FiscalNote (NOTE) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Business overview and customer base

• Provides a SaaS platform for navigating legislation, regulations, and court cases across 80 countries, serving over 4,000 customers including half of the Fortune 100, government agencies, and major political organizations.

• Customer segments: 25% government agencies (e.g., DOD, FDA), 50% large corporates (e.g., Nestlé, Microsoft), 20% political organizations (e.g., National Association of Realtors, AARP).

• Platform is used globally by ministries, military organizations, and corporations to monitor regulatory and political changes in real time.

Financial performance and outlook

• Expects $120–121 million in GAAP revenue for 2024, with $109 million recurring revenue and 98% net dollar retention.

• Achieved over $100 million in recurring revenue, 85%+ adjusted gross margins, and 98% retention rates.

• Q2 2024 marked the fourth consecutive quarter of positive adjusted EBITDA; expects continued EBITDA growth.

• First half of 2024: $61.5 million GAAP revenue, $52 million adjusted gross profit, $3 million adjusted EBITDA.

• Well-capitalized with nearly $40 million in cash and over 600 employees worldwide.

Technology and AI strategy

• Invested in AI for 11 years, using it for data collection, translation, and analysis of legal documents from 80+ markets.

• Built proprietary legal language model (FiscalNote GPT) for real-time search and analysis; integrated with OpenAI, Microsoft, and Google platforms.

• Launched AI Copilots and live integrations with ChatGPT, Google Gemini, and Microsoft Bing for legislative and regulatory updates.

• Holds a dozen patents in legal AI, with more pending.