FiscalNote Reports Fourth Quarter and Full Year 2024 Financial Results
FiscalNote Holdings (NYSE: NOTE) reported strong Q4 2024 financial results, exceeding revenue and adjusted EBITDA forecasts. The company achieved $29.5 million in total revenues and $3.3 million in adjusted EBITDA for Q4 2024, marking its sixth consecutive quarter of adjusted EBITDA profitability.
Key highlights include the company's first full calendar year of positive adjusted EBITDA, with a 1400 basis points year-over-year margin improvement. The company maintains a stable base of over 4,000 customers with durable recurring revenue. FiscalNote recently announced a non-core divestiture expected to close by month-end, which should drive operational efficiencies and increase profitability.
For 2025, FiscalNote expects adjusted EBITDA margins to double on a pro forma basis and accelerate its path towards positive free cash flow. The company recently launched its new AI-focused PolicyNote platform and signed a definitive agreement to divest Oxford Analytica and Dragonfly Intelligence for $40.0 million.
FiscalNote Holdings (NYSE: NOTE) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, superando le previsioni di fatturato e EBITDA rettificato. L'azienda ha raggiunto 29,5 milioni di dollari in ricavi totali e 3,3 milioni di dollari in EBITDA rettificato per il quarto trimestre del 2024, segnando il suo sesto trimestre consecutivo di redditività in EBITDA rettificato.
I punti salienti includono il primo anno solare completo dell'azienda con un EBITDA rettificato positivo, con un miglioramento del margine di 1400 punti base rispetto all'anno precedente. L'azienda mantiene una base stabile di oltre 4.000 clienti con ricavi ricorrenti duraturi. FiscalNote ha recentemente annunciato una dismissione non core prevista per la fine del mese, che dovrebbe portare a efficienze operative e aumentare la redditività.
Per il 2025, FiscalNote prevede che i margini EBITDA rettificati raddoppieranno su base pro forma e accelereranno il suo percorso verso un flusso di cassa libero positivo. L'azienda ha recentemente lanciato la sua nuova piattaforma PolicyNote focalizzata sull'IA e ha firmato un accordo definitivo per dismettere Oxford Analytica e Dragonfly Intelligence per 40,0 milioni di dollari.
FiscalNote Holdings (NYSE: NOTE) reportó resultados financieros sólidos para el cuarto trimestre de 2024, superando las previsiones de ingresos y EBITDA ajustado. La compañía alcanzó 29,5 millones de dólares en ingresos totales y 3,3 millones de dólares en EBITDA ajustado para el cuarto trimestre de 2024, marcando su sexto trimestre consecutivo de rentabilidad en EBITDA ajustado.
Los aspectos destacados incluyen el primer año calendario completo de la compañía con EBITDA ajustado positivo, con una mejora de margen de 1400 puntos básicos en comparación con el año anterior. La empresa mantiene una base estable de más de 4,000 clientes con ingresos recurrentes duraderos. FiscalNote anunció recientemente una desinversión no central que se espera que se cierre a fin de mes, lo que debería impulsar eficiencias operativas y aumentar la rentabilidad.
Para 2025, FiscalNote espera que los márgenes de EBITDA ajustado se dupliquen en una base pro forma y aceleren su camino hacia un flujo de caja libre positivo. La empresa lanzó recientemente su nueva plataforma PolicyNote centrada en IA y firmó un acuerdo definitivo para desinvertir Oxford Analytica y Dragonfly Intelligence por 40,0 millones de dólares.
FiscalNote Holdings (NYSE: NOTE)는 2024년 4분기 재무 결과가 양호하여 수익 및 조정 EBITDA 예측을 초과했다고 보고했습니다. 이 회사는 2024년 4분기에 2950만 달러의 총 수익과 330만 달러의 조정 EBITDA를 달성하며 조정 EBITDA 수익성의 여섯 번째 연속 분기를 기록했습니다.
주요 하이라이트는 회사의 첫 번째 전체 회계 연도에서 긍정적인 조정 EBITDA를 기록했으며, 전년 대비 1400 베이시스 포인트의 마진 개선을 이룬 것입니다. 이 회사는 4,000명 이상의 고객으로 구성된 안정적인 기반을 유지하며 지속 가능한 반복 수익을 창출하고 있습니다. FiscalNote는 최근에 운영 효율성을 높이고 수익성을 증가시킬 것으로 예상되는 비핵심 자산 매각을 발표했습니다.
2025년을 위해 FiscalNote는 조정 EBITDA 마진이 프로 포르마 기준으로 두 배로 증가하고 긍정적인 자유 현금 흐름으로 나아가는 경로를 가속화할 것으로 예상하고 있습니다. 이 회사는 최근 AI 중심의 PolicyNote 플랫폼을 출시하고 Oxford Analytica 및 Dragonfly Intelligence를 4000만 달러에 매각하기 위한 최종 계약을 체결했습니다.
FiscalNote Holdings (NYSE: NOTE) a annoncé de solides résultats financiers pour le quatrième trimestre 2024, dépassant les prévisions de revenus et d'EBITDA ajusté. L'entreprise a atteint 29,5 millions de dollars de revenus totaux et 3,3 millions de dollars d'EBITDA ajusté pour le quatrième trimestre 2024, marquant son sixième trimestre consécutif de rentabilité en EBITDA ajusté.
Les points forts incluent la première année complète de l'entreprise avec un EBITDA ajusté positif, avec une amélioration de la marge de 1400 points de base par rapport à l'année précédente. L'entreprise maintient une base stable de plus de 4 000 clients avec des revenus récurrents durables. FiscalNote a récemment annoncé une cession non essentielle prévue pour la fin du mois, ce qui devrait augmenter l'efficacité opérationnelle et la rentabilité.
