FiscalNote (NOTE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $29.4M, down 13–14% year-over-year, mainly due to the divestiture of Board.org and discontinued products.

• Adjusted EBITDA for Q3 2024 was $3.4M (11.7–12% margin), up from $0.7M last year, marking the fifth consecutive quarter of positive adjusted EBITDA.

• Net loss for Q3 2024 was $14.9M, similar to the prior year.

• Leadership transition: Tim Hwang to become Executive Chairman, Josh Resnik to assume CEO role January 1, 2025.

• Ongoing product innovation, AI-enabled offerings, and divestiture of non-core assets, including Aicel Technologies.

Financial highlights

• Q3 2024 gross margin was 79% GAAP and 86% adjusted, both up from the prior year.

• Subscription revenue accounted for 93% of total revenue, with $27.2M in Q3 2024, down 9% year-over-year.

• Advisory, advertising, and other revenue was $2.2M, down 44% year-over-year.

• Cash and equivalents at quarter end were $33.4M; total debt was $142.2M–$174.2M, reflecting deleveraging.

• Operating expenses in Q3 2024 fell by 23–24% year-over-year.

Outlook and guidance

• Full-year 2024 adjusted EBITDA guidance raised to ~$9M (from ~$8M); revenue guidance revised to ~$120M (from ~$121M) due to divestitures.

• Q4 2024 guidance: $29M in revenue and $2.5M in adjusted EBITDA.

• Management expects continued deleveraging, product simplification, and improved customer retention into 2025.

• Slower client decision-making and renewal softness expected to impact revenue growth into 2025.

• Management is actively seeking additional capital sources.