NYSE$NOTE

Fiscalnote Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$34M

Previous: $29.1M+17.0%
EPS (adj)

-$0.11

Previous: -$0.75+85.3%
Net Revenue Retention

100.0%

Previous: 99.0%+1.0%
Capital Expenditures

-$1.87M

No prior period
Free Cash Flow

-$14.5M

Previous: -$109M+86.7%
Net Income

-$14.5M

Previous: -$109M+86.7%
Operating Income

-$13.5M

Previous: -$44.1M+69.5%
Gross Profit

$26K

Previous: $1.34M-98.1%
Cash & Equivalents

$16.5M

Previous: $78M-78.9%
Total Assets

$401M

Previous: $450M-11.0%
R&D Expense

$4.54M

No prior period
Stock-Based Comp

$6.22M

Previous: $30M-79.3%

Revenue & EPS history

FiscalNote · Revenue · Quarterly

$34M

Q3 2023+17%vs Q3 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

FiscalNote · $30.1M total across 1 segment · Q3 2023

  • Subscription Revenue
    $30.1M+15.3%

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.

Tailwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-3.8%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-11.4%

Avg return

30 days after

28%

5 / 18 earnings

Positive

+25.7%

Q3 2022

Best reaction

-37.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%+4.6%
Q4 2025-1.5%-42.9%-72.3%
Q3 2025+2.0%-9.3%-33.7%
Q1 2025-2.8%+5.1%-23.1%
Q4 2024-4.4%+4.7%-30.6%
Q3 2024-17.8%-14.4%-3.7%
Q2 2024-5.8%-7.9%-14.4%
Q1 2024+4.1%+24.6%-6.6%
Q4 2023-17.2%-13.8%-36.9%
Q3 2023-37.9%-39.4%-11.4%
Q2 2023-27.2%-18.3%-40.0%
Q1 2023+15.5%+22.4%+74.5%
Q4 2022+5.6%+23.9%+0.0%
Q3 2022+25.7%+22.6%+17.3%
Q2 2022-3.3%+1.4%-12.9%
Q1 2022-0.2%-0.2%-0.4%
Q4 2021-0.1%+0.0%+0.2%
Q3 2021-0.2%+0.1%-0.1%

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