Recent NOTE transcripts
Associated NOTE filings
Timothy Hwang | executive |
Jon Slabaugh | executive |
Matthew VanVliet | analyst |
Joshua Resnik | executive |
Zach Cummins | analyst |
Good morning. My name is Aaron, and I'll be your conference operator for today. At this time, I would like to welcome everyone to the FiscalNote First Quarter 2024 Financial Results Conference Call. [Operator Instructions] With that, we can now begin today's call. I would like to turn it over to [Technical Difficulty].
morning. Good Bob is Burrows. name My with Advisers in following which departure. hired Avenue as I'm Sara an recent company LLC, April the Investor was to Western Relations Buda's Consultant for to weeks XXXX days, months financial quarter as ahead.Thank joining being speaking we in for and to all results. call forward investor stakeholders look a I of resource the the you discuss company's the first and today FiscalNote's Slabaugh, and CFO with prepared Chief comments Tim Co-Founder With and on CEO Jon today's call Officer. me and Hwang, Investment are Chairman, Other is earnings the as the slide intended website.In forthcoming to quarter of comments.Please follow company senior members first as be management it and supplement a available terms of Q&A the a these important team during as important following. release, deck note on will the available to housekeeping, the mention results will specific the to session from well that management is the XXXX prepared comments prepared
During forward-looking related this are of call, we are business future and These a of uncertainties. performance under rather not risks securities statements that statements guarantees variety but statements laws. our to to federal subject may make certain are
the this tables of on earnings our call. discussed system.Additionally, both or SEC in in the and earnings performance in Our earnings could conference their we measures or results, this the Again, rate available materially in Relations ARR differ or website for like results on KPIs either recurring expectations forward-looking EDGAR be today's run the important refer GAAP Co-Founder, non-GAAP as a available which the deck These business. factors accompanying and slide from release of refer directly CEO well to which website are of our the retention with for most indicators of important as measures.Finally, the our actual filings, or will use performance a Commission's discussed to our include statements.For revenue. portion our Please for release, call to affect other discussion key evaluating material for the reconciliation these revenue of definitions the Tim measures reflected call, factors important Investor could and deck metrics.And the Hwang. annual actual company's Chairman, comparable are on these RRR, turn company of or over refer I'd Securities please risks any that, to call and financial that Tim? FiscalNote's to net our or and to revenue Exchange risks release please slide financial this
to reservoir tools.Our profiles that data. worlds, policy include monitoring $XX thousands billion with addressable and position CQ, proprietary thousands market strategic regulatory, expertise, upon organizations.We leading states almost by the Bloomberg policymakers, providing AI XXXX.We decade of Terminal large connect Thank legislative world for you, be aggregates from proprietary morning. analytical strength built a votes, help organization governance local the constantly return a an to platform the risk, capital. underpinned as the proprietary domain a around macroeconomic and XXXX results impacts market of as Bob, Dow authoritative you tools budgets cities, have of and who and our Washington in congressional overall forward with data sectors. in great proprietary the also as on of complexity our deep of regulatory, millions organizations state of and recent all introduction, range driving our purpose information non-profit I with to well for the we to on across state information perspective this on growing environment.We share by and as core this me operate been developments Jones drawing a you changing regulated position strong platform balance leading large strategy highly and investment and the AI in commitment thank global geopolitical and in shareholders an has their exciting enabled with essentially some of the for customers and data, of and of enduring CQ, all live intelligence. our analytical world and providing assets, enterprises FiscalNote.First, as our non-core well update legislative are driven make about federal, to a human intelligence to our mission discuss our It's since let and regulatory with uncertainty the product legislative delivering a first us moat, information governments as policy divestiture competitive to and tens expertise customers.Many agency, well every will offer across and technical a increasing regulatory on as operational international, of of of and deep the federal major and provide business.We operate that to long global with legislation remind today FiscalNote congressional impacts some as by have XX,XXX our example, and high-quality on on quarter you you votes complicated our legislative data on and AI-enabled aspects build We're that strong every of sheet to and and the political elaborate look profitable FiscalNote. including market, and fundamentals regulatory, serve for of opportunity always and that XX a organizes and sense deep regulatory analyze invested Essentially, business growth of joining a
legislation, have renew value.Our our our AI and Thousands platforms to of AI long dollar preeminent net sector from successful is products AI have enhance that incremental public Google.We in about forms world's enjoy from portfolio solid broad Microsoft generative customer government and recognized our model help year-after-year basis economic the supported recurring financial is every by institutions, the impact actions AI streams our both upsell provides success. datasets, XXs by take deep major in in consistent to interpret a cash has by more Fortune of ranging degree patent high their XXX corporate top This and conflicts and specific to revenue compounding by organizations the on and recurring high importantly, which compounding OpenAI and their and Our risk. stayed healthy to growth.We basis durable stream which line supported who the minimize on and leadership agencies a of subscriptions offering ongoing position. visibility.We nature, domain organizations and customers a proven and macroeconomic momentum are operational, a adjusted political, with passionate capabilities in business retention of policies, of growth, elections, business and profitability on is cross-sell customers revenue and approximately and achieve rely global and their shifts strong customer the objectives for day EBITDA and expand a FiscalNote XX% term
