FiscalNote(US:NOTE)2023-03-28 20:44Financial Data and Key Metrics Changes - Fourth quarter revenue was $31.4 million, marking a growth of 29% year-over-year and 18% organic growth. Full year 2022 revenue was $113.8 million, reflecting a 37% year-over-year increase and 15% organic growth [5][36] - Non-GAAP revenue for the year was $115.7 million, demonstrating the effectiveness of the company's growth strategy [5] - Adjusted gross margins are expected to be approximately 80% for the full year, with adjusted EBITDA loss projected between $8 million and $6 million [7][9] Business Line Data and Key Metrics Changes - Subscription revenue for Q4 was $27.3 million, an increase of 31% year-over-year, while full year subscription revenue exceeded $100 million, marking a 36% increase [45] - Advisory and other revenue for Q4 was $4.1 million, with a full year total of $13.2 million, reflecting a growth of 49% year-over-year [45] Market Data and Key Metrics Changes - The company has a significant focus on the European market, which currently contributes only 10% of total revenue, indicating substantial growth potential [56][67] - The total addressable market (TAM) is estimated at $37 billion, highlighting the expansive opportunities available in the legal, regulatory, and policy information sector [55] Company Strategy and Development Direction - The company aims to leverage AI technologies to enhance operational efficiency and customer experiences, which is expected to drive future growth [2][41] - The management team emphasizes sustainable profitable growth and smart capital allocation, focusing on building an enduring company [4][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, citing strong fundamentals and a commitment to navigating the complexities of the regulatory environment [3][39] - The company anticipates continued mid-teens organic growth, driven by strong customer relationships and recurring revenue [36][63] Other Important Information - The company ended 2022 with a cash balance of $61.2 million, which supports planned growth and a path to adjusted EBITDA profitability [9][90] - The company has no plans to raise additional equity capital, indicating a strong financial position [9] Q&A Session Questions and Answers Question: What are the expectations for growth in the European market? - The company is focusing on expanding its presence in the European market, which is seen as a significant growth opportunity, with recent acquisitions enhancing its footprint [67][68] Question: How is the partnership with OpenAI expected to impact product development? - The partnership is aimed at enhancing customer experiences and operational efficiencies, with expectations for improved data collection and faster product innovations [69][70] Question: What is the outlook for M&A activity in light of recent market conditions? - The company is actively evaluating M&A opportunities, noting a shift in valuation expectations, but remains focused on finding the right targets that align with its growth strategy [71][72]