Fiscalnote Holdings, Inc. · OTC:NOTE
Fiscalnote — Q4 2023 Earnings Presentation
31 slides from Fiscalnote's earnings presentation, Mar 12, 2024
Slide 1: FiscalNote (NOTE) Investor Update: March 12, 2024
FiscalNote (NOTE) Investor Update: March 12, 2024 © 2024 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: FiscalNote Snapshot (as of December 31, 2023)
FiscalNote Snapshot (as of December 31, 2023) Compounding Growth, Strong Retention, High Gross Margins ~5,000 Customers 4, 5 $126M ARR 1 17% 60+ of the Fortune 100 Y/Y GAAP Revenue Are FiscalNote customers As of December 31, 2023 Growth % As of December 31, 2023 FY 2023 Adjusted 11% Quarterly Net 82
Slide 4: What We Do
WHAT WE DO Deliver a SaaS-based platform for critical political, legislative and regulatory data and insights 4
Slide 5: Who We Serve
Who We Serve Crucial technology and embedded workflows on the desks of the world’s decision makers 5
Slide 6: Blue Chip Diverse Client Base
Blue Chip Diverse Client Base Relied upon and recognized across major public and private sector customers Government Non-Profits Organizations Corporates & NGOs FINANCE ENERGY CONSUMER & TRANSPORT RETAIL EDUCATION BUSINESS HEALTHCARE TMT SERVICES 6 Note: Data as of December 31, 2023.
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 11
Slide 12: 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 13: 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 14: 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 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: Category Creator
Category Creator Crucial AI technology and embedded workflows on the desks of the world’s decision makers Sector – Specific Related M&A Legal and Policy Finance Transactions Info Services Rev Multiple at transaction: 10-17x Other related M&A Transactions EV/24 Rev EV/24 Rev Multiple*: 9.3x Multiple*
Slide 17: Divestiture of Board.org division and FY 2024 Outlook
Divestiture of Board.org division and FY 2024 Outlook © 2024 FiscalNote fiscalnote.com
Slide 18: FiscalNote 2023 Recap
FiscalNote 2023 Recap Launched new AI products (FiscalNote Risk Connector & Co-Pilots) A blend of cost and growth initiatives to position the Eliminated underperforming, Company for profitable growth unprofitable product lines Established partnerships with world-leading AI companies (OpenAI, Google,
Slide 19: Board.org Divestiture
Board.org Divestiture: Attractive ROI Radically Enhances FiscalNote Balance Sheet Board.org background: • A peer-to-peer executive community platform used by corporate executives responsible for marketing, operations, HR and other leadership positions • Acquired by FiscalNote in 2021 • Operated as a
Slide 20: Kicking off 2024: Positioning FiscalNote for Focused, Profitable Growth
Kicking off 2024: Positioning FiscalNote for Focused, Profitable Growth • Compounding ARR growth and ongoing Adjusted EBITDA profitability • Clear AI leadership drives enduring competitive advantage differentiated by FiscalNote’s proprietary data assets • Aligned and focused product strategy to acce
Slide 21: FY 2024 Outlook
FY 2024 Outlook ● GAAP Revenue of $123 to $127 million ● Total Run-Rate Revenue of $126 to $134 million1 ● Positive Adjusted EBITDA of $7 to $9 million2,3 Board.org contributed approximately $14 million of revenue and approximately $5 million(1) of Adjusted EBITDA in 2023. In addition to the divesti
Slide 22: Five-Year Goal $250M
2 2 Five-Year Goal $250M Long-term Profitability Profile • Compounding ARR growth Run Rate Revenue (M) (1) • 80%+ adjusted gross margin3 • 25%-30%+ Adjusted EBITDA margin3 • Strong Free Cash Flow (2) (2) Long-Term Goal (1) “Run Rate Revenue” or “RRR” is a key performance indicator (KPI). . (2) 2022
Slide 23: 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 24: Addendum
Addendum © 2024 FiscalNote fiscalnote.com
Slide 25: 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 26: FY 2023 Proforma for Board.org Divestiture and Sunset Revenue
FY 2023 Proforma for Board.org Divestiture and Sunset Revenue ● GAAP revenue of approximately $115 million • subscription revenue of approximately $105 million • non–subscription revenue of approximately $10 million ● Run-Rate Revenue of approximately $121 million1 ● Adjusted EBITDA of approximately
Slide 27: Q4 2023 Summary - Reconciliation to non-GAAP measures
Q4 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 December 31, Year Ended December 31,
Slide 28: Q4 2023 Summary - Reconciliation to non-GAAP measures
Q4 2023 Summary - Reconciliation to non-GAAP measures (a) Reflects deferred revenue fair value adjustments arising from the purchase price allocation in connection with the 2021 Acquisitions. EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin (a) Reflects the non-cash impact from the mark to market
Slide 29: 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 $1.14 $5.50 $7.50 $10.50 $12.50 $15.00 $20.00 $25.00 Shares held by Affiliates 43.99 43.99 43.99 43.99 43.99 43.99 43.99 43.99 Public Class A Shares
Slide 30: 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 31: Contact
Contact ir@fiscalnote.com 617-331-0955 © 2024 FiscalNote fiscalnote.com