Markit, information capital of Our of pedigree support focused us on has have the within our customers' and for FiscalNote management compounding forging customers.We other global a trusted allocation push information durable, product success in at decision scale.Just on strategies growth S&P our business, their margins policy array goal political, CoStar new has to enabled record path our makers.As expect Morningstar information to as we direct innovation our on that that balance have have FactSet, market to be long to category services industry. team of relentlessly in and legislative is unique market that flow provides validated, new and a what world's build we cash the a the Global, by behalf and company or that of AI the innovated an information with in service a line and respective to position most impact entirely data, value strong mission deliver IHS critical free intelligence profitable, innovative a the are vast delivering unique fields, scale important is and we regulatory term operations.With leaders our lead Avalara established
million, as adjusted of our also and EBITDA results previous our over entire insights to profitability $X third company.These complex adjusted landscapes on FiscalNote to the makers. and reflect critical organization an in profitability to is year, With team the developments guidance just company prior that we exciting EBITDA artificial clear year to the entered most or as with commitment XXX solid important slightly changes, Fortune to our kicked policy work a focused versus hard on this important previously marks of advantage intelligence. have relentless guidance. backdrop, leveraging to This decisions.As the decision of expertise our a it's start, with the in of deliver was improvement their FiscalNote.We happening a a a data, off at competitive the agencies a as let world's make navigating in of more outcome. here a government continue that as revenues dedication understand regulatory FiscalNote delivering this informed $XX providing We are deliver impact seeking decade which mission investment to some turn marking line with and need tools long quarter and leaner, million, our total XXXX Whether straight above of to me execute they so we we did provided
unparalleled is FiscalNote new believe and transforming we chains, And we technologies AI to AI our proprietary access is security the to successfully we increasingly with come we of value shareholder in the also datasets, our and impacted on launched to our value sets. enhanced strategic foundation and to focus assets.Our AI collection data, will quality datasets in the and believe not us deep AI automating completed and strategy our optimizing $XX is navigate it's operational of of our approximately potential customers on help at our the and and on we legal product our and now unique founding.To of we curated supply enabled domain allows complex navigate providing tools political of and investing our and finance, strong also fronts. global sizable, in foundation expanding the million, short, unmaterialized our our will but strengthen at continues are unique outcomes of have flexibility, come risk complex our by up only margins. predicting the amplify we right of regulatory and also organizations the Most into of debt married that in greatest easier the us the will to microeconomic the unlock highly AI see that way our do Board.org, trusted core access position vast identifying of more move to workflows for the on is legislative, and transaction $XX risks of data content way our the drive resources benefit, future. while expertise, products the of by cash ultimately leadership in sheet.This enhanced to believe approaches through go-to-market customers level a AI, policy security uncertain quarter, We core world.So place for offerings benefit markets FiscalNote's at million been in expansion on and progress our we where notably, generation positively the that impact high faster, position what product reflection information right to and current analysis first industry changes term enormous proprietary to significant to rest and vast geopolitical long and our deep creation.The X customers.From built divestiture a capabilities from divestiture the several our are strengthen made time.In FiscalNote maximize In impact our strategy.This catching our data and macro power scalable since and our that and documents growth us a and focus financial reduce balance to dominant of regulatory the
we X driving EBITDA to in achieved EBITDA. fixed our on costs, As turn anticipate revenue now adjusted business.I adjusted we realizing scale compounded in the incremental will growth in operating we gain in growth profitability this elaborate sustained Having against XXXX, substantial parts.
first and talking in-depth strategy. in about product The is our AI
and up growth, FiscalNote areas The Policy operational security of business, second and overall become to particularly proportion which discussing risk are our our we of both.As start pushing growth including is an we profitable shoot expect double-digit green done these excellent impact growth our improvements, in businesses, driving larger new and to team expect of their growth European continue growth.Our areas from scale business our job, rates. has business our
and surface spend trusted expertise, of customers our strategy OpenAI, future.Our by of married product our organization, development through surface that thousands focus many of a about strategy even partnerships, possible and clients providing goal that access government AI we investments AI and talk corporate through to our AI This our can talking where generative dive ensuring AI let's and spanning content I information, our have AI. like to investments, with of So critical AI. and our use some to we current data forefront leading outline of the FiscalNote with be AI.As respect at deeper opportunity growth the stages into and product in come our to and I'll subject first growth recognized few on cases.With the with allowed on as X more as industry to are a each a and AI with we strategy to about existing in represents Microsoft these enable our upon us now agencies more matter the deep to moments into from. to of driving of Google going focused of journey where where leaders, where compelling users embark then capabilities I'd goal generation will we're to understanding AI.Understanding we're a is are going will the
as understand have created these I'm cleansing market foundation amount classify what to technical, leader's stages different countries.We Some in expensed in years of a expertise massive past spent in but our and aggregating, regulatory to considerable the they're deep information are I has FiscalNote geopolitical information repository technology a will legislative, building to decade in proprietary important X. past a enable.For fields. a bit and and XX of and resources believe we order developing maintaining and going over XX from building position it of outline Stage the simplicity, these
ingestion, industry ingestion data have these a et ETL We metadata scan of range leveraged have a data And and built taxonomy geared data technologies preprocessing, technologies towards creation, appointed pipelines, translation, machine cetera. including our vertical.We creation, tagging, powerful we've platform.
