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FiscalNote reports 17% revenue jump in Q3, eyes private status

EditorPollock Mondal
Published 22/11/2023, 15:52
© Reuters.
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WASHINGTON - FiscalNote Holdings, a leading provider of AI-driven enterprise software for government and corporate customers, has reported a significant uptick in its financial performance for the third quarter. The company's revenue grew by 17% to $34 million, with subscription revenues seeing a 15% increase. This growth has propelled the company to achieve Adjusted EBITDA profitability ahead of schedule, boasting a non-GAAP adjusted gross profit of $28.4 million. However, FiscalNote also recorded a GAAP net loss of $14.5 million during the same period.

The company's operational metrics paint a promising picture, with run-rate revenue reaching $138 million, marking a 14% rise, and organic run-rate growth climbing to $129 million at a rate of 7%. The Annual Recurring Revenue (ARR) has similarly increased by 14% to stand at $123 million. The Net Revenue Retention (NRR) rate remains stable around the 100% mark.

In the past quarter, FiscalNote has rolled out several strategic initiatives that have been instrumental in driving growth:

  • The launch of the Risk Connector, designed to help organizations navigate regulatory risk.
  • The introduction of the AI Co-Pilot Program aimed at enhancing decision-making processes.
  • Enhancements to both the EUIT and FiscalNoteGPT platforms to improve user experience and functionality.

In addition to these product developments, FiscalNote's Board's Special Committee is currently considering a proposal from the CEO to take the company private.

Looking ahead, FiscalNote has provided forecasts for the fourth quarter that include GAAP revenues estimated between $34-35 million and an Adjusted EBITDA of approximately $2.5 million. The annual outlook anticipates GAAP revenues ranging from $132-133 million with an adjusted EBITDA shortfall near $8 million.

The company's balance sheet remains strong with cash and equivalents totaling $24.4 million and available debt capacity standing at approximately $94 million. This positions FiscalNote solidly for both ongoing operations and future investments as it navigates the next phase of its growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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