Pour 2025, FiscalNote s'attend à ce que les marges d'EBITDA ajusté doublent sur une base pro forma et à accélérer son chemin vers un flux de trésorerie libre positif. L'entreprise a récemment lancé sa nouvelle plateforme PolicyNote axée sur l'IA et signé un accord définitif pour céder Oxford Analytica et Dragonfly Intelligence pour 40,0 millions de dollars.
FiscalNote Holdings (NYSE: NOTE) hat starke Finanzzahlen für das vierte Quartal 2024 veröffentlicht und die Umsatz- sowie die angepassten EBITDA-Prognosen übertroffen. Das Unternehmen erzielte 29,5 Millionen Dollar an Gesamterlösen und 3,3 Millionen Dollar an angepasstem EBITDA im vierten Quartal 2024 und verzeichnete damit das sechste aufeinanderfolgende Quartal mit angepasster EBITDA-Rentabilität.
Zu den wichtigsten Highlights gehört das erste volle Kalenderjahr des Unternehmens mit positivem angepasstem EBITDA, das eine Verbesserung der Marge um 1400 Basispunkte im Jahresvergleich aufweist. Das Unternehmen verfügt über eine stabile Basis von über 4.000 Kunden mit nachhaltigen wiederkehrenden Einnahmen. FiscalNote hat kürzlich eine nicht zum Kerngeschäft gehörende Veräußering angekündigt, die bis zum Monatsende abgeschlossen werden soll, was betriebliche Effizienzen steigern und die Rentabilität erhöhen sollte.
Für 2025 erwartet FiscalNote, dass sich die angepassten EBITDA-Margen auf Pro-Forma-Basis verdoppeln und den Weg zu positivem freien Cashflow beschleunigen werden. Das Unternehmen hat kürzlich seine neue KI-fokussierte Plattform PolicyNote gestartet und einen endgültigen Vertrag zur Veräußering von Oxford Analytica und Dragonfly Intelligence für 40,0 Millionen Dollar unterzeichnet.
- First full year of positive Adjusted EBITDA with 1400 basis points margin improvement
- Reduced senior debt by 44% in 2024
- Expected $40M cash injection from Oxford Analytica divestiture
- Six consecutive quarters of adjusted EBITDA profitability
- Projected doubling of Adjusted EBITDA margins in 2025
- Q4 2024 subscription revenue declined 13% year-over-year
- ARR declined 15% to $19 million due to divestitures
- Net Revenue Retention decreased to 98%, down 100 basis points YoY
- Advisory and advertising revenue decreased 24% in Q4 2024
Insights
FiscalNote's Q4/FY 2024 results represent a significant turning point in the company's financial trajectory, marking its first full year of adjusted EBITDA profitability with a substantial 1400 basis point margin improvement year-over-year. The company exceeded both revenue and adjusted EBITDA forecasts, posting
The strategic divestitures of non-core assets are materializing into tangible financial benefits. The company has reduced senior debt by 44% in 2024 and the upcoming
The
The
This earnings report demonstrates FiscalNote is effectively executing its strategy of focusing on profitability and cash flow while setting the foundation for future product-led growth.
The launch of FiscalNote's PolicyNote platform represents a strategic product consolidation that could yield multiple benefits. By leveraging their proprietary policy analysis capabilities and AI technology through a unified interface, FiscalNote is addressing several critical business dimensions simultaneously.
From a technical perspective, the platform consolidation should reduce technical debt and maintenance costs—a common challenge for companies with multiple product offerings. The unified approach allows for more focused R&D investment and faster innovation cycles, particularly important in the rapidly evolving AI space where FiscalNote is positioning itself.
The timing of this platform launch aligns with the broader industry shift toward AI-enhanced policy and regulatory intelligence solutions. By emphasizing their AI capabilities, FiscalNote is differentiating in a competitive market. The engagement with Palantir's former head of federal contracting suggests a strategic push to expand their public sector AI offerings, a potentially lucrative growth vector.
The platform strategy appears designed to improve user engagement metrics and retention rates by offering a more cohesive experience. This could help address the slight decline in Net Revenue Retention (
While the full impact of the PolicyNote platform won't materialize immediately (management indicates benefits will accrue gradually through 2025), the technical foundation appears sound. The gradual migration approach minimizes disruption risks while setting the stage for the company's next growth phase, with management expecting improved organic revenue growth in 2026 as a direct result of this technical consolidation.
Exceeds Both Revenue and Adjusted EBITDA Forecasts for Both Fourth Quarter and Full Year 2024
Achieves First Full Year of Positive Adjusted EBITDA Driven by Margin Improvement of 1400 Basis Points Year-Over-Year
Recently Announced Non-Core Divestiture Expected to Close by Month End, Drives Incremental Operating Efficiencies, Increases Profitability, and Further Deleverages Balance Sheet
FY25 Guidance Reflects a Durable Core Business, Further Efficiency Initiatives and Sunset Product Lines; Expects Adjusted EBITDA Margins to Double on a Pro Forma Basis and Accelerate Path Towards Positive Free Cash Flow
Board of Directors Continues to Review All Strategic Options Available to the Company to Maximize Shareholder Value
Company to Host Conference Call Today at 5:00 p.m. EDT
The Company reported strong results in the quarter with
Josh Resnik, CEO and President of FiscalNote, commented, “With today’s announcement, we are continuing to demonstrate expanding Adjusted EBITDA margins, an accelerating path to positive free cash flow, and a strong foundation for long term, durable growth. In 2024 we reduced our senior debt by
Fourth Quarter 2024 Financial Highlights(2)
Fourth Quarter 2024 performance reflects expanded Adjusted Gross Margin, Adjusted EBITDA margin, and an improved balance sheet position.
Note - All amounts for the three months ended December 31, 2023 include contributions from the Board.org and Aicel businesses, which the Company divested on March 11, 2024 and October 31, 2024, respectively.
