FiscalNote Reports Fourth Quarter and Full Year 2024 Financial Results
FiscalNote Holdings, Inc. (NYSE: NOTE) (“FiscalNote” or the “Company”), a leading AI-driven enterprise SaaS technology provider of policy and global intelligence, today reported financial resu...
Exceeds Both Revenue and Adjusted EBITDA Forecasts for Both Fourth Quarter and Full Year 2024
Achieves First Full Year of Positive Adjusted EBITDA Driven by Margin Improvement of 1400 Basis Points Year-Over-Year
Recently Announced Non-Core Divestiture Expected to Close by Month End, Drives Incremental Operating Efficiencies, Increases Profitability, and Further Deleverages Balance Sheet
FY25 Guidance Reflects a Durable Core Business, Further Efficiency Initiatives and Sunset Product Lines; Expects Adjusted EBITDA Margins to Double on a Pro Forma Basis and Accelerate Path Towards Positive Free Cash Flow
Board of Directors Continues to Review All Strategic Options Available to the Company to Maximize Shareholder Value
Company to Host Conference Call Today at 5:00 p.m. EDT
WASHINGTON: FiscalNote Holdings, Inc. (NYSE: NOTE) (“FiscalNote” or the “Company”), a leading AI-driven enterprise SaaS technology provider of policy and global intelligence, today reported financial results for the fourth quarter and full year ended December 31, 2024.
The Company reported strong results in the quarter with $29.5 million in total revenues and adjusted EBITDA(1)of $3.3 million, both exceeding previous guidance. This performance was driven by its stable base of more than 4,000 customers, durable recurring revenue and high gross margins, and further efficiency initiatives all contributing to expanding adjusted EBITDA. The fourth quarter 2024 represented a 10% improvement in adjusted EBITDA year-over-year, and marked the sixth consecutive quarter of adjusted EBITDA profitability for the Company. In addition, the twelve months of 2024 marked the first full calendar year of reported adjusted EBITDA profitability in the Company’s history, an improvement of more than $17 million year over year.
Josh Resnik, CEO and President of FiscalNote, commented, “With today’s announcement, we are continuing to demonstrate expanding Adjusted EBITDA margins, an accelerating path to positive free cash flow, and a strong foundation for long term, durable growth. In 2024 we reduced our senior debt by 44%, further streamlined our operations, and achieved our first full calendar year of positive Adjusted EBITDA - a significant landmark for the Company. At the same time, we laid the groundwork for future product-led growth, leading to the launch of our new AI-focused PolicyNote platform in January of this year. Looking ahead to 2025, in addition to continuing to see the effects of our operational streamlining – through which we expect to expand Adjusted EBITDA margins by more than double year over year on a proforma basis – we are confident that our focus on product will reinforce our momentum and set the stage for accelerating growth in the future.”
Fourth Quarter 2024 Financial Highlights(2)
Fourth Quarter 2024 performance reflects expanded Adjusted Gross Margin, Adjusted EBITDA margin, and an improved balance sheet position.
Note - All amounts for the three months ended December 31, 2023 include contributions from the Board.org and Aicel businesses, which the Company divested on March 11, 2024 and October 31, 2024, respectively.
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| Three Months Ended December 31, |
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($ in millions) |
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| 2024 |
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| 2023 |
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| % Change |
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Total Revenues (formerly "GAAP Revenue") |
| $ |
| 29.5 |
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| $ |
| 34.3 |
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| (14 | ) | % |
Subscription Revenue as % of Total Revenues |
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| 92 |
| % |
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| 91 |
| % |
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| 100 |
| bps |
Gross Profit |
| $ |
| 24.2 |
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| $ |
| 22.9 |
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| 6 |
| % |
Gross Margin |
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| 82 |
| % |
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| 67 |
| % |
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| 1500 |
| bps |
Adjusted Gross Profit (1) |
| $ |
| 25.7 |
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| $ |
| 28.3 |
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| (9 | ) | % |
Adjusted Gross Margin (1) |
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| 87 |
| % |
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| 83 |
| % |
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| 400 |
| bps |
Net Loss |
| $ |
| (13.4 | ) |
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| $ |
| (50.7 | ) |
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| (74 | ) | % |
Adjusted EBITDA (1) |
| $ |
| 3.3 |
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| $ |
| 3.0 |
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| * | |
Adjusted EBITDA Margin (1) |
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| 11 |
| % |
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| 9 |
| % |
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| 200 |
| bps |
Cash and Cash Equivalents |
| $ |
| 35.3 |
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| $ |
| 24.4 |
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bps - Basis Points |
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* - percentage change is greater than +/- 100% |
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Fourth Quarter 2024 and Recent Operational Highlights
- Unveiled in January 2025 PolicyNote, the Company’s new AI-focused platform for policy and regulation – leveraging FiscalNote’s breadth and depth of data as well as its proprietary policy analysis and AI technology via a consolidated user interface to drive deeper customer engagement, strengthen customer retention, accelerate future innovation, reduce ongoing maintenance costs, and expand long-term growth opportunities.
