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FiscalNote Holdings (NOTE)
NYSE:NOTE
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FiscalNote Holdings
(NYSE:NOTE)
56Neutral
FiscalNote Holdings (NOTE) vs. S&P 500 (SPY)
Market Cap
$144.69M
Dividend YieldN/A
Average Volume (3M)4.09M
Price to Earnings (P/E)―
Beta (1Y)2.77
Revenue Growth-3.67%
EPS Growth74.17%
CountryUS
Employees680
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-0.25
Shares Outstanding136,402,000
10 Day Avg. Volume2,054,553
30 Day Avg. Volume4,090,440
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.16
Price to Cash Flow (P/CF)-12.30
P/FCF Ratio200.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.38Price Target Upside338.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
FiscalNote Holdings Business Overview & Revenue Model
Company DescriptionDuddell Street Acquisition Corp is a blank check company.
How the Company Makes MoneyFiscalNote makes money primarily through a subscription-based revenue model. Customers, which include corporations, government agencies, and non-profit organizations, pay recurring fees to access FiscalNote's platforms and services. The company offers various subscription tiers, allowing clients to choose the level of access and features that best suit their needs. Additionally, FiscalNote generates revenue from consulting services, where it provides tailored insights and strategic guidance based on its data analytics capabilities. Partnerships with other technology firms and data providers may also contribute to its earnings by enhancing the value and reach of its offerings.
FiscalNote Holdings Financial Statement Overview
Summary
FiscalNote Holdings demonstrates strong revenue growth and a decent gross profit margin, reflecting potential in its core operations. However, the consistent lack of profitability, high leverage, and negative cash flows suggest financial instability. The company needs to focus on cost management and cash flow improvements to ensure long-term sustainability.Income Statement
FiscalNote Holdings shows consistent revenue growth over the years, but profitability remains a challenge. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 67.5%, yet the company struggles with negative net profit and EBIT margins due to high operational costs. Revenue growth is evident, but the inability to turn this into net profits is a significant concern.45
Neutral
Balance Sheet
The company has improved its equity position over recent periods, but the balance sheet is still leveraged with a high debt-to-equity ratio of 1.83 in the TTM (Trailing-Twelve-Months). The equity ratio of 29.2% suggests a moderate reliance on equity financing, which is a positive sign; however, the balance sheet stability is hindered by substantial liabilities.40
Negative
Cash Flow
Cash flow analysis reveals some troubling signs, with negative operating cash flow and free cash flow in the TTM (Trailing-Twelve-Months). The operating cash flow to net income ratio shows inconsistency, and the free cash flow growth rate is negative. These indicators point to ongoing cash flow management issues and highlight the need for improved operational efficiency.32
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 125.06M | 132.65M | 113.77M | 82.91M | 65.16M | 65.87M | Gross Profit |
| 84.39M | 74.53M | 81.83M | 61.11M | 52.54M | 52.68M | EBIT |
| -41.82M | -97.74M | -85.79M | -50.88M | -26.53M | -29.13M | EBITDA |
| 33.28M | -56.58M | -98.37M | -36.13M | -8.62M | -17.64M | Net Income Common Stockholders |
| -27.85M | -115.46M | -218.26M | -109.42M | -51.19M | -33.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 44.23M | 23.59M | 60.39M | 32.17M | 44.23M | 6.28M | Total Assets |
| 280.11M | 370.56M | 433.16M | 378.49M | 280.11M | 243.12M | Total Debt |
| 215.22M | 251.64M | 197.87M | 333.27M | 215.22M | 170.79M | Net Debt |
| 170.99M | 235.19M | 137.48M | 301.10M | 170.99M | 164.51M | Total Liabilities |
| 272.37M | 327.10M | 288.47M | 411.33M | 272.37M | 225.48M | Stockholders Equity |
| 7.73M | 43.46M | 144.69M | -32.83M | 7.73M | 17.64M |
| Cash Flow | Free Cash Flow | ||||
| -20.45M | -43.43M | -83.99M | -42.62M | -22.66M | -19.89M | Operating Cash Flow |
| -7.15M | -35.49M | -72.63M | -37.05M | -17.17M | -16.90M | Investing Cash Flow |
| 82.50M | -20.32M | -10.24M | -49.20M | -5.49M | -3.15M | Financing Cash Flow |
| -66.06M | 12.08M | 111.53M | 74.31M | 60.68M | 23.59M |
FiscalNote Holdings Technical Analysis
Negative
1.00
Price Trends
1.32
Negative
1.15
Negative
1.27
Negative
Market Momentum
-0.10
Positive
37.95
Neutral
13.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTE, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.32, and below the 200-day MA of 1.27, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 13.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTE.