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(Unaudited) |
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Three Months Ended December 31, |
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($ in millions) |
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2024 |
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2023 |
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% Change |
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Total Revenues (formerly "GAAP Revenue") |
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$ |
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29.5 |
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$ |
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34.3 |
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(14 |
) |
% |
Subscription Revenue as % of Total Revenues |
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92 |
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% |
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91 |
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% |
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100 |
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bps |
Gross Profit |
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$ |
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24.2 |
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$ |
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22.9 |
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6 |
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% |
Gross Margin |
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82 |
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% |
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67 |
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% |
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|
1500 |
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bps |
Adjusted Gross Profit (1) |
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$ |
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25.7 |
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$ |
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28.3 |
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(9 |
) |
% |
Adjusted Gross Margin (1) |
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87 |
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% |
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83 |
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% |
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400 |
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bps |
Net Loss |
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$ |
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(13.4 |
) |
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$ |
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(50.7 |
) |
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(74 |
) |
% |
Adjusted EBITDA (1) |
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$ |
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3.3 |
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$ |
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3.0 |
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* |
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Adjusted EBITDA Margin (1) |
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11 |
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% |
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9 |
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% |
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|
200 |
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bps |
Cash and Cash Equivalents |
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$ |
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35.3 |
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$ |
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24.4 |
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bps - Basis Points |
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* - percentage change is greater than +/- |
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Fourth Quarter 2024 and Recent Operational Highlights
- Unveiled in January 2025 PolicyNote, the Company’s new AI-focused platform for policy and regulation – leveraging FiscalNote’s breadth and depth of data as well as its proprietary policy analysis and AI technology via a consolidated user interface to drive deeper customer engagement, strengthen customer retention, accelerate future innovation, reduce ongoing maintenance costs, and expand long-term growth opportunities.
-
Signed in February 2025 a definitive agreement to divest Oxford Analytica and Dragonfly Intelligence, two companies within the Company’s global intelligence business, for total consideration of
$40.0 million - Signed in February 2025 a contracting engagement with Palantir’s former head of federal contracting, John Lee, to support the Company in its continuing mission to equip the public sector with cutting-edge AI and data-driven solutions that enhance operational efficiency, responsiveness, and decision-making.
- Executed a successful leadership succession plan to drive the next phase of growth, as Co-Founder Tim Hwang transitioned to Executive Chairman to focus on strategic initiatives and the continuity of FiscalNote’s mission after nearly 12 years as Chief Executive Officer, and Josh Resnik – who has extensive operating experience and has been instrumental in advancing FiscalNote’s product strategy and operational effectiveness – was promoted to Chief Executive Officer, effective January 1, 2025.
-
Completed the divestiture of its
South Korea subsidiary, Aicel Technologies, for a total consideration of$9.6 million
Fourth Quarter 2024 Financial Performance
Revenue(2)
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(Unaudited) |
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Three Months Ended December 31, |
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($ in millions) |
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2024 |
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2023 |
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% Change |
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Subscription revenue |
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$ |
27.1 |
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$ |
31.1 |
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(13 |
) |
% |
Advisory, advertising, and other revenue |
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2.4 |
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3.2 |
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(24 |
) |
% |
Total revenues |
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$ |
29.5 |
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$ |
34.3 |
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|
(14 |
) |
% |
For Q4 2024, subscription revenue declined
For Q4 2024, advisory, advertising, and other revenue decreased
Key Performance Indicators(2)(3)
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|
As of December 31, |
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||||||
($ in millions) |
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2024 |
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2023 |
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% Change |
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Annual Recurring Revenue (ARR) |
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$ |
107.0 |
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$ |
126.0 |
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(15 |
)% |
Pro Forma ARR* |
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$ |
107.0 |
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$ |
109.0 |
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(2 |
)% |
*Pro forma ARR adjusts prior periods for the impact of the divestiture of Board.org and Aicel.
As of December 31, 2024, ARR declined
For the three months ended December 31, 2024, Net Revenue Retention (NRR) was
Operating Expenses(2)
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(Unaudited) |
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Three Months Ended December 31, |
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($ in millions) |
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2024 |
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2023 |
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% Change |
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Cost of revenues, including amortization |
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$ |
5.3 |
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$ |
11.4 |
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(53 |
)% |
Research and development |
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2.9 |
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4.0 |
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(28 |
)% |
Sales and marketing |
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7.6 |
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10.5 |
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(28 |
)% |
Editorial |
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4.8 |
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4.3 |
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10 |
% |
General and administrative |
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12.3 |
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16.7 |
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(27 |
)% |
Amortization of intangible assets |
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2.4 |
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2.9 |
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(18 |
)% |
Goodwill impairment |
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- |
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26.2 |
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* |
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Other |
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- |
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(1.9 |
) |
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* |
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Total operating expenses |
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$ |
35.2 |
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$ |
74.2 |
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(53 |
)% |
* - percentage change is greater than +/- |
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In Q4 2024, operating expenses decreased
Full Year 2024 Financial Highlights
Note - All amounts for the twelve months ended December 31, 2023 include contributions from the Board.org and Aicel businesses, which the Company divested on March 11, 2024 and October 31, 2024, respectively.
