WASHINGTON - FiscalNote Holdings, Inc. (NYSE: NOTE), an AI-driven enterprise SaaS provider of policy and global intelligence, announced a significant change in its leadership structure set to take place in the coming year. Tim Hwang, co-founder and current CEO, will transition to the role of Executive Chairman on January 1, 2025, passing the chief executive responsibilities to Josh Resnik, the current President and COO.
Hwang, who has led the company since its inception in 2013, expressed confidence in Resnik's ability to steer FiscalNote into its next growth phase, highlighting his contributions to the company's product strategy and operational effectiveness. Hwang's new position as Executive Chairman will allow him to concentrate on strategic initiatives and maintain the continuity of the company's mission.
Resnik, in anticipation of his new role, emphasized his commitment to driving product focus, operational efficiency, and business simplification to enhance value for customers and shareholders. His appointment reflects the Board's confidence in his leadership and understanding of FiscalNote's operations and strategic priorities.
Under Hwang's leadership, FiscalNote has made significant strides, evolving from a Silicon Valley startup to a prominent player in the AI SaaS space, with a listing on the New York Stock Exchange. The company now serves over 4,000 customers globally, thanks to the innovative products launched under Hwang's direction.
Michael Callahan, FiscalNote's lead independent Board director, acknowledged Hwang's visionary leadership and the foundational role of the co-founders in establishing FiscalNote as a market leader. He also noted Resnik's instrumental role in driving the company's growth and operational model.
FiscalNote is known for combining data, technology, and insights to help customers navigate political and business risks. The company's portfolio includes notable brands such as CQ, Dragonfly, and Oxford Analytica, with a global presence across North America, Europe, Asia, and Australia.
The announcement of the leadership transition is based on a press release statement from FiscalNote, detailing the planned changes effective January 1, 2025.
In other recent news, FiscalNote's Q2 2024 results showcased its ability to maintain stable key performance metrics in a challenging macroeconomic climate. The AI platform reported total revenue of $29.2 million, with subscription revenue making up 93% of that figure. Despite a decrease in total revenue due to the divestiture of Board.org, the company achieved a positive adjusted EBITDA of $2 million, while reporting a GAAP net loss of $13 million.
FiscalNote's management is committed to profitability and margin improvement, with a full-year profitability forecast for adjusted EBITDA set at approximately $8 million. The company expects total revenue to be around $121 million and is focusing on customer engagement, retention, and revenue growth through product innovation.
Looking ahead, FiscalNote plans to improve bookings in the second half of the year and is reviewing strategic alternatives to maximize shareholder value. Despite the uncertain macro environment, the company remains confident in its ability to drive growth through product and operational enhancements.
InvestingPro Insights
As FiscalNote Holdings, Inc. (NYSE: NOTE) prepares for its leadership transition, investors should consider some key financial metrics and insights from InvestingPro that shed light on the company's current position and challenges ahead.
According to InvestingPro data, FiscalNote's market capitalization stands at $125.53 million USD, reflecting its position as a smaller player in the SaaS industry. The company's revenue for the last twelve months as of Q2 2024 was $129.63 million USD, with a modest revenue growth of 3.8% over the same period. However, it's worth noting that the company experienced a 10.95% decline in quarterly revenue in Q2 2024, which aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
Despite these challenges, FiscalNote boasts impressive gross profit margins of 72.28% for the last twelve months as of Q2 2024, which is highlighted as a strength in one of the InvestingPro Tips. This suggests that the company maintains strong pricing power for its AI-driven SaaS offerings.
However, investors should be aware that FiscalNote is currently operating at a loss, with an operating income of -$48.67 million USD for the last twelve months as of Q2 2024. This is reflected in the negative P/E ratio of -1.84 and aligns with another InvestingPro Tip stating that analysts do not anticipate the company will be profitable this year.
As the new leadership prepares to take the helm, they will need to address these financial challenges. InvestingPro offers 12 additional tips for FiscalNote, which could provide valuable insights for investors looking to understand the company's prospects better as it enters this new phase.
For a more comprehensive analysis and to access all 12 InvestingPro Tips for FiscalNote, investors can visit InvestingPro for detailed financial metrics and expert insights.
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