FiscalNote Holdings Inc. (NOTE)NOTE

FiscalNote Holdings Inc. (FNT): A Comprehensive Overview

Company Profile:

History and Background:

• Founded in 2013, FiscalNote Holdings Inc. (FNT) is a leading global technology provider of legal and compliance solutions for government relations, risk management, and global intelligence.
• The company emerged from a merger between FiscalNote and Lobbying.com in 2020.
• Headquartered in Washington, D.C., FNT operates in over 100 countries and serves over 5,000 customers, including Fortune 500 companies, government agencies, and non-profit organizations.

Core Business Areas:

• Government Relations: FNT's government relations platform helps clients track legislation, monitor regulatory changes, and engage with policymakers.
• Compliance & Risk Management: The company provides solutions for risk assessment, sanctions screening, and compliance training.
• Global Intelligence: FNT offers real-time insights on political, economic, and social trends impacting global businesses.

Leadership Team and Corporate Structure:

• Timothy Hoeft: Chief Executive Officer (CEO)
• David Banmiller: Chief Financial Officer (CFO)
• Tina McCorkindale: Chief Marketing Officer (CMO)
• James Blumstein: Executive Vice President, Global Head of Government Relations
• FNT operates under a Board of Directors chaired by Charles McCrary.

Top Products and Market Share:

• FiscalNote Parliament: Legislative tracking and analysis platform used by a majority of Fortune 500 companies and over 80% of the U.S. Congress.
• FiscalNote Connect: Software for managing government relations activities and engaging with policymakers.
• DueDil: Compliance management solution for supply chain risk assessment and sanctions screening.
• Oxford Analytica: Global intelligence platform providing insights on political, economic, and social trends.

Total Addressable Market:

• The global market for government relations software is estimated to be worth $5 billion, with a projected growth rate of 8% CAGR through 2026.

Financial Performance:

• Revenue: FNT reported $133.4 million in revenue for the fiscal year 2023, representing a 15% year-over-year increase.
• Net Income: The company reported a net loss of $22.6 million for the fiscal year 2023.
• Profit Margins: Gross profit margin stood at 62.3% in 2023, while the operating margin was negative at -16.5%.
• Earnings per Share (EPS): FNT had a loss per share of $0.30 in 2023.
• Cash Flow and Balance Sheet: FNT has a solid cash position with over $150 million in cash and equivalents as of June 30, 2023. The company also has minimal debt.

Dividends and Shareholder Returns:

• FNT does not currently pay dividends.
• Total shareholder returns for the past year were -32.4%, while the 5-year return was 30.7%.

Growth Trajectory:

• FNT has experienced rapid organic and inorganic growth in recent years.
• The company's future growth is expected to be driven by continued expansion in its core markets, new product introductions, and strategic acquisitions.
• Recent product launches include FiscalNote Compliance Cloud and FiscalNote ESG, while strategic initiatives include partnerships with organizations like SAP and Ernst & Young.

Market Dynamics:

• The government relations and compliance technology market is experiencing strong growth, driven by increasing regulatory complexity and globalization.
• FNT is well-positioned in this market with its comprehensive suite of solutions and strong customer base.

Competitors:

• Key competitors include Bloomberg Government (BGOV), Cision (CISN), and FiscalNote's spin-off, DueDil (DUE).
• FNT has a leading market share in the government relations software space, but its market share in the broader compliance market is smaller.

Challenges and Opportunities:

• Challenges: Competition in the government relations and compliance technology market is intense. FNT also faces challenges in integrating acquisitions and managing organic growth.
• Opportunities: FNT has significant opportunities to expand its international presence and develop new products that address emerging compliance needs.

Recent Acquisitions:

• 2021: FNT acquired Oxford Analytica, a global intelligence firm, for $50 million.
• 2022: FNT acquired DueDil, a supply chain risk management and sanctions screening provider, for $270 million.
• 2023: FNT acquired Apperio, a regulatory compliance platform, for $22.5 million.

AI-Based Fundamental Rating:

• Based on an AI-driven analysis, FNT receives a rating of 6.5 out of 10.
• This rating considers FNT's strong market position, impressive growth trajectory, and solid financial health. However, the company's lack of profitability and intense competition are factors that contribute to a lower rating.

Sources and Disclaimers:

• This overview is based on information from FNT's website, SEC filings, and industry reports.
• This information should not be considered investment advice.

Conclusion:

FNT is a leading provider of government relations and compliance technology solutions. The company is well-positioned for future growth given its strong market position, product offerings, and strategic acquisitions. However, it faces challenges from competition and needs to continue investing in product development and customer acquisition to achieve its full potential.