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(Unaudited) |
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Year Ended December 31, |
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($ in millions) |
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|
2024 |
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|
2023 |
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% Change |
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|
|||
Total Revenues (formerly "GAAP Revenue") |
|
$ |
|
120.3 |
|
|
|
$ |
|
132.6 |
|
|
|
|
(9 |
) |
% |
Subscription Revenue as % of Total Revenues |
|
|
|
92 |
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% |
|
|
|
90 |
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% |
|
|
200 |
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bps |
Gross Profit |
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$ |
|
94.6 |
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|
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$ |
|
92.4 |
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2 |
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% |
Gross Margin |
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|
79 |
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% |
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|
70 |
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% |
|
|
900 |
|
bps |
Adjusted Gross Profit (1) |
|
$ |
|
103.3 |
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|
|
$ |
|
108.3 |
|
|
|
|
(5 |
) |
% |
Adjusted Gross Margin (1) |
|
|
|
86 |
|
% |
|
|
|
82 |
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% |
|
|
400 |
|
bps |
Net Income (Loss) |
|
$ |
|
9.5 |
|
|
|
$ |
|
(115.5 |
) |
|
|
|
|
* |
|
Adjusted EBITDA (1) |
|
$ |
|
9.8 |
|
|
|
$ |
|
(7.5 |
) |
|
|
|
|
* |
|
Adjusted EBITDA Margin (1) |
|
|
|
8 |
|
% |
|
|
|
(6 |
) |
% |
|
|
|
* |
|
bps - Basis Points |
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* - percentage change is greater than +/- |
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2025 Financial Forecast
The Company provides an initial financial forecast for 2025, incorporating the following considerations:
- incremental cost savings related to ongoing operating discipline initiatives;
- further reduction in debt service costs;
- further sunsetting of non-core products;
- pacing of the migration to PolicyNote and the anticipated sales and customer retention benefits expected to accrue from this new consolidated customer interface;
- current market volatility, in particular in the private sector, where macroeconomic unpredictability is likely to impact corporate buying decisions and timelines over the course of the year; and
- potential impact in the public sector due to changes in the federal government.
This forecast also reflects management’s expectations based on the most recent information available and is subject to adjustment due to changes in business conditions across the year ended December 31, 2025.
Full Year 2025
|
Initial Full Year 2025 Forecast * |
Proforma Full Year 2024 Actual |
($ in millions) |
(As of 3/13/2025) |
(For Comparison Purposes Only) |
Total Revenues |
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Adjusted EBITDA (1) (4) |
|
NA |
1Q 2025
|
Initial Q1 2025 Forecast * |
Proforma 1Q 2024 Actual |
($ in millions) |
(As of 3/13/2025) |
(For Comparison Purposes Only) |
Total Revenues |
|
|
Adjusted EBITDA (1) (4) |
|
NA |
* - Includes the contribution in the first quarter 2025 of approximately
Commenting on the 2025 forecast, Jon Slabaugh, FiscalNote CFO, said, “Our expectations for 2025 reflect the realization of efficiencies resulting from continued operating discipline initiatives, driving substantially expanded Adjusted EBITDA margins – which are expected to more than double on a proforma basis. This streamlining, combined with a further reduction in the Company’s debt service costs, will considerably accelerate the Company’s progress towards positive free cash flow. The Company anticipates its new PolicyNote platform to have an increased benefit to customer engagement and expansion over the course of 2025, as the Company migrates more users to the platform and offers additional enhancements and features. This is expected to result in an increased benefit to ARR in the second half of 2025 and lead to improved organic revenue growth in 2026. Additionally, we will continue to control annual capex while further managing cash interest expense in order to accelerate our path to positive free cash flow.”
Strategic Review
The Company’s Board of Directors along with its advisors continue to review the Company’s ongoing plans and evaluate all strategic value-maximizing options available to the Company. There can be no assurance that the strategic review will result in any transaction or other outcome. The Company has not set a timetable for completion of the review and does not intend to disclose developments or provide updates on the progress or status of the review unless and/or until it deems further disclosure is appropriate or required.
Conference Call and Webcast Information
Company management will host a conference call at 5:00 p.m. EDT today, Thursday, March 13, 2025, to discuss these financial results.
LIVE
- By phone
-
Dial for the
U.S. orCanada 1 (800) 715-9871 or for International 1 (646) 307-1963 and enter the conference ID 7871199. - By webcast
- Visit the Investor Relations section of the Company’s website.
REPLAY
- By phone (available through Thursday, March 20, 2024)
-
Dial for the
U.S. orCanada 1 (800) 770-2030 or for International 1 (609) 800-9099 and enter the conference ID 7871199. - By webcast
- Visit the Investor Relations section of the Company’s website.
Footnotes
(1) |
Non-GAAP measure. See “Non-GAAP Financial Measures” and the reconciliation tables for the definitions and reconciliations of these non-GAAP financial measures to the most closely related GAAP financial measures. |
(2) |
All financial information incorporated within this press release is unaudited. |
(3) |
“Annual Recurring Revenue” and “Net Retention Revenue” are key performance indicators (KPIs). See “Key Performance Indicators” for the definitions and important disclosures related to these measures. |
(4) |
Because of the variability of items impacting net income and the unpredictability of future events, management is unable to reconcile without unreasonable effort the Company's forecasted adjusted EBITDA to a comparable GAAP measure. The unavailable information could have a significant impact on the non-GAAP measures. |
About FiscalNote
FiscalNote (NYSE: NOTE) is the leading SaaS provider of policy and regulatory intelligence. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers efficiently manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling effective decision making and giving organizations the competitive edge they need. Home to PolicyNote, CQ, Roll Call, VoterVoice, and many other industry-leading products and brands, FiscalNote serves thousands of customers worldwide with global offices in
Safe Harbor Statement
Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or FiscalNote’s future financial or operating performance. For example, statements regarding FiscalNote’s financial outlook for future periods, expectations regarding profitability, capital resources and anticipated growth in the industry in which FiscalNote operates are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “pro forma,” “may,” “should,” “could,” “might,” “plan,” “possible,” “project,” “strive,” “budget,” “forecast,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.
