Sep 30, 2023

FiscalNote Q3 2023 Earnings Report

Announced third quarter 2023 financial results, reaching Adjusted EBITDA profitability and delivering 17% revenue growth year-over-year.

Key Takeaways

FiscalNote announced its Q3 2023 financial results, marking its first quarter of Adjusted EBITDA profitability, one quarter earlier than initially forecast. Revenue increased by 17% year-over-year to $34.0 million, driven by ongoing demand for FiscalNote’s trusted, AI-enabled global policy and market intelligence.

Revenue increased 17% to $34.0 million compared to Q3 2022.

Subscription revenue, which comprises approximately 89% of total revenue, grew 15% year-over-year.

Gross profit was $23.6 million representing 69% gross margin.

Adjusted EBITDA was $0.7 million, an increase of approximately $8 million year-over-year.

Total Revenue
$34M
Previous year: $29.1M
+17.0%
EPS
-$0.11
Previous year: -$0.75
-85.3%
Run Rate Revenue
$138M
Previous year: $121M
+14.0%
Net Revenue Retention
100%
Previous year: 99%
+1.0%
Gross Profit
$23.6M
Previous year: $29.1M
-18.8%
Cash and Equivalents
$24.4M
Previous year: $78.8M
-69.0%
Free Cash Flow
-$13.6M
Total Assets
$401M
Previous year: $450M
-11.0%

FiscalNote

FiscalNote

FiscalNote Revenue by Segment

Forward Guidance

FiscalNote expects ongoing Adjusted EBITDA growth in the fourth quarter as the Company continues to deliver year-over-year revenue growth and maintain strong adjusted gross profit margins.

Positive Outlook

  • GAAP revenue of $34 million to $35 million, representing 8% to 11% year-over-year growth.
  • Adjusted EBITDA of approximately $2.5 million for the quarter and an annualized Adjusted EBITDA of approximately $10 million exiting the year.
  • Year-on-year improvement of approximately $8 million in adjusted EBITDA profitability compared to Q4 2022 reflecting the benefits of the efficiency programs the Company implemented in 2023.
  • GAAP revenue of $132 million to $133 million for full year 2023, representing 16% to 17% year-over-year growth.
  • Total run-rate revenue of $139 million to $141 million for full year 2023, representing growth of 10% to 11% over the prior year.