The following is a summary of the FiscalNote Holdings, Inc. (NOTE) Q2 2024 Earnings Call Transcript:
Financial Performance:
FiscalNote reported Q2 2024 revenue of $29.2 million, lower than the previous year due to the divestiture of Board.org.
Subscription revenue comprised 93% of total revenue, aligning with historical trends.
The company achieved positive adjusted EBITDA of $2 million, marking four consecutive quarters of positive performance.
Expenses decreased by $11 million compared to the previous year, reflecting cost-saving initiatives and the impact of Board.org divestiture.
Business Progress:
FiscalNote made significant product launches in Q2, including StressLens and two new Copilots, aimed at enhancing efficiency and impact on policy and legislative workflows.
The company focuses on high-return business segments to improve client retention rates, margins, and profitability.
Continuous investments in product innovation are expected to drive higher customer engagement and revenue growth.
Opportunities:
FiscalNote is capitalizing on a large $40 billion addressable market driven by increasing global uncertainty and regulatory complexity.
The company's leading position in AI and deep patent portfolio in generative and domain-specific AI offers competitive advantages.
New AI-driven features are expected to render traditional methods of analyzing legislative and political risks obsolete, opening significant opportunities for FiscalNote.
Risks:
Lowered revenue forecasts due to customer churn, influenced by macroeconomic conditions and slower product launch schedules.
Despite optimistic forecasts, the company acknowledges challenges in macroeconomic conditions affecting customer decisions and renewals.
More details: FiscalNote Holdings IR
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