Factors that may impact such forward-looking statements include:
- FiscalNote’s ability to close its previously-announced divestitures of Oxford Analytica and Dragonfly Intelligence on the timeline anticipated or at all;
-
concentration of revenues from
U.S. government agencies, changes in theU.S. government spending priorities, dependence on winning or renewingU.S. government contracts, delay, disruption or unavailability of funding onU.S. government contracts, and theU.S. government’s right to modify, delay, curtail or terminate contracts; - FiscalNote’s ability to successfully execute on its strategy to achieve and sustain organic growth through a focus on its core Policy business, including risks to FiscalNote’s ability to develop, enhance, and integrate its existing platforms, products, and services, bring highly useful, reliable, secure and innovative products, product features and services to market, attract new customers, retain existing customers, expand its products and service offerings with existing customers, expand into geographic markets or identify other opportunities for growth;
- FiscalNote’s future capital requirements, as well as its ability to service its repayment obligations and maintain compliance with covenants and restrictions under its existing debt agreements;
- demand for FiscalNote’s services and the drivers of that demand;
- the impact of cost reduction initiatives undertaken by FiscalNote;
- risks associated with international operations, including compliance complexity and costs, increased exposure to fluctuations in currency exchange rates, political, social and economic instability, and supply chain disruptions;
- FiscalNote’s ability to introduce new features, integrations, capabilities, and enhancements to its products and services, as well as obtain and maintain accurate, comprehensive, or reliable data to support its products and services;
- FiscalNote's reliance on third-party systems and data, its ability to integrate such systems and data with its solutions and its potential inability to continue to support integration;
- FiscalNote’s ability to maintain and improve its methods and technologies, and anticipate new methods or technologies, for data collection, organization, and analysis to support its products and services;
- potential technical disruptions, cyberattacks, security, privacy or data breaches or other technical or security incidents that affect FiscalNote’s networks or systems or those of its service providers;
- competition and competitive pressures in the markets in which FiscalNote operates, including larger well-funded companies shifting their existing business models to become more competitive with FiscalNote;
-
FiscalNote’s ability to comply with laws and regulations in connection with selling products and services to
U.S. and foreign governments and other highly regulated industries; - FiscalNote’s ability to retain or recruit key personnel;
- FiscalNote’s ability to adapt its products and services for changes in laws and regulations or public perception, or changes in the enforcement of such laws, relating to artificial intelligence, machine learning, data privacy and government contracts;
- adverse general economic and market conditions reducing spending on our products and services;
- the outcome of any known and unknown litigation and regulatory proceedings;
- FiscalNote’s ability to maintain public company-quality internal control over financial reporting; and
- FiscalNote’s ability to protect and maintain its brands and other intellectual property rights.
These and other important factors discussed in FiscalNote’s SEC filings, including its most recent reports on Forms 10-K and 10-Q, particularly the "Risk Factors" sections of those reports, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by FiscalNote and its management, are inherently uncertain. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place reliance on forward-looking statements, which speak only as of the date they are made. FiscalNote undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
FiscalNote Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except shares and per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Subscription |
|
$ |
27,058 |
|
|
$ |
31,096 |
|
|
$ |
111,073 |
|
|
$ |
119,082 |
|
Advisory, advertising, and other |
|
|
2,411 |
|
|
|
3,169 |
|
|
|
9,193 |
|
|
|
13,563 |
|
Total revenues |
|
|
29,469 |
|
|
|
34,265 |
|
|
|
120,266 |
|
|
|
132,645 |
|
Operating expenses: (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues |
|
|
5,297 |
|
|
|
11,388 |
|
|
|
25,639 |
|
|
|
40,251 |
|
Research and development |
|
|
2,893 |
|
|
|
4,016 |
|
|
|
12,828 |
|
|
|
18,186 |
|
Sales and marketing |
|
|
7,571 |
|
|
|
10,500 |
|
|
|
35,055 |
|
|
|
45,722 |
|
Editorial |
|
|
4,776 |
|
|
|
4,336 |
|
|
|
18,528 |
|
|
|
17,869 |
|
General and administrative |
|
|
12,278 |
|
|
|
16,737 |
|
|
|
50,236 |
|
|
|
65,550 |
|
Amortization of intangible assets |
|
|
2,384 |
|
|
|
2,895 |
|
|
|
9,925 |
|
|
|
11,509 |
|
Impairment of goodwill and long-lived assets |
|
|
- |
|
|
|
26,227 |
|
|
|
- |
|
|
|
32,064 |
|
Transaction (gains) costs, net |
|
|
- |
|
|
|
(1,905 |
) |
|
|
(4 |
) |
|
|
(767 |
) |
Total operating expenses |
|
|
35,199 |
|
|
|
74,194 |
|
|
|
152,207 |
|
|
|
230,384 |
|
Operating loss |
|
|
(5,730 |
) |
|
|
(39,929 |
) |
|
|
(31,941 |
) |
|
|
(97,739 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sale of businesses |
|
|
(418 |
) |
|
|
- |
|
|
|
(72,017 |
) |
|
|
- |
|
Interest expense, net |
|
|
5,322 |
|
|
|
8,087 |
|
|
|
23,589 |
|
|
|
29,940 |
|
Change in fair value of financial instruments |
|
|
3,234 |
|
|
|
2,867 |
|
|
|
6,408 |
|
|
|
(15,983 |
) |
Loss on settlement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,474 |
|
Other expense (benefit), net |
|
|
108 |
|
|
|
(177 |
) |
|
|
26 |
|
|
|
68 |
|
Net (loss) income before income taxes |
|
|
(13,976 |
) |
|
|
(50,706 |
) |
|
|
10,053 |
|
|
|
(115,238 |
) |
Provision from income taxes |
|
|
(593 |
) |
|
|
42 |
|
|
|
536 |
|
|
|
223 |
|
Net (loss) income |
|
|
(13,383 |
) |
|
|
(50,748 |
) |
|
|
9,517 |
|
|
|
(115,461 |
) |
Other comprehensive (loss) income |
|
|
(1,361 |
) |
|
|
1,200 |
|
|
|
(299 |
) |
|
|
163 |
|
Total comprehensive (loss) income |
|
$ |
(14,744 |
) |
|
$ |
(49,548 |
) |
|
$ |
9,218 |
|
|
$ |
(115,298 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net (loss) income used to compute basic and diluted loss per share |
|
$ |
(13,383 |
) |
|
$ |
(50,748 |
) |
|
$ |
9,517 |
|
|
$ |
(115,461 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Loss) income per share attributable to common shareholders: |
|
|||||||||||||||
Basic and Diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.39 |
) |
|
$ |
0.07 |
|
|
$ |
(0.88 |
) |
Weighted average shares used in computing (loss) income per share attributable to common shareholders: |
|
|||||||||||||||
Basic and Diluted |
|
|
137,725,461 |
|
|
|
129,636,869 |
|
|
|
137,280,603 |
|
|
|
131,400,109 |
|
(1) Amounts include stock-based compensation expenses, as follows: |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Three Months Ended
|
|
|
Year Ended December 31, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Cost of revenues |
|
$ |
88 |
|
|
$ |
98 |
|
|
$ |
412 |
|
|
$ |
283 |
|
Research and development |
|
|
416 |
|
|
|
304 |
|
|
|
1,554 |
|
|
|
1,384 |
|
Sales and marketing |
|
|
385 |
|
|
|
339 |
|
|
|
1,567 |
|
|
|
2,057 |
|
Editorial |
|
|
222 |
|
|
|
108 |
|
|
|
687 |
|
|
|
400 |
|
General and administrative |
|
|
2,953 |
|
|
|
7,996 |
|
|
|
13,729 |
|
|
|
22,933 |
|
FiscalNote Holdings, Inc.