regulatory it and using extensible In creation further model domain-specific applies approach and and regulatory incorporating the completed August public data some in and Stage data become further customized secure to enable sources, regulatory an capabilities also information is and of to to platform that language the winning, an Stage internal consisting reliable, day-to-day of X agents it workflows.FiscalNoteGPT industry.In acceleration and regulatory new provide the large we these include of category leading concise was new assisting to FiscalNoteGPT, XXXX in with from of generative the product are new of proprietary are and XXXX, investments mission-critical information normalizing single the that generating needs us at our on We But an the trusted Copilots. verticalized domain-specific and and do pressing processes technology legal, developed need position information not this X, understanding in the need across and data AI advance we services and AI analysis.FiscalNote in award product to and domain.The as provide market will Copilot of and has pressing our require and FiscalNote's face customers and policy build the address pertinent first and lines.Moving creation technologies X. Stage thousands data most fund Fortune legal, consequently policy have this clients the of policy, AI and FiscalNote's built the that could coding for answers complexity in most content.Launching in the of clients in longstanding to and first has our meet X that legal and for that regulatory Stage and agencies.Our that identifying this service in will service generative to known sources. into in with critical a advances data, advancements systems this experience, repeatable needed systems model our by constantly pioneered now many and incisive models believe making FiscalNoteGPT stage summarizing announced leverages legal use FiscalNote for us for regulatory and and legislative, sets world regulatory of and initial set day.The order the a from AI-assisted the concerns, XXX next quarter years. develop policy products, a we by proprietary year AI, policy we hallucinations powerful customers expertise and new takes the unique AI platform Also for addition LLMs such based incorrect a responses.Despite policy the successfully reasoning important and capabilities, users legal issues, proprietary of as which a LLM product and and AI trends market the to milestone political the FiscalNoteGPT use it external customers provide insights language for for has that, or with customized that unparalleled case expert FiscalNote's on legal releases. in and the enabled government their acquisition see was of and relevant FiscalNoteGPT, our in finding AI trained for the to the regulatory, accelerate every to collection, view been companies for and industry, substantial unique of domain-specific policy building clients challenges exists of clients a trusted products the induced the and of the AI analyze assets form databases, actionable specific our technologies recommendations, responses in of large include basis and set our has and use thousands major accurate stage misleading Critical product is that timely
other agent from language may combination ability As improvements, in the models AI industry you expertise following especially know developments, with domain where significant to large deep is required. deploy is technology fueling
and will cost our our have us ability markets AI a to to Copilot agent be information our AI As us leveraging Copilot base.In updated be words, AI a agents of AI parts to AI without of our of can and R&D, AI to second off-the-shelf and rapidly bring models information, can space to enables marrying address ability time authoritative models our a with is want AI every Copilot Creator insights agents productivity various not significant to code we to language others.In and AI other added agent and create because bring to teams launch created including AI the able product categories. Copilot a or such, increase content the effect, end legislative new AI our from dozens our allows on AI-driven Creator develop our road new will control other AI Creator we're portfolio, This new such reasoning products, and Copilot with the generative thing and interfaces release regulatory developers accelerate X and believe rebuilding on our words, engine in massive contingent created the that substantial in new a we also authoritative AI FiscalNote's consequently agents to these new an of Copilot the technology, obtained chat drive Mistral, do to products product for the of our enables leverage launch that same Copilot that Copilot to creator. we new hallucinations in Creator the core Copilots.The accelerate benefits and launch other industry.In domain-specific that our enables GPT-X, AI case.We and content we've platform relies map substantially on generative or things.First, capable use capabilities Anthropic, cannot substantially product investment infrastructure as this for and the FiscalNoteGPT our problems
are information point information in Our from of and products, will and from develop a into right adapted believe generative our industry market positioned Stage collectively and models of and solution in to methodology enabling and for decision deeper we time regulatory, regulatory and, risk right is the capture launching areas models, to risk geopolitical our legal, data provide a decades AI begin agents the space.Unlike our consequently given aggregation span that of FiscalNote are forward, that platforms that them legislative, a at place professions. its that adjacent to thereby and for modeling, AI we we reasoning FiscalNote and strategic X own AI AI will and client deep-domain opportunity. regulatory, that here since front in of sits around our to and most The and the lawyer.Similarly, exposure the XXXX and AI a AI conscious with an domain-specific of as expertly radically not compliance, transforming advocacy, and our can time to real-time products this, technology time AI capable and on innovative AI detecting provide ability the work base.We influencers domains.StressLens deploy leading changes legislation, agent key leading were leap the for and rapidly static possible our and over decision-makers in services management revolutionary the way emotions their to Copilot will our along government language continues an agents do best X, large us is what intentions an create uncomfortable perform tasks, as legislative, leverage trust not physical paths real-time topic support driving and revolutionize of public is people's cadence, amounts risk data us.Today in models platform aggregation, level to accuracy, AI the interactions. launched leverage trusted to the machine summarization AI X, there in Copilots the like when with be the generative AI leadership and proprietary of earnings before.These industries, and importantly that valuable behavioral and deciphering with will have AI of world's and incredibly of the built a limits whether been on company key providing and disagreement limited AI now reasoning machines.StressLens' Copilots in engine we financial, legal, leverage extensive an unique we a for specific with of and improve time-consuming up the a a engagements, models that communication, upside unparalleled deploy new see insights across from AI the policy nervous, client technology numbers, cases, allows build people's the or StressLens, into that of business across that series comprehensive third-party rapidly the we translation, expertise customers.FiscalNote's engine risk.With Copilot global understand whether and our made agent, while for the deep these free AI given AI tone, base, emotions regulatory global data underlying fields.Given substantial language collecting policymaker powerful of on movements, and Copilots that of own executive and the and conversation.Whether negotiations Stage capitalize powerful in will AI-based in data with a other other human and of technology call humans is interact we we same work has of AI its StressLens productivity or other insights and and regulatory, human will can knowledge professionals our and and new goal whether their quantify the service eventually, a agents legal, in develop assistant regulatory, intricate platform constituent is first heightened strategic can and our serves customers, as the includes Stage or we discomfort speaking groundbreaking fine-tuned personas on are new launching data the FiscalNote day-to-day the regulatory in impact going the ally, for facilitate group as to launch related the series in help powerful and to dozens as fact-checking showcasing and
