Provides Initial 2023 Revenue Outlook and
Reiterates Path to Adjusted EBITDA Profitability in Q4 2023
FiscalNote Holdings, Inc. (NYSE: NOTE) (“FiscalNote”), a leading
AI-driven enterprise SaaS technology provider of global policy and
market intelligence, today provided select preliminary unaudited
financial results for the fiscal year ended December 31, 2022
including:
- Total GAAP revenue for the full year 2022 of approximately
$113.8 million, representing an increase of approximately 37% over
the prior year, at the high end of the revenue guidance range of
$112 million - $114 million, which the Company previously
provided.
- Organic run-rate revenue(1)(2) of approximately $125 million
and total run rate revenue(1) of approximately $127 million, both
of which would represent approximately 14% growth over the prior
year.
- Annual recurring revenue(1) of approximately $113 million at
December 31, 2022, inclusive of businesses acquired in 2022,
representing approximately 14% year-over-year growth.
FiscalNote is also issuing preliminary revenue guidance for 2023
as follows:
- GAAP revenue of $136 million - $141 million. This range
represents an approximate increase of 20% to 24%, respectively,
based on expected 2022 full-year results and inclusive of the
Company’s recent acquisition of Dragonfly Eye, Ltd.
- Total run-rate revenue(1)(3) of $148 million - $155 million
representing growth of 17% to 22% over the prior year inclusive of
the Company’s recent acquisition of Dragonfly Eye, Ltd.
The Company reiterated it remains on track to achieve positive
Adjusted EBITDA in the fourth quarter of 2023(4), and continues to
have a sufficient capital structure to support its current growth
plans and ongoing M&A opportunities.
Final results remain subject to audit. The Company expects to
report comprehensive fourth quarter and full year 2022 results and
to provide further details on its outlook for FY 2023 during its
Q4/FY 2022 investor call, scheduled for Tuesday, March 28,
2023.
“We continue to prove our compounding revenue model, accelerate
our AI leadership and innovation, and execute on our plan for
Adjusted EBITDA profitability in the near term,” said Tim Hwang,
FiscalNote’s Chairman, CEO, and Cofounder. “Enterprises and public
sector organizations alike view geopolitical uncertainty, market
volatility, and increased regulation as pressing concerns as they
seek stability, opportunities, and mitigation of risk. As a result,
we continue to serve the world’s most important decision makers as
an essential partner and see growing demand for our products and
expect this to carry on through 2023 and beyond. As the premier
provider of AI-enabled solutions to manage geopolitical and
regulatory risk, we are well positioned for ongoing growth through
any economic cycle.”
(1) “Run-Rate Revenue,” “Annual Recurring Revenue” or “ARR” and
“Net Revenue Retention”, are key performance indicators (KPIs).
Please see "Key Performance Indicators" in this earnings release
for the definitions and important disclosures regarding these
measures.
(2) Organic run rate revenue for 2022 includes businesses
acquired as of December 31, 2021, plus Aicel Technologies (for
which a definitive acquisition agreement was signed as of December
31, 2021, with closing conditioned upon FiscalNote’s public
listing).
(3) Total run rate revenue includes completed acquisitions but
does not include any future acquisitions under consideration.
(4) Because of the variability of items impacting net income and
unpredictability of future events, management is unable to
reconcile without unreasonable effort the Company's forecasted
adjusted EBITDA to a comparable GAAP measure.
About FiscalNote
FiscalNote (NYSE: NOTE) is a leading technology provider of
global policy and market intelligence. By uniquely combining AI
technology, actionable data, and expert and peer insights,
FiscalNote empowers customers to manage policy, address regulatory
developments, and mitigate global risk. Since 2013, FiscalNote has
pioneered technology that delivers mission-critical insights and
the tools to turn them into action. Home to CQ, FrontierView,
Oxford Analytica, VoterVoice, and many other industry-leading
brands, FiscalNote serves more than 5,000 customers worldwide with
global offices in North America, Europe, Asia, and Australia. To
learn more about FiscalNote and its family of brands, visit
FiscalNote.com and follow @FiscalNote.