Consolidated Balance Sheets
(in thousands, except shares, and par value) |
||||||||
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
28,814 |
|
|
$ |
16,451 |
|
Restricted cash |
|
|
640 |
|
|
|
849 |
|
Short-term investments |
|
|
5,796 |
|
|
|
7,134 |
|
Accounts receivable, net |
|
|
13,465 |
|
|
|
16,931 |
|
Costs capitalized to obtain revenue contracts, net |
|
|
3,016 |
|
|
|
3,326 |
|
Prepaid expenses |
|
|
2,548 |
|
|
|
2,593 |
|
Other current assets |
|
|
2,908 |
|
|
|
2,521 |
|
Total current assets |
|
|
57,187 |
|
|
|
49,805 |
|
|
|
|
|
|
|
|
||
Property and equipment, net |
|
|
5,051 |
|
|
|
6,141 |
|
Capitalized software costs, net |
|
|
15,099 |
|
|
|
13,372 |
|
Noncurrent costs capitalized to obtain revenue contracts, net |
|
|
3,197 |
|
|
|
4,257 |
|
Operating lease assets |
|
|
15,620 |
|
|
|
17,782 |
|
Goodwill |
|
|
159,061 |
|
|
|
187,703 |
|
Customer relationships, net |
|
|
41,717 |
|
|
|
53,917 |
|
Database, net |
|
|
16,147 |
|
|
|
18,838 |
|
Other intangible assets, net |
|
|
13,018 |
|
|
|
18,113 |
|
Other non-current assets |
|
|
100 |
|
|
|
633 |
|
Total assets |
|
$ |
326,197 |
|
|
$ |
370,561 |
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current maturities of long-term debt |
|
$ |
15,905 |
|
|
$ |
105 |
|
Accounts payable and accrued expenses |
|
|
8,462 |
|
|
|
12,909 |
|
Deferred revenue, current portion |
|
|
35,253 |
|
|
|
43,530 |
|
Customer deposits |
|
|
1,850 |
|
|
|
3,032 |
|
Contingent liabilities from acquisitions, current portion |
|
|
- |
|
|
|
130 |
|
Operating lease liabilities, current portion |
|
|
3,386 |
|
|
|
3,066 |
|
Other current liabilities |
|
|
2,266 |
|
|
|
2,878 |
|
Total current liabilities |
|
|
67,122 |
|
|
|
65,650 |
|
|
|
|
|
|
|
|
||
Long-term debt, net of current maturities |
|
|
131,172 |
|
|
|
222,310 |
|
Deferred tax liabilities |
|
|
1,934 |
|
|
|
2,178 |
|
Deferred revenue, net of current portion |
|
|
222 |
|
|
|
875 |
|
Operating lease liabilities, net of current portion |
|
|
22,490 |
|
|
|
26,162 |
|
Public and private warrant liabilities |
|
|
2,458 |
|
|
|
4,761 |
|
Other non-current liabilities |
|
|
2,968 |
|
|
|
5,166 |
|
Total liabilities |
|
|
228,366 |
|
|
|
327,102 |
|
Commitment and contingencies |
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Class A Common stock ( |
|
|
14 |
|
|
|
11 |
|
Class B Common stock ( |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
899,929 |
|
|
|
860,485 |
|
Accumulated other comprehensive income (loss) |
|
|
4,786 |
|
|
|
(622 |
) |
Accumulated deficit |
|
|
(806,899 |
) |
|
|
(816,416 |
) |
Total stockholders' equity |
|
|
97,831 |
|
|
|
43,459 |
|
Total liabilities and stockholders' equity |
|
$ |
326,197 |
|
|
$ |
370,561 |
|
FiscalNote Holdings, Inc.
