Fiscalnote Holdings, Inc. · OTC:NOTE
Fiscalnote — Q2 2023 Earnings Presentation
32 slides from Fiscalnote's earnings presentation, Aug 9, 2023
Slide 1: FiscalNote (NOTE) Management Presentation Q2 2023
FiscalNote (NOTE) Management Presentation Q2 2023
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: Clear Value Proposition
Clear Value Proposition Crucial technology and embedded workflows on the desks of the world’s decision makers 4
Slide 5: 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 6: FiscalNote Snapshot
FiscalNote Snapshot Compounding Growth, Strong Retention, ~5,000 Customers 5 High Gross Margins $120M ARR 1 21% 60+ of the Fortune 100 Y/Y GAAP Revenue Are FiscalNote customers As of June 30, 2023 Growth % Adjusted 16% Net Revenue 80% Gross Margin2 98% Retention1 Q2 2023 Y/Y ARR Growth % Q2 2023 Fas
Slide 7: 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 HR Transactions Info Services Rev Multiple at transaction: 10-17x Other Recent related M&A Transactions EV/23 Rev EV/23 Rev EV/23 Re
Slide 8: FiscalNote Growth Opportunity Investment Highlights
FiscalNote Growth Opportunity Investment Highlights Large, Growing AI and Data-Driven Disciplined Market Opportunity Workflow M&A Diverse Blue Chip Multiple Avenues Customer Base of Organic Growth 8
Slide 9: Large and Expanding Market Opportunity
Large and Expanding Market Opportunity Enterprise Info Solutions TAM: $314BN1 Clear 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 • Ne
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 August 7, 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 13
Slide 14: Leveraging Core Technology for Organic Product Growth
Leveraging Core Technology for Organic Product Growth New Adjacent Market Opportunities Regulated Sectors of the Future FDA Approval Advocacy ESG Tracking Geopolitical Risk Cryptocurrency Autonomous US-China Gig Economy Research Regulatory Driving Relations Monitoring Issues Government Management Af
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 ISSUES USAGE & WORKFLOWS GEOGRAPHIES UPSELL PRODUCTS Multin
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 Gerald Yao Public Company Co-Founder, Chairman Chief Financial Officer & Chief President & COO Henderson Co-Founder, Chief Strategy & CEO Investment Officer Chie
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 Co-Fo
Slide 22: Q2 2023 Summary FY 2023 Guidance
Q2 2023 Summary FY 2023 Guidance © 2023 FiscalNote fiscalnote.com
Slide 23: 2Q 2023 Financial Summary
2Q 2023 Financial Summary Total GAAP Adjusted Gross Profit Gross Profit1 Cash Revenue $32.8M $23.4M $26.4M $38.1M (+21% y/y) (71% gross (80% adjusted Sufficient capital margin) gross margin) to support growth plans (1) Non-GAAP measure. Please see "Non-GAAP Financial Measures" for definitions and im
Slide 24: FY 2023 Guidance
FY 2023 Guidance: • GAAP revenue of $136 to $138 million, representing 20% to 21% year over year growth inclusive of the Company’s recent acquisition of Dragonfly Eye, Ltd. • Total run-rate revenue(1)(2) of $143 million to $150 million representing growth of 13% to 18% over the prior year inclusive
Slide 25: 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 int
Slide 26: Addendum
Addendum © 2023 FiscalNote fiscalnote.com
Slide 27: 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 28: Q2 2023 Summary - Reconciliation to non-GAAP measures
Q2 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 June 30, Six Months Ended June 30, (
Slide 29: Q2 2023 Summary - Reconciliation to non-GAAP measures
Q2 2023 Summary - Reconciliation to non-GAAP measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin (a) Reflects deferred revenue fair value adjustments arising from the Three Months Ended June 30, Six Months Ended June 30, purchase price allocation in connection with the 2021 Acquisitions. (b
Slide 30: 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 $3.62 $5.50 $7.50 $10.50 $12.50 $15.00 $20.00 $25.00 Shares held by Affiliates 46.64 46.64 46.64 46.64 46.64 46.64 46.64 46.64 Public Class A Shares
Slide 31: 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 32: Contact
Contact Sara Buda VP, Investor Relations FiscalNote (NOTE) sara.buda@fiscalnote.com 617-331-0955 © 2023 FiscalNote fiscalnote.com