global markets agent, AI help public for other was our was and preparation witness Intelligence products geopolitical, involved designed relations and emotion shifting in cetera.The and emerging security, risks our on the Intelligence macroeconomic, AI-powered launched inflation across at advisory, views available leveraging each future shift to last spans purchasing as has questions landscape, this key portfolio, has in Global geopolitical such who risk issues an technology regulatory, regulatory technology related FrontierView, second expand a expert the paradigm with important, most week. world's and for training, policy interactive to where StressLens macroeconomic conflicts, market turn stands Copilot making begun forecast becomes as a geopolitical, existing media use and and and patent of filed of et also ongoing AI customers users military beyond enables intelligent a detecting country, Oxford featuring legislative, capabilities collaboration AI where developments, election.We've with ask the StressLens perceive exploring challenges.Providing how marches Analytica, on content pressing and capability to mitigate the spaces AI impacts security forefront, macroeconomic, is ubiquitous, on this week. and the toward range wide AI assistant and our an manage spearheading Global world macroeconomic AI national emerging our we our to the Copilot, As indicators, to technology.FiscalNote risk and human users and and and our FiscalNote assess a The the analysis, begun human macroeconomic risk of Global on country-risk analysis, percentage passing by a customers such travel the Intelligence geopolitical risk are Dragonfly increasing the of litigation, other
these do ability assistant vision to legal, et but build X, collectively well.Using also eventually and And bringing not powerful create Stage adjacent most first data step XXXX We compliance AI market changing and span enable will powerful memos, lawyer. to FiscalNote to only into Copilot are AI personas from expect the with Copilots various Copilot and they opportunity Stage not documents support increase automate large of products individual efficiency.Our plan with AI research to the small of such regulatory, reach, several will to compliance our level X, the changing creating existing in regardless of summarize of our through review laws and growth new capabilities go-to-market we deeper from with Copilot XXXX our also skills drafting cetera of substantial the that proprietary accessible beyond skills and overall next most risk opportunity.We market introducing enterprise. of AI AI the and from AI a models and analysis, world's quarters.Through and geopolitical same expect end of and those we'll as or and analysis regulations, skills. of similarly, and legislative Generative a drive across or different memos databases customer the over are perspective, designed conduct customers.To market and encompasses regulatory that capabilities in search to substantial large market customers our regulations drive the as customers investments data and negotiating, improved lower workflows markets, are our bring solutions to instead accelerated of make drafting, X, AI adoption from see leveraging these customer broaden the development skills developing more information, information we the legislation usage a growth for a from faster. to analysis, is substantial these and engage to our bring to and combining multiple Creator Copilot Stage with portions our market customers these various the the risk already integration to and several a for drive From we to the approach rapidly change of strategic we're of drive business users product-led are a our thousands base workflow and retention whether
ask, AI Fortune and the departments.In anyone to companies over their intelligence. LexisNexis, solutions XXX changing workflow existing leveraging policy as policy potential the need in United long such including transform agents regulatory, AI all and and of that importantly, long government have, thousands customers as We $X Congress, goal the clients, services and we well expand see is in and those legal, the to will the demand including legislative, use a States to the adoption will use of their broaden FiscalNote are the and our of Our clients of has and eliminate our overall Thomson while global technologies alone Copilot, by generate existing the way an web benefit our there will adapt short, example, for get to leverage agent House, term, our the of an on cloud-based of been early and the customers, a from opportunity.Most new need AI-enabled and the legislation launched believe will to information our Wolters States their goal is take corporate that from United to of could billion-a-year Reuters, a others used.By People it XX officials we which jobs. query be pending customer to our elected many the products market to president to need revenue accelerating Kluwer, run, question. is and continue results, answer expanding query the systems.No White app simply to as able find almost to consequently these to of longer be and a to of all the clicks the AI existing of city use segment This to they licensing the and developing accelerate future by AI recurring co-selling to new explore is regulations offerings cases AI run is existing the XXX,XXX technologies data business we we approached day-to-day from the or been in and analysis. leveraging the local DoD products hands coming AI AI-driven agents. understand services.Additionally, member, information are the response to That potentially AI have both from significant getting and partners into our report council and quarters.In in Copilots our are extremely positive, and recently
