoption and feedback on the new Policy Note platform - Management is not disclosing specific customer adoption numbers but reports high engagement levels and positive feedback on AI features [60][64] Question: Target leverage ratio post-asset sale - The company aims to bring leverage down to a more conventional model, targeting a range of two to three times leverage over the foreseeable future [68] Question: Balance sheet profile after divestments - The anticipated reduction in senior debt will lower cash interest expense to around $2 million per quarter, contributing to long-term financial health [72] Question: Pro forma expectations for upcoming guidance - The Q1 guidance reflects GAAP revenue, with approximately $3 million of revenue from divested businesses not included in subsequent quarters [76]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $29.5 million, lower than the prior year period primarily due to the divestiture of Board.org [37] - Annual recurring revenue (ARR) was $107 million in Q4 2024, down from $109 million in 2023 on a pro forma basis [38] - Adjusted EBITDA for 2024 was $9.8 million, a year-over-year improvement of more than $17 million and 1,400 basis points [12][46] - GAAP net loss for Q4 2024 was $13.4 million, significantly lower than the prior year period due to a large non-cash goodwill impairment charge recorded in Q4 2023 [42] Business Line Data and Key Metrics Changes - Subscription revenue remained flat on a sequential basis, indicating stability in core business operations [37] - Net revenue retention was 98% in Q4 2024, down from 99% in the prior year, reflecting a focus on improving this metric through product innovation [38] Market Data and Key Metrics Changes - The company has a diverse base of over 4,000 customers across various industries, indicating a broad market presence [32] - The share of new logo ARR on multiyear contracts in the corporate sector is almost double compared to a year ago, demonstrating increased market confidence [27] Company Strategy and Development Direction - The company is focused on three pillars: expanding adjusted EBITDA margin, managing debt, and building a foundation for long-term sustainable growth [11] - The launch of the Policy Note platform is expected to drive customer engagement and retention, with a focus on product-led sales and growth [23][24] - The company plans to simplify its product portfolio and reduce organizational complexity to enhance operational efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the typical end-of-year ARR uptick did not materialize at the end of 2024, prompting key management changes to improve execution [21] - The company anticipates a return to ARR growth in the second half of 2025, which should support GAAP revenue growth in 2026 and beyond [22] - Management is monitoring market volatility, particularly in the private sector, and does not expect significant negative impacts from changes in federal government spending [29][30] Other Important Information - Cash flow from operations improved significantly by more than $30 million in 2024, indicating progress towards positive operating cash flow [48] - The company reduced its senior debt by more than 60% over the past year, demonstrating a commitment to improving its capital structure [16][47] Q&A Session Summary Question: Adoption and feedback on the new Policy Note platform - Management is not disclosing specific customer adoption numbers but reports high engagement levels and positive feedback on AI features [60][64] Question: Target leverage ratio post-asset sale - The company aims to bring leverage down to a more conventional range of two to three times relative to EBITDA over the next few years [68] Question: Balance sheet profile after divestments - The anticipated reduction in senior debt will lower cash interest expense to around $2 million per quarter, contributing to long-term financial health [72] Question: Pro forma expectations for upcoming guidance - The Q1 guidance reflects GAAP revenue, with approximately $3 million of revenue from divested businesses not included in subsequent quarters [76]

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]

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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]