Forward-Looking Statements
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. 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,
but are not limited to FiscalNote’s ability to effectively manage
its growth; changes in FiscalNote’s strategy, future operations,
financial position, estimated revenue and losses, forecasts,
projected costs, prospects and plans; FiscalNote’s future capital
requirements; demand for FiscalNote’s services and the drivers of
that demand; FiscalNote’s ability to provide highly useful,
reliable, secure and innovative products and services to its
customers; FiscalNote’s ability to attract new customers, retain
existing customers, expand its products and service offerings with
existing customers, expand into geographic markets or identify
areas of higher growth; 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 develop, enhance, and integrate its
existing platforms, products, and services; FiscalNote’s ability
to successfully identify acquisition opportunities, make
acquisitions on terms that are commercially satisfactory,
successfully integrate potential acquired businesses and services,
and subsequently grow acquired businesses; FiscalNote’s estimated
total addressable market and other industry and performance
projections; FiscalNote’s reliance on third-party systems that it
does not control to integrate with its systems and its potential
inability to continue to support integration; 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;
FiscalNote’s ability to obtain and maintain accurate,
comprehensive, or reliable data to support its products and
services; FiscalNote’s ability to introduce new features,
integrations, capabilities, and enhancements to its products and
services; 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; competition and competitive pressures in the markets
in which FiscalNote operates; larger well-funded companies
shifting their existing business models to become more competitive
with FiscalNote; FiscalNote’s ability to protect and maintain its
brands; 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
effectively maintain and grow its research and development team and
conduct research and development; 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; the impact of the COVID-19 pandemic and
other similar disruptions in the future; 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 successfully
establish and maintain public company-quality internal control over
financial reporting; intense competition and competitive pressures
from other companies worldwide in the industries in which the
combined company will operate; and litigation and the ability to
adequately protect FiscalNote’s intellectual property rights.
These and other important factors discussed under the caption
"Risk Factors" in FiscalNote’s Current Report on Form 8-K filed
with the SEC on August 2, 2022 and other filings with the SEC 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 undue 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.
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 and indicators of our business and serve as
meaningful indicators of our continuous operational
performance.
Annual Recurring Revenue (“ARR”)
Approximately 90% of our revenues are subscription based, which
leads to high revenue predictability. Our ability to retain
existing subscription customers is a key performance indicator that
helps explain the evolution of our historical results and is a
leading indicator of our revenues and cash flows for subsequent
periods. We use ARR as a measure of our revenue trend and an
indicator of our future revenue opportunity from existing recurring
subscription customer contracts. We calculate ARR on an account
level by annualizing the contracted subscription revenue, and our
total ARR as of the end of a period is the aggregate thereof. ARR
is not adjusted for the impact of any known or projected future
customer cancellations, upgrades or downgrades, or price increases
or decreases. The amount of actual revenue that we recognize over
any 12-month period is likely to differ from ARR at the beginning
of that period, sometimes significantly. This may occur due to
timing of the revenue bookings during the period, cancellations,
upgrades, or downgrades and pending renewals. ARR should be viewed
independently of revenue as it is an operating metric and is not
intended to be a replacement or forecast of revenue. Our
calculation of ARR may differ from similarly titled metrics
presented by other companies.
Run-Rate Revenue
Management also monitors run-rate revenue, which we define as
ARR plus non-subscription revenue earned during the last twelve
months. We believe run-rate revenue is an indicator of our total
revenue growth, incorporating the non-subscription revenue that we
believe is a meaningful contribution to our business as a whole.
Although our non-subscription business is non-recurring, we
regularly sell different advisory services to repeat customers. The
amount of actual subscription and non-subscription revenue that we
recognize over any 12-month period is likely to differ from
run-rate revenue at the beginning of that period, sometimes
significantly.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230301005516/en/
Media Nicholas Graham FiscalNote press@fiscalnote.com
Investors Sara Buda FiscalNote IR@fiscalnote.com
FiscaNote (NYSE:NOTE)
Historical Stock Chart
From Aug 2024 to Sep 2024
FiscaNote (NYSE:NOTE)
Historical Stock Chart
From Sep 2023 to Sep 2024