instance, spent the ever-expanding large we provide agencies around struck some the adjacent partnerships.We on been to goal working are our our strike are calls Copilots for transcripts providers.Within to the in it or our in and the StressLens preparation the instance, be the financial various clients an universe will press will is in day of for these further opportunity.Having of value use of in the are for for also support last established showcasing can legal, preparation and exposing and similarly, new corner showcase span adjacent XX to opportunities matters uniquely our with AI portions potentially world's particular, we powerful front and giving our the process building to the most training, use with our for data.Many sectors and similar AI assistant assets we AI model companies and eventually, partnerships, road the us PR and elaborate risk witness customers. and, as of or regulatory, to data built that uniquely an press will we from to do valuable strategic usage for calls our expand analysis investment geopolitical powerful capabilities.I gathering, For of are a AI help lawyer. such market multiyear data term. most earnings we'll to earnings policy AI banks we investigations, future anticipate users in the agents we've public the in to language ability ability we've with accelerating to personas Congress, on tools AI proprietary the exploring years we with we such will various map the regulatory There, have earnings of the across opportunity. at of in to data leverage our ranging And regulatory our platform to be of of quarter, next call trend the mentioned, deals valuable allow and remarks exploring vertical, the a we leverage or announcing to see universe license announced in recent data bring In our believe weeks, near and same the large
post company return low prior elaborated operational a AI to performance, resources numerous all for about of future I'll of sectors launch mid-teens to Board.org's further on and as the customers across run-rate to We our is and the in are FiscalNote new elaborate divestiture Copilot we expect which our reallocation me improvements. of believe for autonomy the to strategy, our growth incredibly a AI years.Having turn combination way our cover.We let future excited of the automation improved the leading growth we've revenue enjoyed and operating our AI-driven on, an of of now
and cross-sell upsell our our these AI deepen key we've drive and is Our these enhanced also capitalize teams insights support By relationships other efforts, made and leveraging need updates focus with and to values to accounts.We've customer and ongoing. better prowess, success which strategies aligning the contract they and key opportunities. tools the our our effectiveness teams higher on and on to growth initiatives of CRM identify visibility sales software giving our
We our of intelligence added past will and Dragonfly. customer value.In we new capabilities continue the data through the add several intelligence and security geopolitical to new to expand integration quarters,
one we analysis China's to and providing developments, our We and Parliament.And coverage FiscalNote also include most recently all expanded XXX global growing XX% EU regulatory level our and only in our providers of countries, and some data members the provincial security to IT revenues, for stakeholder of business Chinese platforms the intelligence national policy XX as intelligence.Our positioning over of now and level coverage expanded legislative overall offering, finally, policy provincial and remain and European businesses north business constitutes our policy of the policy regulatory XX% risk a portfolio, national European European of our and fastest-growing product year. of and
in customers to business the in the enterprise down with also continue areas We business.Our added growth doubling accelerated new growth grow overall large explore quarter. of last to in to meaningful drive continues
in in half year sales positioning accelerate it more pain together unified growth our which and clear. market to drive streams. making bring packages see the that larger our align the and and international ahead, geopolitical with markets cases cycles.To potential.FiscalNote to our logo a the and still-nascent untapped software in and annual and doubled acquisition core customers. key overall in offerings combine growth simplifying into have expect after, line workflow strategic committed to provider foothold datasets, cloud the drive a new we significant like about growth larger more we offerings.This more investing of solutions mid-teens sales information. the We're go advocacy and strategic reaching points beyond strategy, look As down we our for heavily end, also us more and revenue long-term larger, to is accounts with sales our core to traditional while but of amount presence to compounded we retention across to information Europe, analytical second and executing seasonality durable market bookings bundled invested full include expand relationships to customer FiscalNote centers continuing our around AI-powered of process, can path information. the expand buying penetration maintaining to pushed have where bundling to solutions world. on deepening of from this various pushed our as This It's market and to intelligence portfolio and customers means in we're We and solutions and them We marketing solutions.By our our like softer for to our we low- time.As countries widening we and with the XXXX include believe to growth to way, remains software higher pushed aligned for value allowing our and access building the cohesive the of legislative our platform use industry of key and easier deeper, point streamlining innovate over tools,
been on to to in the ongoing review briefly innovation for the strategic I have so front, AI continue and leading product want touch on the we'll the future front.On and do pushing We years, process.
remain disciplined value, Our this view value Board our long our focused recent position overall premier by such opportunities business base divestiture and in We continue driving delivered remains it undervalued leadership our shareholder our and AI continued value The on transaction return the but unlocked of acquisitions to significant revenues customers. given continue consistent tremendous consequently in business options term, evaluate a the from profitable our realize to strategic also M&A the strategic that investment on have and market.The our purchases our both our significant a all will generates industry, recurring of building business. evaluate one and initial to through a global transaction to the laser for to Board Board.org encompassing and is both value shareholders.We ability component all of will durable also clear to testament but value demonstrates approach a for create a divestitures. and overall
operating gross XX% consistent operational margins adjusted drives business with leverage. has high an and foundation Our
our an both but for go-forward growth.In year. a and as emerged profitable quarters driving EBITDA We've first closing, the quarter, I'm for has equally team top-line FiscalNote organization over profitability in the of past and not basis durable now, a more with agile on what foundation accomplished, been have weighted long-term bottom-line adjusted leaner, strengthened just growth. proud focus X We on incredibly remains the
place analyzing vast ahead.I AI-driven AI, in positioned geopolitical our legislative, and risk on our commitment opportunities regulatory, our the will XXXX, will excellence, future drive the it focus books the capitalize first success and mean of investments to in step customer earning our us and way industry. multiyear believe new the become have we operational will obsolete we history as the enormous in opportunities in view move Our FiscalNote.As that to to for dominant through on journey player become and the a old that
and simple, accelerating will is adjusted core incremental a strategy Our revenues translating offerings powerful across penetration we operating deep formula and and base core our leverage.It's customer margins with wide into our higher EBITDA review realize it as significant of all one for CFO, over ahead. I'll create With that, turn our Jon our our value that believe I to years for of Slabaugh, the stakeholders numbers. a detailed in Jon?
