FiscalNote Holdings, Inc. (NYSE: NOTE) reported Q2 EPS of ($0.11), $0.01 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $34 million versus the consensus estimate of $34.61 million.

Financial Outlook

FiscalNote delivered on its expectation for Adjusted EBITDA profitability in the third quarter of 2023, one quarter earlier than previous guidance, and expects ongoing Adjusted EBITDA growth in the fourth quarter as the Company continues to deliver year-over-year revenue growth, maintain strong adjusted gross profit margins in the 80% range, and realize the benefits of its cost management actions.(6)

Guidance for the fourth quarter of 2023 is as follows:

GAAP revenue of $34 million to $35 million, representing 8% to 11% year-over-year growth.
Adjusted EBITDA(2)(6)of approximately $2.5 million for the quarter and an annualized Adjusted EBITDA of approximately $10 million exiting the year. This marks a year-on-year improvement of approximately $8 million in adjusted EBITDA profitability compared to Q4 2022 reflecting the benefits of the efficiency programs the Company implemented in 2023.

Guidance for full year 2023 is as follows:

GAAP revenue of $132 million to $133 million, representing 16% to 17% year-over-year growth.
Total run-rate revenue(1)(5) of $139 million to $141 million, representing growth of 10% to 11% over the prior year.
An adjusted EBITDA(2)(6) loss of approximately $8 million for the full year, within the range previously provided and marking an improvement of approximately $16 million or 67% year-over-year. FiscalNote expects adjusted EBITDA profitability moving forward and, over time, expects to achieve adjusted EBITDA and free cash flow margins in line with other information services companies long-term.

For earnings history and earnings-related data on FiscalNote Holdings, Inc. (NOTE) click here.