Fiscalnote Holdings, Inc. · OTC:NOTE
Fiscalnote — FY2022 Earnings Presentation
28 slides from Fiscalnote's earnings presentation, Mar 28, 2023
Slide 1: FiscalNote (NOTE) Q4/FY 2022 Management Presentation
FiscalNote (NOTE) Q4/FY 2022 Management Presentation March 28, 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: FiscalNote Snapshot
FiscalNote Snapshot Compounding Growth, Strong Retention, ~5,000 Customers 5 High Gross Margins $113M ARR 1 37% 60+ of the Fortune 100 Y/Y GAAP Revenue Are FiscalNote customers As of December 31, 2022 Growth % 2022 Adjusted 14% Net Revenue 80% Gross Margin2 100% Retention1 Q4 2022 Y/Y Organic Q4 202
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 Crucial technology and embedded workflows on the desks of the world’s decision makers Other Sector – Legal and Policy Finance HR Specific Info Services EV/23 Rev EV/23 Rev EV/23 Rev Multiple: 8.9x Multiple: 6.1x Multiple: 6.9x 5 Note: Average EV/23 Revenue Multiple for the public en
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: Clear Value Proposition
Connecting policy-making participants to a Clear Value Proposition 360-degree view of critical information and data BUDGET ALLOCATION GOVERNMENT AGENCIES FiscalNote Secure government funding to support national Value security and engage in global diplomacy $695BN1 $64BN2 $63BN3 CORPORATES REVENUE Fi
Slide 8: FiscalNote Growth Opportunity Investment Highlights
FiscalNote Growth Opportunity 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 Relied upon and recognized across major public and private sector customers Government Finance Energy Consumer & Retail Transport Healthcare Education TMT Business Services 10 Note: Data as of March 2023. Figures and logos exclude products acquired in 2021.
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: 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 14: Building on our Track Record as a Prolific and Disciplined M&A Machine
Building on our Track Record as a 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 /
Slide 15: 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 MORE PRODUCTS Customer Growth Stories USAGE & WORKFLOWS UPSELL Multinational Biotech and Large Multinati
Slide 16: 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 Gerald Yao Tim Hwang Jon Slabaugh Josh Resnik Richard Co-Founder, Chief Strategy Public Company Co-Founder, Chairman Chief Financial Officer & Chief President & COO Henderson Officer, Global Head of & CEO
Slide 17: 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 Former General Counsel Of Yahoo, Linkedin, And Co-Founder
Slide 18: Q4 and FY 2022 Summary
Q4 and FY 2022 Summary © 2023 FiscalNote fiscalnote.com
Slide 19: FY 2022 Financial Summary
FY 2022 Financial Summary $136.0 - $141.0 $113.80 Total GAAP Adjusted Revenue ARR1 Gross Profit Gross Profit2 $82.90 $113.8M $113M $81.8M $92.8M (+37% y/y) (14% growth (72% gross (80% Adjusted Y/Y) margin) gross margin) (1) “Run-Rate Revenue,” “Annual Recurring Revenue” or “ARR” and “Net Revenue Ret
Slide 20: 4Q 2022 Financial Summary
4Q 2022 Financial Summary Total GAAP Adjusted Gross Profit Gross Profit1 Cash Revenue $31.4M $23.1M $25.6M $61M (+29% y/y) (73% gross (81% Adjusted Sufficient capital margin) gross margin) to support growth plans (1) Non-GAAP measure. Please see "Non-GAAP Financial Measures" for definitions and impo
Slide 21: FY 2023 Guidance
FY 2023 Guidance: FiscalNote Provided FY 2023 Guidance as follows: • GAAP revenue of $136 to $141 million, representing 20% to 24% year over year growth inclusive of the Company’s recent acquisition of Dragonfly Eye, Ltd. • Total run-rate revenue(1)(2) of $148 million to $155 million representing gr
Slide 22: 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 23: Addendum
Addendum © 2023 FiscalNote fiscalnote.com
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP 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 provide reconcil
Slide 25: 4Q 2022 Summary - Reconciliation to non-GAAP measures
4Q 2022 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: 3 months ended December 31 Years ended December 31 (in
Slide 26: 4Q 2022 Summary - Reconciliation to non-GAAP measures
4Q 2022 Summary - Reconciliation to non-GAAP measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin a) Reflects deferred revenue fair value adjustments arising from the purchase price allocation in connection with the 2021 Acquisitions. 3 months ended December 31 Years ended December 31 b) Ref
Slide 27: 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 $1.53 $5.50 $7.50 $10.50 $12.50 $15.00 $20.00 $25.00 Shares held by Affiliates 45.8 45.8 45.8 45.8 45.8 45.8 45.8 45.8 Public Class A Shares held by
Slide 28: 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