FiscalNote (NOTE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $29.2 million, down 10.9%–11% year-over-year, mainly due to the Board.org divestiture and market headwinds.

• Adjusted EBITDA was $1.8 million, marking the fourth consecutive quarter of positive adjusted EBITDA and a trailing four-quarter total of $7 million.

• Net loss for Q2 2024 was $12.8 million, a significant improvement from $31.0 million in Q2 2023, aided by cost reductions.

• The company continues to invest in AI-driven product innovation and strategic partnerships to drive future growth and retention.

• The Board is actively reviewing strategic alternatives to maximize shareholder value.

Financial highlights

• Q2 2024 gross profit was $22.4 million (77% margin); adjusted gross profit was $24.9 million (85% margin), both up year-over-year.

• Subscription revenue accounted for 93% of total revenue, falling 8% year-over-year but up 3% excluding Board.org.

• Annual Recurring Revenue (ARR) at Q2 2024 was $109 million; run-rate revenue was $121 million.

• Net Revenue Retention (NRR) remained stable at 98% for Q2 2024.

• Cash and cash equivalents at quarter end were $38.4 million; total debt was $172 million, down sequentially.

Outlook and guidance

• Full-year 2024 revenue guidance was lowered to approximately $121 million due to higher churn and macroeconomic headwinds.

• Full-year adjusted EBITDA guidance was raised to approximately $8 million, reflecting continued operational efficiencies.

• Q3 2024 guidance: total revenue of ~$29 million and adjusted EBITDA of ~$2 million.

• Revenue growth is expected to accelerate in 2025 as product enhancements and AI-driven offerings improve retention and engagement.