- Signed in February 2025 a definitive agreement to divest Oxford Analytica and Dragonfly Intelligence, two companies within the Company’s global intelligence business, for total consideration of $40.0 million, with closing anticipated by the end of March 2025, subject to receipt of regulatory approval and other customary closing conditions, continuing to advance the Company’s strategic goals of strengthening the balance sheet, streamlining operations and focusing on its core policy business.
- Signed in February 2025 a contracting engagement with Palantir’s former head of federal contracting, John Lee, to support the Company in its continuing mission to equip the public sector with cutting-edge AI and data-driven solutions that enhance operational efficiency, responsiveness, and decision-making.
- Executed a successful leadership succession plan to drive the next phase of growth, as Co-Founder Tim Hwang transitioned to Executive Chairman to focus on strategic initiatives and the continuity of FiscalNote’s mission after nearly 12 years as Chief Executive Officer, and Josh Resnik – who has extensive operating experience and has been instrumental in advancing FiscalNote’s product strategy and operational effectiveness – was promoted to Chief Executive Officer, effective January 1, 2025.
- Completed the divestiture of its South Korea subsidiary, Aicel Technologies, for a total consideration of $9.6 million, a continuation of the Company’s strategy of divesting non-core assets to unlock underlying value, reduce business complexity, and drive improved enterprise operating efficiency while further deleveraging the Company’s balance sheet through the prepayment of senior debt using the net cash proceeds from the transaction.
Fourth Quarter 2024 Financial Performance
Revenue(2)
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| Three Months Ended December 31, |
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($ in millions) |
| 2024 |
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| 2023 |
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| % Change | |||||
Subscription revenue |
| $ | 27.1 |
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| $ | 31.1 |
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| (13 | ) | % |
Advisory, advertising, and other revenue |
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| 2.4 |
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| 3.2 |
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| (24 | ) | % |
Total revenues |
| $ | 29.5 |
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| $ | 34.3 |
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| (14 | ) | % |
For Q4 2024, subscription revenue declined $4.0 million, or 13%, versus prior year, due primarily to the impact of the Board.org and Aicel divestitures. Excluding the impact of Board.org and Aicel, subscription revenue decreased by $0.2 million, or 1%.
For Q4 2024, advisory, advertising, and other revenue decreased $0.8 million, or 24%, versus prior year, due primarily to the discontinuation of certain non-strategic products. Excluding the impact of discontinued products, advisory, advertising, and other revenue decreased $0.1 million, or 4%.
Key Performance Indicators(2)(3)
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| As of December 31, |
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($ in millions) |
| 2024 |
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| 2023 |
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| % Change |
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Annual Recurring Revenue (ARR) |
| $ | 107.0 |
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| $ | 126.0 |
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| (15 | )% |
Pro Forma ARR* |
| $ | 107.0 |
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| $ | 109.0 |
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| (2 | )% |
*Pro forma ARR adjusts prior periods for the impact of the divestiture of Board.org and Aicel.
As of December 31, 2024, ARR declined $19 million, or 15%, principally due to the impact of the divestitures of Board.org and Aicel. Excluding Board.org and Aicel, ARR declined 2% compared to December 31, 2023.
For the three months ended December 31, 2024, Net Revenue Retention (NRR) was 98%, 100 basis points lower than the same period in 2023.
Operating Expenses(2)
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| (Unaudited) |
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| Three Months Ended December 31, |
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($ in millions) |
| 2024 |
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| 2023 |
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| % Change |
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Cost of revenues, including amortization |
| $ | 5.3 |
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| $ | 11.4 |
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| (53 | )% |
Research and development |
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| 2.9 |
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| 4.0 |
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| (28 | )% |
Sales and marketing |
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| 7.6 |
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| 10.5 |
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| (28 | )% |
Editorial |
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| 4.8 |
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| 4.3 |
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| 10 | % |
General and administrative |
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| 12.3 |
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| 16.7 |
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| (27 | )% |
Amortization of intangible assets |
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| 2.4 |
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| 2.9 |
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| (18 | )% |
Goodwill impairment |
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| - |
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| 26.2 |
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| * |
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Other |
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| - |
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| (1.9 | ) |
| * |
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Total operating expenses |
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