Consolidated Statements of Cash Flows
(in thousands) |
||||||||
|
|
Years Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating Activities: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
9,517 |
|
|
$ |
(115,461 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
1,241 |
|
|
|
1,348 |
|
Amortization of intangible assets and capitalized software development costs |
|
|
18,628 |
|
|
|
27,369 |
|
Amortization of deferred costs to obtain revenue contracts |
|
|
3,707 |
|
|
|
3,617 |
|
Impairment of goodwill and other long-lived assets |
|
|
- |
|
|
|
32,064 |
|
Gain on sale of businesses |
|
|
(72,017 |
) |
|
|
- |
|
Non-cash operating lease expense |
|
|
2,060 |
|
|
|
3,264 |
|
Stock-based compensation |
|
|
17,949 |
|
|
|
27,057 |
|
Non-cash earnout benefit |
|
|
- |
|
|
|
(530 |
) |
Loss on settlement |
|
|
- |
|
|
|
3,474 |
|
Bad debt expense |
|
|
148 |
|
|
|
423 |
|
Change in fair value of acquisition contingent consideration |
|
|
(117 |
) |
|
|
(2,043 |
) |
Change in fair value of financial instruments |
|
|
6,408 |
|
|
|
(15,983 |
) |
Deferred income tax provision (benefit) |
|
|
(162 |
) |
|
|
72 |
|
Paid-in-kind interest, net |
|
|
7,963 |
|
|
|
6,060 |
|
Other non-cash items |
|
|
177 |
|
|
|
32 |
|
Non-cash interest expense |
|
|
3,068 |
|
|
|
3,919 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
1,836 |
|
|
|
(287 |
) |
Prepaid expenses and other current assets |
|
|
592 |
|
|
|
3,421 |
|
Costs capitalized to obtain revenue contracts, net |
|
|
(2,902 |
) |
|
|
(4,443 |
) |
Other non-current assets |
|
|
228 |
|
|
|
(180 |
) |
Accounts payable and accrued expenses |
|
|
(1,111 |
) |
|
|
(6,426 |
) |
Deferred revenue |
|
|
1,032 |
|
|
|
4,123 |
|
Customer deposits |
|
|
(194 |
) |
|
|
(198 |
) |
Other current liabilities |
|
|
(441 |
) |
|
|
269 |
|
Contingent liabilities from acquisitions, net of current portion |
|
|
(13 |
) |
|
|
(39 |
) |
Lease liabilities |
|
|
(3,117 |
) |
|
|
(6,626 |
) |
Other non-current liabilities |
|
|
222 |
|
|
|
210 |
|
Net cash used in operating activities |
|
|
(5,298 |
) |
|
|
(35,494 |
) |
|
|
|
|
|
|
|
||
Investing Activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(8,884 |
) |
|
|
(7,938 |
) |
Cash proceeds from the sale of businesses, net |
|
|
98,052 |
|
|
|
- |
|
Cash paid for business acquisitions, net of cash acquired |
|
|
- |
|
|
|
(5,010 |
) |
Purchases of short-term investments |
|
|
- |
|
|
|
(7,369 |
) |
Net cash provided by (used in) investing activities |
|
|
89,168 |
|
|
|
(20,317 |
) |
|
|
|
|
|
|
|
||
Financing Activities: |
|
|
|
|
|
|
||
Proceeds from long-term debt, net of issuance costs |
|
|
6,301 |
|
|
|
11,500 |
|
Principal payments of long-term debt |
|
|
(70,808 |
) |
|
|
(107 |
) |
Payment of deferred financing costs |
|
|
(7,399 |
) |
|
|
- |
|
Proceeds from exercise of stock options and ESPP purchases |
|
|
474 |
|
|
|
684 |
|
Net cash (used in) provided by financing activities |
|
|
(71,432 |
) |
|
|
12,077 |
|
|
|
|
|
|
|
|
||
Effects of exchange rates on cash |
|
|
(284 |
) |
|
|
(189 |
) |
|
|
|
|
|
|
|
||
Net change in cash, cash equivalents, and restricted cash |
|
|
12,154 |
|
|
|
(43,923 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
17,300 |
|
|
|
61,223 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
29,454 |
|
|
$ |
17,300 |
|
|
|
|
|
|
|
|
||
Supplemental Noncash Investing and Financing Activities: |
|
|
|
|
|
|
||
Issuance of common stock for conversion of debt and interest |
|
$ |
20,946 |
|
|
$ |
- |
|
Amounts held in escrow related to the sale of Board.org |
|
$ |
285 |
|
|
$ |
- |
|
Issuance of common stock in connection with business acquisitions |
|
$ |
- |
|
|
$ |
9,539 |
|
Warrants issued in conjunction with long-term debt issuance |
|
$ |
- |
|
|
$ |
178 |
|
Property and equipment purchases in accounts payable |
|
$ |
88 |
|
|
$ |
161 |
|
|
|
|
|
|
|
|
||
Supplemental Cash Flow Activities: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
14,732 |
|
|
$ |
20,679 |
|
Cash paid for taxes |
|
$ |
274 |
|
|
$ |
55 |
|
Non-GAAP Financial Measures(2)
In addition to financial measures prepared in accordance with
Adjusted Gross Profit and Adjusted Gross Profit Margin
We define Adjusted Gross Profit as Total revenues minus cost of revenues, including amortization of capitalized software development costs and acquired developed technology, before amortization of intangible assets that are included in costs of revenues. We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by Total Revenues.
We use Adjusted Gross Profit and Adjusted Gross Profit Margin to understand and evaluate our core operating performance and trends. We believe these metrics are useful measures to us and to our investors to assist in evaluating our core operating performance because they provide consistency and direct comparability with our past financial performance and between fiscal periods, as the metrics eliminate the non-cash effects of amortization of intangible assets that may fluctuate for reasons unrelated to overall operating performance.
Adjusted Gross Profit and Adjusted Gross Profit Margin have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. They should not be considered as replacements for gross profit and gross profit margin, as determined by GAAP, or as measures of our profitability. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP measures only for supplemental purposes. Adjusted Gross Profit and Adjusted Gross Profit Margin as presented herein are not necessarily comparable to similarly titled measures presented by other companies.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA reflects further adjustments to EBITDA to exclude certain non-cash items and other items that management believes are not indicative of ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Total Revenues.
We disclose EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin herein because these non-GAAP measures are key measures used by management to evaluate our business, measure our operating performance and make strategic decisions. We believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are useful for investors and others in understanding and evaluating our operating results in the same manner as management. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are not financial measures calculated in accordance with GAAP and should not be considered as substitutes for net income (loss), net income (loss) before income taxes, or any other operating performance measure calculated in accordance with GAAP. Using these non-GAAP financial measures to analyze our business would have material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in our industry may report measures titled EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin or similar measures, such non-GAAP financial measures may be calculated differently from how we calculate non-GAAP financial measures, which reduces their comparability. Because of these limitations, you should consider EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin alongside other financial performance measures, including net income and our other financial results presented in accordance with GAAP.