FiscalNote Holdings Risk Analysis
FiscalNote Holdings disclosed 60 risk factors in its most recent earnings report. FiscalNote Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FiscalNote Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.91B | 29.21 | 20.45% | 1.40% | 9.06% | 6.10% | |
72 Outperform | $147.74B | 39.55 | 11.44% | 0.76% | 13.68% | 49.90% | |
70 Outperform | $12.18B | 33.14 | 25.11% | 0.59% | 11.60% | 161.17% | |
69 Neutral | $16.06B | 55.92 | 6.91% | 0.53% | 9.20% | ― | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
56 Neutral | $144.69M | ― | -30.59% | ― | -3.67% | 74.17% |
* Technology Sector Average
Performance Comparison
NOTE
FiscalNote Holdings
1.04
-0.64
-38.10%
MKTX
Marketaxess Holdings
206.95
-15.01
-6.76%
SPGI
S&P Global
478.26
53.42
12.57%
MORN
Morningstar
287.53
-19.52
-6.36%
TRU
TransUnion
83.32
4.64
5.90%
FiscalNote Holdings Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 13.64% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant positive financial achievements in terms of profitability and cost management, despite challenges in revenue decline due to divestitures. The leadership transition aims to drive further growth and focus on core strengths, signaling optimism for future performance.Highlights
Positive Adjusted EBITDA Growth
FiscalNote achieved a positive adjusted EBITDA of $3.4 million in Q3 2024, marking the fifth consecutive quarter of positive adjusted EBITDA, with an upward revision for the full year 2024 to approximately $9 million.
Successful Cost Reduction Initiatives
Total operating expenses in Q3 2024 decreased by over $11 million or 24% compared to the prior year, reflecting the impact of cost-saving initiatives and divestitures.
Strong Gross Margins
Gross margins for Q3 2024 were 79% on a GAAP basis and 86% on an adjusted basis, showing improvement over the prior year period.
Leadership Transition
Timothy Hwang announced his transition to Executive Chair, with Joshua Resnik taking over as CEO, signaling a strategic shift towards new growth opportunities.
Lowlights
Decline in Total Revenue
Total revenue for Q3 2024 was $29.4 million, lower than the prior year due primarily to the divestiture of Board.org, with full-year revenue forecast reduced to $120 million from $121 million.
Slight Decrease in Net Revenue Retention
Net revenue retention was 99% as of Q3 2024, slightly lower than the prior year.
Increased Net Loss
GAAP net loss for Q3 2024 was approximately $14.9 million, slightly higher than the prior year period.
Company Guidance
During the FiscalNote Q3 2024 earnings call, several key financial metrics and future guidance were highlighted. The company reported total revenue for the quarter at $29.4 million, with subscription revenue accounting for 93% of this total. Key performance metrics included a run rate revenue of $119 million and an annual recurring revenue (ARR) of $109 million. The net revenue retention stood at 99%, slightly lower than the previous year. FiscalNote achieved a gross margin of 79% on a GAAP basis, and 86% on an adjusted basis, reflecting a focus on profitability, which led to an upward revision of the full-year 2024 adjusted EBITDA forecast to $9 million. The guidance for Q4 2024 includes anticipated total revenues of approximately $29 million and adjusted EBITDA of around $2.5 million. These figures are part of the company's broader strategy to streamline operations, enhance product offerings, and optimize its capital structure for sustainable growth.FiscalNote Holdings Corporate Events
Business Operations and Strategy
FiscalNote Holdings to Present at Needham Growth Conference
Positive
Jan 15, 2025
FiscalNote Holdings announced that they will present at the Needham & Co. 27th Annual Growth Conference on January 15, 2025, in New York City. This event signifies an opportunity for the company to engage with investors and stakeholders, potentially impacting its market visibility and stakeholder engagement positively.
Executive/Board ChangesBusiness Operations and Strategy
FiscalNote Holdings Amends Incentive Plan and Awards CFO
Positive
Jan 3, 2025
FiscalNote Holdings, Inc. has amended its 2022 Long-Term Incentive Plan to increase the number of shares authorized for issuance and adjust the ‘evergreen’ provision. This amendment, approved by stockholders holding 52% of voting power, signifies an enhancement in the company’s equity strategy, potentially impacting stakeholders and aligning with market dynamics. Additionally, the company granted $1 million in restricted stock units to its CFO, Jon Slabaugh, which will vest over time, indicating a strategic move to retain key executive talent.
Executive/Board ChangesBusiness Operations and Strategy
FiscalNote Holdings Announces Board Member Retirement
Neutral
Dec 19, 2024
Conrad Yiu, a Board member of FiscalNote Holdings, announced his retirement effective December 31, 2024, to focus on his business interests in Australia. His departure is not due to disagreements with the company, and the Board will reduce to nine members following his exit, aligning with FiscalNote’s streamlined structure after recent divestitures.
Delistings and Listing ChangesRegulatory Filings and Compliance
FiscalNote Holdings Faces NYSE Delisting Notice Challenge
Negative
Nov 29, 2024
FiscalNote Holdings, Inc. has received a notice from the NYSE, indicating its non-compliance with the continued listing standard due to its stock price falling below $1.00 over a 30-day period. The company has six months to rectify this situation and is exploring strategies to meet the requirements, while continuing its operations and investor engagement without any immediate impact on its business or stock listing.
Executive/Board ChangesBusiness Operations and Strategy
FiscalNote Holdings Announces Leadership Transition for 2025
Positive
Nov 15, 2024
FiscalNote Holdings, Inc. is undergoing a leadership transition as Tim Hwang steps into the role of Executive Chairman, and Josh Resnik, the current President and COO, will become CEO, effective January 1, 2025. This shift aims to drive the next phase of growth by leveraging Resnik’s extensive experience in product strategy and operational efficiency. Under Hwang’s leadership, FiscalNote has transformed from a startup to a leading AI-driven enterprise, and his new role will focus on strategic initiatives and advancing the company’s mission.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.