Fiscalnote Holdings, Inc. · OTC:NOTE
Fiscalnote — Q3 2023 Earnings Presentation
33 slides from Fiscalnote's earnings presentation, Nov 14, 2023
Slide 1: FiscalNote (NOTE) Overview
FiscalNote (NOTE) Overview Q3 2023 © 2023 FiscalNote fiscalnote.com
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Certain statements herein may be considered forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or FiscalNote’s future financial or operating performance. Statements regarding
Slide 3: What We Do
WHAT WE DO Deliver a SaaS-based platform for critical political, legislative and regulatory data and insights 3
Slide 4: Who We Serve
Who We Serve Crucial technology and embedded workflows on the desks of the world’s decision makers 4
Slide 5: Clear Value Proposition
Clear Value How our Proposition: solutions work together: The journey of a cocoa bean Helping clients manage regulatory, geopolitical and macroeconomic complexity 2. The cocoa bean has arrived in Belgium and is 3. Cocoa bean is now being refined and packaged cocoa powder and heading for the US ALERT
Slide 6: Why It Matters
“ Broadly speaking, I think, we as a sector need to do a better job clarifying with policymakers that, Why It Matters in order to invest in innovation…we need a pricing environment that rewards innovation, particularly “ Political instability, changes to the regulatory environment or taxation, inter
Slide 7: FiscalNote Snapshot
FiscalNote Snapshot Compounding Growth, Strong Retention, ~5,000 Customers 5 High Gross Margins $123M ARR 1 17% 60+ of the Fortune 100 Y/Y GAAP Revenue Are FiscalNote customers As of September 30, 2023 Growth % Adjusted 14% Net Revenue 83% Gross Margin2 100% Retention1 Q3 2023 Y/Y ARR Growth % Q3 20
Slide 8: Category Creator
Category Creator Crucial AI technology and embedded workflows on the desks of the world’s decision makers Sector – Specific Recent related M&A Legal and Policy Finance Transactions Info Services Rev Multiple at transaction: 10-17x Other Recent related M&A Transactions EV/24 Rev EV/24 Rev Multiple*:
Slide 9: Large and Expanding Market Opportunity
Large and Expanding Market Opportunity Enterprise Info Solutions TAM: $314BN1 Market Tailwinds • Proliferation of regulatory complexity • Lack of systems to track, assess and report • Demand for workflow efficiency and automation • Increasing use of data and information in decision-making • Need for
Slide 10: Blue Chip Diverse Client Base
Blue Chip Diverse Client Base Relied upon and recognized across major public and private sector customers Government Non-Profits Agencies Corporates & NGOs FINANCE ENERGY CONSUMER & TRANSPORT RETAIL EDUCATION BUSINESS HEALTHCARE TMT SERVICES 10 Note: Data as of November 13, 2023.
Slide 11: The FiscalNote Solution
The FiscalNote Solution Data Workflow Analytics Research Unrivaled Information Embedded Workflows AI-Powered Differentiated & & Global to Manage Actionable Mission-Critical Need-to-Know Policies Regulatory Risk Intelligence Commentary on Policy Combining Data, Analytics & Workflow to Drive Actionabl
Slide 12: Proprietary Ingestion and Processing Infrastructure with AI at the Core
Proprietary Ingestion and Processing Infrastructure with AI at the Core Sources Ingestion Processing Modular collection Merge 50k+ sources framework (text, audio, video) Government regulation, legislation, Smart Scrapers Normalize and policy data (local, state, federal) Data across countries, news,
Slide 13: FiscalNote AI Leadership
FiscalNote AI Leadership Recognition from the world’s most prominent AI organizations Keynote speaker, Sissie Hsiao, Vice President and General Manager, Google Assistant and Bard at Google’s Annual I/O Conference 13
Slide 14: Leveraging Core Technology for Organic Product Growth
Leveraging Core Technology for Organic Product Growth New Adjacent Market Regulated Sectors of the Future Opportunities FDA Approval Advocacy ESG Geopolitical Tracking Autonomous US-China Risk Gig Economy Driving Relations Research Issues Government Management Affairs Central Bank Gig Policy Economy
Slide 15: Building on our Track Record of Disciplined, Accretive M&A
Building on our Track Record of Disciplined, Accretive M&A Proven Strategies Key Winning Factors Criteria Playbook for acquisition and integration Deeply embedded customers Track record of value creation through Transaction structure Large market share acquisition of datasets and cross / upselling A
Slide 16: Fueling our Land and Expand Strategy Via Cross & Upsell
Fueling our “Land and Expand” Strategy Via Cross & Upsell Relied upon and recognized across major public and private sector customers Upselling Potential Enabled by User and Product-Based Pricing Customer Growth Stories ADDITIONAL DATA SETS USAGE & WORKFLOWS ISSUES UPSELL GEOGRAPHIES PRODUCTS Large
Slide 17: Enterprise Customer Journey: Case Study
