Fiscalnote Holdings, Inc. · OTC:NOTE
Fiscalnote — 19th Annual Needham Technology, Media & Consumer Conference (May 2024)
36 slides from Fiscalnote's conference presentation, May 14, 2024
Slide 1: FiscalNote, Inc. – Corporate Overview
FiscalNote, Inc. – Corporate Overview Tim Hwang, Chairman & CEO 19th Annual Needham Technology, Media & Consumer Conference May 14, 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 March 31, 2024)
FiscalNote Snapshot (as of March 31, 2024) Compounding Growth, Strong Retention, High Gross Margins ~4,700 Customers 4 $110M ARR 1 $32M 50+ of the Fortune 100 Total Revenue Are FiscalNote customers As of March 31, 2024 Q1 2024 As of March 31, 2024 Adjusted $122M Quarterly Net 85% Gross Margin2 96% R
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 March 31, 2024.
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: Q1 2024 Financials
Q1 2024 Financials © 2024 FiscalNote fiscalnote.com
Slide 18: Q1 2024 Financial Summary
Q1 2024 Financial Summary FINANCIAL HIGHLIGHTS Total Gross Net Adjusted Adjusted Revenues Profit Income Gross Profit1 EBITDA1 Cash2 $32.1M $24.9M $50.6M $27.3M $1.2M $43.6M (+2% YoY) (77% gross (85% adjusted (4% adjusted margin) gross margin) EBITDA margin) (1) Non-GAAP measure. Please see "Non-GAAP
Slide 19: Q1 2024 Financial Summary
Q1 2024 Financial Summary KEY PERFORMANCE INDICATORS1 Annual Run-Rate Recurring Net Revenue Revenue Revenue (RRR) (ARR) Retention $122M $110M 96% (1) “Run-Rate Revenue,” “Annual Recurring Revenue,” and “Net Retention Revenue” are key performance indicators (KPIs). See “Key Performance Indicators” fo
Slide 20: Forecast
Forecast Full Year 2024 Metric Forecast as of May 9, 2024 Vs. Prior Guidance Provided on March 12, 2024 Total Revenue $123M to $127M UNCHANGED Run-Rate Revenue1 $126M to $134M UNCHANGED Adjusted EBITDA2,3 $7M to $9M UNCHANGED Q2 2024 Metric Initial Range as of May 9, 2024 Total Revenue ~ $29M Adjust
Slide 21: Five-Year Goal $250M
2 1 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) (4) Long-Term Goal (1) “Run Rate Revenue” or “RRR” is a key performance indicator (KPI). . (2) 2
Slide 22: AI Product Strategy
AI Product Strategy Building the most powerful legal, regulatory, and geopolitical AI assistant and eventually the world’s most powerful AI lawyer © 2024 FiscalNote fiscalnote.com
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: Accelerating Our AI Products to Drive Growth
Accelerating Our AI Products to Drive Growth Exploring licensing opportunities to broaden impact Data and AI Agent Licensing Launched AI Agents and Global Intelligence Legislative Copilot Future Copilots Copilots blending AI with StressLens authoritative information Copilot (Beta) and Agents Partner
Slide 25: Constellation of Skills
Constellation of Skills Building a powerful legal, regulatory, and geopolitical AI assistant, powered by Generative AI Policy Impact Assessment Document Q&A Contract Review & Analysis Geopolitical Risk Assessment Regulatory Analysis Compliance Monitoring Communication Drafting Legislative Analysis I
Slide 26: Why FiscalNote Can Win
Why FiscalNote Can Win Over a decade of building a unique global dataset and AI capabilities AI and Workflow Expertise: FiscalNote is already the leading provider of AI-powered software for people to understand policy, legislation, and regulations. We have been investing in AI since 2013 with deep e
Slide 27: FiscalNote's AI Master Plan
FiscalNote’s AI Master Plan Building the future of AI solutions for law and strategic risk 1. Build the Data Foundation: Aggregate, clean, and structure a massive repository of legislative, regulatory, and geopolitical information 2. Develop and Launch AI Solutions: Create AI Copilots and Agents tha
Slide 28: Key Takeaways
Key Takeaways FiscalNote already a leading provider of AI-powered sector-specific, 1 information, and analytics for the legal, regulatory, and policy industry Invested the last 10 years to create a deep reservoir of technical 2 expertise, world-class team, proprietary data and analytical tools Launc
Slide 29: Q&A Session
Q&A Session © 2024 FiscalNote fiscalnote.com
Slide 30: Addendum
Addendum © 2024 FiscalNote fiscalnote.com
Slide 31: 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 32: Q1 2024 - Reconciliation to non-GAAP measures
Q1 2024 - Reconciliation to non-GAAP measures Adjusted Gross Profit and Adjusted Gross Profit Margin The following table presents our calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin for the periods presented Three Months Ended March 31, ($ in thousands) 2024 2023 Total Revenue
Slide 33: Q1 2024 - Reconciliation to non-GAAP measures
Q1 2024 - Reconciliation to non-GAAP measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin Three Months Ended March 31, (a) Reflects the gain on disposal from the sale of Board.org on March 11, 2024. ($ in thousands) 2024 2023 (a) Reflects the non-cash impact from the mark to market adjustmen
Slide 34: 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 $1.33 $5.50 $7.50 $10.50 $12.50 $15.00 $20.00 $25.00 Shares held by Affiliates 44.1 44.1 44.1 44.1 44.1 44.1 44.1 44.1 Public Class A Shares held by
Slide 35: 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 36: Contact
Contact ir@fiscalnote.com © 2024 FiscalNote fiscalnote.com
FiscalNote Holdings — 19th Annual Needham Technology, Media & Consumer Conference (May 2024) on 6ix