The following is a summary of the FiscalNote Holdings, Inc. (NOTE) Q3 2024 Earnings Call Transcript:

Financial Performance:

• FiscalNote reported Q3 2024 revenue of $29.4 million, in line with forecasts but lower than the previous year, primarily due to the divestiture of Board.org.

• Subscription revenue constituted 93% of total revenue.

• Adjusted EBITDA for Q3 2024 was positive at $3.4 million, marking five consecutive quarters of positive EBITDA. The company raised its full-year adjusted EBITDA forecast to approximately $9 million.

• Gross margin for Q3 2024 was strong at 79% on a GAAP basis and 86% on an adjusted basis, reflecting improved efficiencies and the impact of divesting non-core assets.

Business Progress:

• FiscalNote continues to optimize its product portfolio, focusing on high-growth areas and leveraging AI technologies in new products such as Copilots for policy and Global Intelligence.

• The company has actively managed its capital structure, including the sales of Board.org and Aicel, aiming to deleverage and refine focus for sustained financial performance.

• The introduction of Can Babaoglu as Chief Product Officer is expected to drive product innovation and enhance customer experiences.

• The company is positioned to return to a trajectory of sustainable growth with a focus on international expansion and large enterprise segments in the corporate market.

Opportunities:

• Expansion and refinement of AI-enabled products, including Copilots for policy and Global Intelligence, align well with increasing customer demand for advanced data analysis and AI capabilities.

• International expansion offers significant growth potential, particularly in the global policy data and EU policy analysis segments.

Risks:

• The shift in leadership roles with Tim Hwang transitioning to Executive Chair might introduce challenges in maintaining strategic continuity and momentum.

• Continued refinement and possible divestment of certain product segments could affect short-term revenue even if they benefit long-term profitability and focus.

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