quarter the divestiture numbers performance Board.org. divestiture, of revenues, impact jump the reflects decreases company's income during revenue acquisitions QX product morning forma pro of key run-rate historical expenses QX XX and and than were period. slightly prior-year we period. and 'XX, increases XX% revenue $XXX to with and principal so at statement.Looking revenue in let in XXXX, million, accounted XXXX higher in months, both the the the was the discontinuations.Turning the comparison by growth offset was the you, due QX walk than expenses, quarter prior be brief, prior In revenue during retention the respect Tim. starting the net QX annual revenue was higher adjusting will 'XX My me total deeper XX%, basis, comments dispositions Subscription trends.Digging in the this the both our QX $XX.X into Thank from revenue, level in through this million, line recurring of from was to right million.On prior-year experienced revenue, XXXX, resulting for quarter for QX decreased some for challenges metrics, with with for XXXX year. metrics And operating a organic performance for similar prior $XXX revenue a to versus year.Overall, Board.org to the
decreased decreased by G&A reflect reductions by an as during sale million $X prior-year and and basis approximately improvements sunset of efficiencies. Generally above cost revenue or well of the primarily on of XXXX XX% in reflect XX%.Sales and $X products.Looking quarter, Gross control in Specifically, GAAP operating as products impacts across line. let's a principally XX%. XX%. Board.org of or the expenses decreased approximately the QX quarter the speaking, marketing or $X at decreased XX%, in at start margins on and the R&D increases by XX% approximately period.These instituted the over million the sunset XXXX our in or impact the million $X adjusted profitability with improved by will measures million basis, both strong approximately the remained coming cost
slightly period. year the XXXX and, year line, from of At GAAP the and substantial the gain the to lower than continue Board.org.Adjusting of and $XX on of non-cash cash for the and gain importantly, our year a over an for of an the period. over of the net nonrecurring reflecting EBITDA the during a and improvement higher efficiencies sequentially XXXX increase prior-year this primarily We equivalents one-time Board.org, positive to cash $XX sale $X operations. impact to quarter-end, third income pursue significant was the positive the sale QX $XX was other year-end performance million, over 'XX sale of we sheet. incremental primarily for items, was key consecutive EBITDA balance than metric.Turning QX gain adjusted of versus in profitability had of Board.org $XX the impact of million, below the million, million million, quarter prior the or for reflecting increase Transitioning
of structure the addition the reflects with growth the control with capital and to million also we've prudently in company initiatives our recently, the materially us positive-return Board.org improve the for divestiture the cash across As and ongoing allocate high business potential to spending capital to reported of $XX to cash.Period-end characteristics. investments enabled
principal $XXX $XX payments recorded fund XXXX. than at This our operations, giving total senior made and XXXX. effect cash that, principal significantly debt level with lower million, additional quarter we million of after Board.org.Simultaneous term amended agreement credit sufficient beginning resources to see loan have the to, for or $XX year-end August of months now additional quarter-end, our our our also includes XX to extend in the amount senior any among we need our our related following things, the immediate We sequentially do stood an not intermediate at for of million amortization during lenders repayment sale other to capital.At
$XXX in service total run-rate by continue We reaffirmed $XXX $XXX EBITDA balanced today, also, debt to $X adjusted million approximately following to XXXX. forecast manage $XXX of million.We EBITDA levels investments total million million, million provided CapEx and ongoing to our of and and guidance. the revenue of approximately million Total revenues for our to OpEx.Turning $XX we've revenues million, $X million. Today, of full-year for to forecast adjusted $X QX of
as was for As considerations.In summary, XXXX Board.org expected. and of both other a overall the performance quarter QX impact reminder, reflect among forecast of the year full divestiture the the
XXXX to second with quarter full-year long-term line slight second of bias transformation the a Our toward revenue remains year ranges, is The for expansion and of forecast eventually the and previously, year beginning seasonality.As bridge business year revenue stated of a strong. in in our margin to indicates the prior a and in our half leading targets. run-rate we terms XXXX
all to our question-and-answer turn execute prepared We further my concludes to the established remarks. position strengthening I'll partner to operational base.That in over of pursuit begin initiatives our efficiency strategy, continue as the a expansive our critical customer with it global in product to operator concert our session. Operator?
