FiscalNote Announces Leadership Change Amid Quarterly Results

In a recent report, FiscalNote shared its Q3 2024 financial results, highlighting a smooth leadership transition and focusing on future growth strategies. The company's positive adjusted EBITDA underscores strong operational discipline, despite a slight decrease in revenue.

Date: 13-11-2024

AI Rating: 6

Earnings Performance

FiscalNote reported a GAAP net loss of approximately $14.9 million for Q3 2024, which is consistent with prior-year results. However, the company achieved a significant milestone with positive adjusted EBITDA of $3.4 million, marking five consecutive quarters of growth in this key financial metric. This reflects a clear commitment to improving financial performance.

Revenue Changes

Total revenue for Q3 2024 was $29.4 million, aligning with forecasts, but this represents a decline compared to the previous year, primarily due to the divestiture of Board.Org. However, subscription revenues accounted for 93% of the total, indicating a strong foundation for future business sustainability.

Profit Margins

FiscalNote achieved impressive gross margins of 79% in Q3 2024, with adjusted gross margins of 86%. These margins benefited from the successful divestiture of less profitable units, showcasing improved operational efficiency and focus on high-margin subscription services.

Operational Efficiency

The company's strategy revolves around optimizing its cost structure, which resulted in a 24% year-over-year decrease in total operating expenses. These efforts culminate in a strengthened financial structure that should attract investor confidence.

Market Position and Leadership Transition

The transition in leadership, with Josh Resnik stepping into the role of CEO, adds a layer of potential optimism for investors. This change may herald new strategic initiatives aimed at expanding market reach and product offerings, particularly in the international sectors.

Stocks: NOTE