On August 8, 2024, FiscalNote Holdings Inc (NOTE, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. FiscalNote Holdings Inc is a provider of global policy and market intelligence solutions, leveraging AI and analytics to deliver actionable legal and policy insights for businesses, government institutions, and nonprofits.
Performance Overview
FiscalNote Holdings Inc (NOTE, Financial) reported total revenues of $29.2 million for Q2 2024, slightly surpassing the analyst estimate of $29.09 million. The company also achieved an adjusted EBITDA of $1.8 million, marking its fourth consecutive quarter of positive adjusted EBITDA. This performance underscores the company's ongoing leadership in delivering AI-enabled policy and market information.
Financial Achievements and Challenges
Despite a year-over-year decline in total revenues from $32.8 million to $29.2 million, FiscalNote Holdings Inc (NOTE, Financial) demonstrated significant improvement in its adjusted EBITDA, which rose from a loss of $4.3 million in Q2 2023 to a positive $1.8 million in Q2 2024. This improvement is attributed to the company's focus on durable recurring revenue and high gross margins.
However, the company faced challenges, including a decline in subscription revenue by 8% and advisory, advertising, and other revenue by 38%, primarily due to the divestiture of Board.org and discontinuation of certain non-strategic products.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenues | $29.2 million | $32.8 million | (11)% |
| Gross Profit | $22.4 million | $23.4 million | (4)% |
| Gross Margin | 77% | 71% | 600 bps |
| Net Loss | $(12.8) million | $(31.0) million | 59% |
| Adjusted EBITDA | $1.8 million | $(4.3) million | * |
* - percentage change is greater than +/- 100%
Operational Highlights
FiscalNote Holdings Inc (NOTE, Financial) showcased its AI leadership during the “AI Product Day 2024” event, introducing FiscalNote Copilot for Policy and announcing strategic partnerships with Creolytix and Empowered Systems. These initiatives are expected to drive higher customer engagement, retention rates, and revenue growth in 2025 and beyond.
Financial Forecast
For Q3 2024, the company forecasts total revenues of approximately $29 million and adjusted EBITDA of approximately $2 million. For the full year 2024, FiscalNote Holdings Inc (NOTE, Financial) has revised its total revenue forecast to approximately $121 million and adjusted EBITDA to approximately $8 million, reflecting continued operational efficiencies and strategic investments.
Conclusion
FiscalNote Holdings Inc (NOTE, Financial) continues to demonstrate resilience and strategic growth, driven by its AI-enabled solutions and strong customer base. The company's focus on profitability and operational efficiency positions it well for future growth, despite the challenges posed by macroeconomic headwinds and product divestitures.
“Our second quarter results exceeded our forecast, as we continued to both invest in our product strategy and extract operating efficiencies,” said Jon Slabaugh, Chief Financial Officer of FiscalNote Holdings Inc.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from FiscalNote Holdings Inc for further details.