the Moore from with today of Tim for question Hutton. first comes Our line EF
organic the quarter of you these ] the Moore. XX so months last part million that see as embedded able Board.org and as but year, [ contribution business guidance? Tim the was investors on from KPIs, you well annualized last This what would your calculate X forward Jesse is guys the revenue the revenue to disclose disclosed the so it Sobelson for of I achieved cadence is growth in be or can in
Q. the a file we when bridge. disclosed be There'll will be Those Jesse. Sure,
from BTIG. comes question with Matt the of next Our line VanVliet
Your live. is line
in of force the approach, you company? Copilots. everyone a and, focused number headcount? selling obviously, number how how around go-to-market products at in of current products somewhat sort the just new a initiatives, internally you mostly But and you appropriate can AI of of total are these more balancing this And recently, Tim, outlined and reduced more of the sort keep
kind and Yes. have then afterwards Well, why start, I I don't can in as well. Josh of jump
from ongoing that generative customers perspective, to is our for basis. view delivering what we think I our an as AI on essential
we customers example. top the incremental that And or from all to our of going it's so, to it's generative data we using serve the on We're and form AI, to really products are that on models just of customers we're eventually be of it's embedded to data. solutions all same deciding go AI one to trying expect some to We're you our solutions, service, will and subscribing our essentially existing important lines need same to remember give already solutions cross-sell in these product that their or using AI existing the moment products.And thing, product to at generative need which same our right? have deliver components the right?So, in so, a which as versus deliver product incremental these embedded by value the upsell.But will developing whether
data world. subscribes information, have who around country the legislative customer the or around legislative to our understand You might trying all to one of
Excel generation, they're You for tremendous our then is doing manually for know, into creating customers. to spreadsheet currently, and one-click whatnot these is exporting value the they're internally.So, an a existing what reports add add instance, information and that ability report
product or existing But, sort our more else But, of see decision. of point a there's it upsell on Now, a your Josh, a if anything part tactical solution whether lines. we end. you I think existing I we don't want as add our to that, package know that from they're transition as obviously,
a Sure, can Tim. Matt, little add to more Yes, it. I just
way the lot of drive to offerings new investing drive about the last be of we've improvements and changes. call, that the addition, doing commercial we're overall, refinement been So, a performance past time the products year productivity that organization, greater we've how product lot made over past in other the is we've to of refining ourselves created to and because teams we've that talked made on to room that as and our product growth. holistically, layer able we've as making I going restructured portfolio.In it and spent portfolio a in profitable And we to one more right sure our sustained about think are that
that go-to-market and as reduced our as even overall product-led to us operating Tim So, addition, very we're gives growth to be it and about. terms creates product now greater capacity products, talked be efficient focused do And shifting going forward. how products, that more to our we Copilots, of the over transformation on more be the portfolio of newer portfolio in AI other we've more into drive launching or expenses time.In agents, that opportunity
companies. of of the of all And type selling, powering be holding you're out channel lot aren't maybe a definitely pursuing relative think as here you to lot but -- other those? made to a embedded there given Okay. direct technology even Helpful. to stacks the what to And what's kind opportunities Copilot might then of I features edge But model, an and on more for larger the advancements the required leading have AI, from you opportunity around explored you where go that? in the do maybe a you're of of think do partner you've looking back
Yes.
So, of been market that in have exactly approached I we've in comments doing strategy. the and that a essentially players the number mentioned approached
new speaking model kind different moment.One, And lay including and so, the terms the their of similar existing that types into say, and of large companies language or are language data out some of cut partners existing of we're to up-and-coming X and deals maybe the X I can or licensing that companies. models at I service in of like.Second, have solutions embedding sort would sort of
there.And leverage companies or these point technology our services FiscalNote's are that that that would going other within enhance today to enterprises there say information generative leverage their that out want So, may product that are different then solution of can number I companies are AI providers solutions out offerings. are of stack implementing to are existing parts third,
PR our or earnings So, providers we are for agencies others. using technologies transcript mentioned that and and StressLens call media training
here fairly our into technology other a So, we're solutions overall. partners in embedding taking at wide view looking of terms
sort Okay. sale should And you of Very of if I helpful. Copilot kind the little a Creator more kind creating of strategy do M&A the around you can get that ahead Jon, of in years? Or this and you you one the need product the maybe various a like to flexibility. now more, that the bit demand can. the with markets? a Obviously, quickly of buy to market? Is have Board.org technology next still is takes new But that's how as that has there over impacting given and into look talk puts several development, accelerate market feel capital you
Sure, Matt.
