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Mar 31, 2023
FiscalNote Q1 2023 Earnings Report
FiscalNote's financial performance in Q1 2023, achieving 21% revenue growth year-over-year.
Key Takeaways
FiscalNote reported a 21% increase in revenue to $31.5 million for Q1 2023, driven by durable recurring revenue and high gross margins. The company reiterates its 2023 guidance and expects to be profitable in Q4 2023 on an Adjusted EBITDA basis.
Revenue increased 21% year-over-year to $31.5 million.
Subscription revenue grew 25% year-over-year, comprising approximately 90% of total revenue.
Gross profit was $22.6 million, representing a 72% gross margin.
The company reiterates its revenue guidance for full year 2023 and its expectation to be Adjusted EBITDA positive in the fourth quarter of 2023.
Revenue by Segment
Forward Guidance
FiscalNote reiterates its revenue guidance for full year 2023 and its expectation to be Adjusted EBITDA positive in the fourth quarter of 2023 as the Company continues to grow revenue, maintains strong adjusted gross margins in the 80% range, and realizes the benefits of its planned cost management actions.
Positive Outlook
- GAAP revenue of $32 million to $34 million, representing 18% to 25% year over year growth.
- The Company has implemented efficiency programs that leverage the Company’s prior investments in technology and sales and marketing to optimize operations, enhance the Company’s go to market strategy and reduce costs.
- GAAP revenue of $136 to $141 million, representing 20% to 24% year over year growth - inclusive of the Company’s January 2023 acquisition of Dragonfly Eye, Ltd.
- Total run-rate revenue of $148 million to $155 million representing growth of 17% to 22% over the prior year - inclusive of the Company’s acquisition of Dragonfly Eye, Ltd. - and growth of 10% to 16% over the prior year on an organic basis.
- FiscalNote expects to achieve approximately break-even Adjusted EBITDA in the third quarter and positive Adjusted EBITDA starting in the fourth quarter of 2023 with ongoing Adjusted EBITDA profitability growth moving forward.
Challenges Ahead
Historical Earnings Impact
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Avg. Return Before/After Earnings
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