Adjusted Gross Profit and Adjusted Gross Profit Margin
The following table presents our calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin for the periods presented:
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
||||||||||
(In thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Total Revenues |
|
$ |
29,469 |
|
|
$ |
34,265 |
|
|
$ |
120,266 |
|
|
$ |
132,645 |
|
Costs of revenue, including amortization of capitalized software development costs and acquired developed technology |
|
|
(5,297 |
) |
|
|
(11,388 |
) |
|
|
(25,639 |
) |
|
|
(40,251 |
) |
Gross Profit |
|
$ |
24,172 |
|
|
$ |
22,877 |
|
|
$ |
94,627 |
|
|
$ |
92,394 |
|
Gross Profit Margin |
|
|
82 |
% |
|
|
67 |
% |
|
|
79 |
% |
|
|
70 |
% |
Gross Profit |
|
$ |
24,172 |
|
|
$ |
22,877 |
|
|
$ |
94,627 |
|
|
$ |
92,394 |
|
Amortization of intangible assets |
|
|
1,544 |
|
|
|
5,407 |
|
|
|
8,703 |
|
|
|
15,861 |
|
Adjusted Gross Profit |
|
$ |
25,716 |
|
|
$ |
28,284 |
|
|
$ |
103,330 |
|
|
$ |
108,255 |
|
Adjusted Gross Profit Margin |
|
|
87 |
% |
|
|
83 |
% |
|
|
86 |
% |
|
|
82 |
% |
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
The following table presents our calculation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin for the periods presented:
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
||||||||||
(In thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net (loss) income |
|
$ |
(13,383 |
) |
|
$ |
(50,748 |
) |
|
$ |
9,517 |
|
|
$ |
(115,461 |
) |
Provision from income taxes |
|
|
(593 |
) |
|
|
42 |
|
|
|
536 |
|
|
|
223 |
|
Depreciation and amortization |
|
|
4,265 |
|
|
|
8,644 |
|
|
|
19,869 |
|
|
|
28,718 |
|
Interest expense, net |
|
|
5,322 |
|
|
|
8,087 |
|
|
|
23,589 |
|
|
|
29,940 |
|
EBITDA |
|
|
(4,389 |
) |
|
|
(33,975 |
) |
|
|
53,511 |
|
|
|
(56,580 |
) |
Gain on sale of businesses (a) |
|
|
(418 |
) |
|
|
- |
|
|
|
(72,017 |
) |
|
|
- |
|
Stock-based compensation |
|
|
4,064 |
|
|
|
8,845 |
|
|
|
17,949 |
|
|
|
27,057 |
|
Change in fair value of financial instruments (b) |
|
|
3,234 |
|
|
|
2,867 |
|
|
|
6,408 |
|
|
|
(15,983 |
) |
Other non-cash charges (c) |
|
|
7 |
|
|
|
24,295 |
|
|
|
100 |
|
|
|
29,522 |
|
Acquisition and disposal related costs (d) |
|
|
461 |
|
|
|
- |
|
|
|
1,599 |
|
|
|
1,391 |
|
Employee severance costs (e) |
|
|
- |
|
|
|
729 |
|
|
|
635 |
|
|
|
2,039 |
|
Non-capitalizable debt raising costs |
|
|
150 |
|
|
|
226 |
|
|
|
677 |
|
|
|
542 |
|
Business combination with DSAC (f) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
415 |
|
Loss contingency (g) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,091 |
|
Costs incurrred related to the Special Committee (h) |
|
|
237 |
|
|
|
- |
|
|
|
919 |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
3,346 |
|
|
$ |
2,987 |
|
|
$ |
9,781 |
|
|
$ |
(7,506 |
) |
Adjusted EBITDA Margin |
|
|
11 |
% |
|
|
9 |
% |
|
|
8 |
% |
|
|
(6 |
)% |
(a) |
Reflects the gain on disposal from the sale of Board.org on March 11, 2024 and the sale of Aicel on October 31, 2024. |
(b) |
Reflects the non-cash impact from the mark to market adjustments on our financial instruments. |
(c) |
Reflects the non-cash impact of the following for fiscal year 2024: (i) unrealized loss of |
(d) |
In 2024 reflects the costs incurred related to the sale of Board.org and Aicel, and the planned sale of Oxford Analytica and Dragonfly, principally consisting of advisory, legal, and other professional and consulting costs. In 2023 reflects the costs incurred to identify, consider, and complete business combination transactions consisting of advisory, legal, and other professional and consulting costs. |
(e) |
Severance costs associated with workforce changes related to business realignment actions |
(f) |
Includes non-capitalizable transaction costs incurred within one year of the Business Combination with DSAC. |
(g) |
Reflects (i) |
(h) |
Reflects costs incurred related to the Special Committee. |
Key Performance Indicators
We monitor the following key performance indicators to evaluate growth trends, prepare financial projections, make strategic decisions, and measure the effectiveness of our sales and marketing efforts. Our management team assesses our performance based on these key performance indicators because it believes they reflect the underlying trends of our business and serve as meaningful measures of our ongoing operational performance.
Annual Recurring Revenue (“ARR”)
Approximately
Net Revenue Retention (“NRR”)
Our NRR, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our NRR for a given period as ARR at the end of the period minus ARR contracted from new clients for which there is no historical revenue booked during the period, divided by the beginning ARR for the period. We calculate NRR at a parent account level. Customers from acquisitions are not included in NRR until they have been part of our consolidated results for 12 months. Accordingly, the 2023 Acquisition was not included in our NRR for the year ended December 31, 2023. Our calculation of NRR for any fiscal period includes the positive recurring revenue impacts of selling additional licenses and services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our NRR may fluctuate as a result of a number of factors, including the growing level of our revenue base, the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313263302/en/
Media
Yojin Yoon
FiscalNote
press@fiscalnote.com
Investor Relations
Bob Burrows
FiscalNote
IR@fiscalnote.com
Source: FiscalNote
FAQ
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