WASHINGTON - FiscalNote Holdings, a leading provider of AI-driven enterprise software for government and corporate customers, has reported a significant uptick in its financial performance for the third quarter. The company's revenue grew by 17% to $34 million, with subscription revenues seeing a 15% increase. This growth has propelled the company to achieve Adjusted EBITDA profitability ahead of schedule, boasting a non-GAAP adjusted gross profit of $28.4 million. However, FiscalNote also recorded a GAAP net loss of $14.5 million during the same period.
The company's operational metrics paint a promising picture, with run-rate revenue reaching $138 million, marking a 14% rise, and organic run-rate growth climbing to $129 million at a rate of 7%. The Annual Recurring Revenue (ARR) has similarly increased by 14% to stand at $123 million. The Net Revenue Retention (NRR) rate remains stable around the 100% mark.
In the past quarter, FiscalNote has rolled out several strategic initiatives that have been instrumental in driving growth:
- The launch of the Risk Connector, designed to help organizations navigate regulatory risk.
- The introduction of the AI Co-Pilot Program aimed at enhancing decision-making processes.
- Enhancements to both the EUIT and FiscalNoteGPT platforms to improve user experience and functionality.
In addition to these product developments, FiscalNote's Board's Special Committee is currently considering a proposal from the CEO to take the company private.
Looking ahead, FiscalNote has provided forecasts for the fourth quarter that include GAAP revenues estimated between $34-35 million and an Adjusted EBITDA of approximately $2.5 million. The annual outlook anticipates GAAP revenues ranging from $132-133 million with an adjusted EBITDA shortfall near $8 million.
The company's balance sheet remains strong with cash and equivalents totaling $24.4 million and available debt capacity standing at approximately $94 million. This positions FiscalNote solidly for both ongoing operations and future investments as it navigates the next phase of its growth trajectory.
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