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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