Enterprise Customer Journey: Case Study EXPANSION JOURNEY Large Energy Company Initial user of congressional data 2016 FiscalNote Value: 2019 FiscalNote sales team introduced our core • Centralize efforts of disparate teams across government, corporate, legislative FiscalNote product and regulatory
Slide 18: Enterprise Customer Journey: Case Study
Enterprise Customer Journey: Case Study EXPANSION JOURNEY Global eCommerce Company Initial user of EU data 2019 FiscalNote Value: 2021 FiscalNote selected to modernize the • Modernized process for tracking global policy customer’s legal process for tracking global • A more proactive policy engagemen
Slide 19: Enterprise Customer Journey: Case Study
Enterprise Customer Journey: Case Study EXPANSION JOURNEY Global Technology Company Small user of FiscalNote congressional 2021 information FiscalNote Value: 2022 FiscalNote selected by public policy team to • Centralized, integrated processes for tracking global policy implement a global policy mon
Slide 20: Managed by a Visionary, Founder-led Team with Strong Track Record
Managed by a Visionary, Founder-led Team with Strong Track Record Operating Businesses at Scale TIM HWANG JON SLABAUGH JOSH RESNIK RICHARD HENDERSON GERALD YAO Co-Founder, Chief Strategy Co-Founder, Chairman Chief Financial Officer & Chief President & COO Chief Revenue Officer Officer, Global Head o
Slide 21: Experienced Leadership Guiding the Organization at the Board-level
Experienced Leadership Guiding the Organization at the Board-level GERALD YAO TIM HWANG Co-Founder, Chief Strategy Officer, & Global Head of ESG, Co-Founder, Chairman & Chief Executive Officer, FiscalNote FiscalNote MIKE CALLAHAN KEY COMPTON General Counsel of Rivian; former General Counsel of Yahoo
Slide 22: 2023 Operational & Financial Summary
2023 Operational & Financial Summary © 2023 FiscalNote fiscalnote.com
Slide 23: 3Q 2023 Financial Summary
3Q 2023 Financial Summary Total GAAP Adjusted Gross Profit Gross Profit1 Cash2 Revenue $34.0M $23.6M $28.4M $24.5M (+17% y/y) (69% gross (83% adjusted margin) gross margin) (1) Non-GAAP measure. Please see "Non-GAAP Financial Measures" for definitions and important disclosures regarding these financ
Slide 24: FiscalNote Achievements Year to Date
FiscalNote Achievements Launched new AI products Year to Date (RiskConnector and FiscalNote GPT) A blend of cost and growth initiatives Eliminated underperforming, to position the Company for profitable unprofitable product lines growth in 2024 and beyond Established partnerships with world-leading
Slide 25: FY 2023 Guidance
FY 2023 Guidance: • GAAP revenue of $132 to $133 million, representing 16% to 17% year over year growth inclusive of the Company’s recent acquisition of Dragonfly Eye, Ltd. • Total run-rate revenue(1)(2) of $139 million to $141 million representing growth of 10% to 11% over the prior year inclusive
Slide 26: Summary Why FiscalNote
Large, growing market with tailwinds from increasing Summary regulatory and geopolitical complexities Diverse, blue chip customer base providing a durable Why FiscalNote asset for upsells and cross-sells AI and data-driven workflows differentiate FiscalNote and help customers turn insights into acti
Slide 27: Addendum
Addendum © 2023 FiscalNote fiscalnote.com
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures In addition to financial measures prepared in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our performance. Where applicable, we provid
Slide 29: Q3 2023 Summary - Reconciliation to non-GAAP measures
Q3 2023 Summary - Reconciliation to non-GAAP measures Adjusted Revenues The following table presents our calculation of Adjusted Revenues for the periods presented, and a reconciliation of this measure to our GAAP revenues for the same periods: Three Months Ended September 30, Six Months Ended June
Slide 30: Q3 2023 Summary - Reconciliation to non-GAAP measures
Q3 2023 Summary - Reconciliation to non-GAAP measures (a) Reflects deferred revenue fair value adjustments arising from the EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin purchase price allocation in connection with the 2021 Acquisitions. (a) Reflects the non-cash impact from the mark to market
Slide 31: Equity Capital - Fully Diluted Shares
Equity Capital - Fully Diluted Shares Represents shares and dilutive securities outstanding at various price per share levels, in millions Common Stock $2.08 $5.50 $7.50 $10.50 $12.50 $15.00 $20.00 $25.00 Shares held by Affiliates 43.54 43.54 43.54 43.54 43.54 43.54 43.54 43.54 Public Class A Shares
Slide 32: Glossary
Glossary AI Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions ARR Annual Recurring Revenue (ARR) is the value of the contracted recurring revenue components of term subscriptions normalized to a on
Slide 33: Contact
Contact Sara Buda VP, Investor Relations FiscalNote (NOTE) sara.buda@fiscalnote.com 617-331-0955 © 2023 FiscalNote fiscalnote.com