Fiscalnote Holdings, Inc. · OTC:NOTE
Fiscalnote — Q3 2022 Earnings Presentation
26 slides from Fiscalnote's earnings presentation, December 2022
Slide 1: Management Presentation Q3 2022
Management Presentation Q3 2022 Fiscal ole
Slide 2: Disclaimer
Disclaimer Forward Looking Statements Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, statements with respect to (i) FiscalNote’s projected operational performance, including relativ
Slide 3: FiscalNote Snapshot
FiscalNote Snapshot Compounding Growth, Strong Retention, High Gross Margins 5,000+ Customers 34% Y/Y growth $108M ARR 1 GAAP revenue growth % Worldwide As of September 30 2022 Q3 2022 50 of the Fortune 100 80% Adj. Gross Margin 2 $78M cash Are FiscalNote customers Sufficiently capitalized to suppor
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: Category Creator
Category Creator Legal and Policy Finance HR Sales Crucial technology and embedded workflows on the desks of the world’s decision makers 5
Slide 6: Why It Matters
Why It Matters Boards and CEOs Face Increasing Global Regulations Regulatory Pressure “…I don’t know if this is the end-all “…People still want regulation, “…our business may be impacted by “…legal ambiguity on the status of but clearly regulation relief security amid tech competition… the adoption
Slide 7: Clear Value Proposition
Clear Value Proposition Government Agencies Corporates Non-Profits Navigate increasingly complex regulatory Secure government funding to support national landscape on key issues such as ESG, data Advocating to elected officials to ensure security and engage in global diplomacy privacy and anti-trust
Slide 8: Investment Highlights
Investment Highlights Large, Growing AI and Data-Driven Prolific Market Opportunity Workflow M&A Powerhouse 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 Government Finance Energy Consumer & Retail Transport Healthcare Education TMT Business Services Relied upon and recognized across major public and private sector customers 10 Note: Data as of July 2022. Figures and logos exclude products acquired in 2021.
Slide 11: The FiscalNote Solution
The FiscalNote Solution $6.4TN 500k+ 200k+ US Federal elected US bills Govt. officials introduced spending1 in the US2 annually3 American retailers claim tariffs on Chinese goods 1,300+ 250+ €173BN hurt business adopted Acts EU national EU budget in during pandemic Exports from Ireland to Great in 2
Slide 12: AI and Data-Driven Workflow
AI and Data-Driven Workflow Workflow Tools to Take Proprietary Data Action, Measure, & Report Patented1 AI-Enabled Core Ingestion & Processing AI-Driven Network Effects Better Experience Individualized Policy Automated Global Legislation Social with More Usage Alerting Monitoring Reporting Media Col
Slide 13: Proprietary Technology Stack
Proprietary Technology Stack FiscalNote’s Proprietary Technology… …Leading to Superior Outcomes for Customers Powerful ingestion Connect Data Augment Workflows engine with query Structured, standardized, Cross the silos between Integrate AI into existing suggestion and expansion and automated indust
Slide 14: Sifting Through the Chaos
Sifting Through the Chaos Collaborative capabilities and easy User-Friendly Dashboards access to workflows and data Searching, reporting, and alerting from unique Comprehensive Data global data and proprietary content sources Proprietary regulatory analysis and accuracy on Predictive Analytics likel
Slide 15: 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 Cryptocurrency Gig Economy Regulatory Driving Relations Research Monitoring Issues Government Management Af
Slide 16: Prolific and Disciplined M&A Machine
Prolific and Disciplined M&A Machine 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 Alignment of interests
Slide 17: Land and Expand Strategy Fueled by Cross & Upsell
“Land and Expand” Strategy Fueled by Cross & Upsell Upselling Potential Enabled by User and Product-Based Pricing Customer Growth Stories MORE PRODUCTS USAGE & WORKFLOWS UPSELL Multinational Biotech and Global Cloud Pharmaceutical Company Service Provider ~50K – 100K+ 36x 16x ACV DATA & CONTENT ~20
Slide 18: Why FiscalNote
Why FiscalNote 1 Large, growing market with tailwinds from increasing regulatory and geopolitical complexities 2 Diverse, blue chip customer base providing a durable asset for upsells and cross-sells 3 AI and data-driven workflows differentiate FiscalNote and help customers turn insights into action
Slide 19: KPI's
Q3 2022 Management KPI’s Fiscal \ o°e
Slide 20: 3Q 2022 Management KPIs Summary
3Q 2022 Management KPIs Summary Run Rate Revenue1 ($M) Run-rate Annual Recurring Net Revenue Revenue 1 Revenue (ARR) 1 Retention (NRR) $121M $108M 99% (+14% y/y) (+14% y/y) (consistent) (1) “Run-Rate Revenue,” “Annual Recurring Revenue” or “ARR” and “Net Revenue Retention”, are key performance indic
Slide 21: Q3 2022 GAAP Results
Q3 2022 GAAP | Results Fiscal \ o°e
Slide 22: 3Q 2022 Financial Summary
3Q 2022 Financial Summary ($M) Total GAAP Adjusted Gross Revenue Profit1 Cash $29.1M $23.3M $78M (+34% y/y) (80% Adjusted Sufficient capital to gross margin) support growth plans (1) Non-GAAP measure. Please see "Non-GAAP Financial Measures" for definitions and important disclosures regarding these
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Measures In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our
Slide 24: 3Q 2022 Summary - Reconciliation to non-GAAP measures
3Q 2022 Summary - Reconciliation to non-GAAP measures (1) Non-GAAP measure. Please see "Non-GAAP Financial Measures" for definitions and important disclosures regarding these financial measures, including reconciliations to the most directly comparable GAAP measure. 24
Slide 25: 3Q 2022 Summary - Reconciliation to non-GAAP measures
3Q 2022 Summary - Reconciliation to non-GAAP measures (1) Non-GAAP measure. Please see "Non-GAAP Financial Measures" for definitions and important disclosures regarding these financial measures, including reconciliations to the most directly comparable GAAP measure. 25
Slide 26: 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 t