FiscalNote(NOTE) - 2025 Q1 - Quarterly Results

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].