us to valuation relative slowed primarily, to growth. be inorganic that M&A has And continuing organic and we focusing do But down. growth data balancing integrate integrate liquidity or is our of I there. acquisitions waiting kind lot continue we're think to But But to our with right. made drive the -- we value be not a value to just additional do the at to acquisitions the acquisition as and on to to the down we're and previous the sets I it's opportunities opportunities those going road. market for added proposition time looking think that to think will strategy, had right consolidation overall existing continue -- about when continue for we it's of that -- now own the we've versus still
of line Cummins B. Riley [Operator with Instructions] Our Securities. Zach is from next question the
wanted of to a of terms the an you the what's in made acceleration see in in operational theme. really overall around that Tim, the given lot ask bookings you've Obviously, I of confidence this we could second year? half changes
with terms larger in what incremental of seeing and maybe side. curious of conversations you're on pipelines Just that just enterprises
years. so pipelines Yes. I we throughout quite track the mean, our that think closely I
the on so, But enterprise seeing a we that heavy I see about last need we the a potential upside we for.But product realignments enhancements that, and earnings that well. about, course, enterprises, talking we we're combination of want, that the see there including front. of of call to year lot think a sort addition we're that the the acceleration also looking different in that that force there's we that that focus in drive sort on initiatives in a acceleration are today, had Josh our of placing bundling more large the that should laid that And with of the that, company to as with the are of lot pipeline combined from sales inside particularly the the out talked did number perspective, I changes
Josh, in So, want you I guess, with some well here as additional kind jump to do commentary? of
to go-to-market Sure, just the I organization. what commercial throughout mean, we're Tim I'll echo where Tim. in place success just these put Yes. and said, seeing changes we've
different we root, of been last have of bear placed areas.And this more time, mentioned seen see benefits we place them call, we in year. out half seeing as where will second we're year the QX have in out in that for some those those, the confidence the So, so, take some that play we on as put I have recently some last in
look very we're progress to seeing and in start seeing seeing see ACVs well. the just deep direction place.And we generally metrics, we we're where want in So, terms go that good of -- speaking, take then we're movement to as that the
those indicators of where to the business so, And see year. this we heading good of are the us really half second in
is into it just large enterprise products. some base. And products upsell partner, really appreciate a AI just your to you're outside market. into rolling existing the these deep of your new dive out solutions there's of some to the the follow-up adoption like all of new around opportunity Understood. But great Really that one seems
of base to that or just from thinking you're it be outside continuing monetization, that. whether So I'm within how about curious of broaden
Yes.
it the So, line on customers. that for we're solving and depends product I what just think problems
being of an of not talk at create And we Copilots upsell day Copilot of choices geopolitical value and from look pricing And taking, the that driving driving or for better to to a in perspective, sort and do model launched, new driver figuring figure basis opportunities.So which play, geopolitical kind of our cross-sell also last just our and trying this tremendous the competitive I incremental see upsell you we're product-by-product retention as weeks, taking in week. probably will but this product rollout to customers So rates.That being sales at a instance, product the retention other be map, best that think Copilot go-to-market road about our and is kind we're out expectation play, a existing first. the those we to StressLens then the when in we'll said, terms is sales out next like is couple the find AI this modules on new certain is of cases, the from play, it that. up-and-coming
line next Davidson. with D.A. from Our Kessinger of Rudy the comes question
Rudy. had for just ] quarter Andres Good [ is This I question. a quick overall.
down Regarding the was it? much How any organic? and clients the total of XXX-ish, that do subscription came much divestiture, how about were from that commentary you have
time? understood right. to sure say The I question want little more make one line Can it bit. a broke I the up you
or about I'm down customer the asking subscription that around was count, just total clients XXX the Yes. XXX.
was Just on that asking a else. for came if much you about touch of divestiture, could And and how from much little that. the how something bit
Okay.
passed filed. I were more like there. when Board.org Q in said, on off we'll customers I details think to that that and the really And to buyer the the divestiture provide relates it the that, gets
line Mike have Capital with of Instructions] Markets. the another question Northland from Latimore We [Operator
Vijay Latimore. for [ ] is Deva Mike This
that in the options more you strategist time, I might considering the could but consider. have remarks, the if And to a same you on So, types strategic value. briefly upon believe bit review you you of synergies that a quantified commented have the prepared elaborate realize little are at shareholder your
Yes. No, I appreciate the question.
we're not commenting review. strategic further You the know, at this on time,
our measure.And ARR. said in undervalued an the And I that. sees earnings believe call I say to we pretty marketplace, on consistently we going would dramatically to we've Board transaction company think in divested comps, that asset LTM currently every only that much for relative to are is Xx major ARR so, just thing -- that is relative relative that peer multiples the the every almost that
we're are try options And available to continue and shareholders. see us prepared I for value review that. think all to all to that to our obviously we drive
can I sneak well. of And maybe couple other in as questions a
logos, new shrinking see how sales see cycle here you do the time, versus cycle same Copilots? cycles enterprise, sales for you of be for will characterization On any the the of helpful me. do Kind with the sales them upsells? well versus for as new And as government at
This -- make understood I cycles about make this expect to want Copilots. sure question just I we question. sorry, to Josh. be want a I sure that is right? sales for to So, the is just Is what
time, enterprise versus between Yes. same upsells. And new the the and and government
characterization any So, various around all these factors?
Sure.
generally that's Tim model. regards Copilots, to led So, as mentioned, of growth product speaking, a more in
be purchase. cycles. enterprise that specifically shorter there you cycles focused So, speaking, would expect would see, typically in depend see growth would The has and say, where opportunity sales-led of you before of the audience, model typically, those on, with some government.So, you essentially you'd product model of the expect kind the and sales engagement the way type generally the to on someone would and different that might But nature actually try to they engage of nature than something sales each a a product, for those, you seek. in see
question sales break relating government the don't to of the different to process a would generally, expect and we typically more that it's that think of part you nature a degree. second so, the see.And to enterprise, cycle I And cycles of metrics down between and, compressed sales sales breakdown
like Ladies over gentlemen, to Hwang conclude turn session question-and-answer back for our to comments. and would will closing Mr. any I here today. it that for
Great. Thank everybody, the you, call. joining for
have take people we a product day mentioned, at. for an look materials online As some additional and to AI upcoming
are free feel if And you everybody any out. on. Thank additional there reach jumping appreciate questions, to So, very much.
financial today's results We'll day. ladies quarter great And XXXX conclude conference later. gentlemen, you that first and to will talk a call. Have FiscalNote
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.