Tim Hwang, Chairman, CEO, and Director of FiscalNote Holdings, Inc. (NYSE:NOTE), recently sold 46,255 shares of the company's Class A common stock, totaling approximately $38,618. The shares were sold at an average price of $0.8349 per share. This transaction was part of a sell-to-cover arrangement to satisfy tax obligations related to the vesting of restricted stock units. Following the sale, Hwang retains direct ownership of 2,425,612 shares and indirect ownership through a trust, as disclosed in the SEC filing.
In other recent news, FiscalNote, the AI platform specializing in regulatory and policy intelligence, has reported resilient Q2 2024 financial results amid challenging macroeconomic conditions. The company's total revenue for the quarter was $29.2 million, with subscription revenue accounting for 93% of that figure. Despite the divestiture of Board.org, which led to a decrease in total revenue, FiscalNote's subscription revenue remained robust.
The company reported a GAAP net loss of $13 million but achieved a positive adjusted EBITDA of $2 million. FiscalNote's management is focusing on customer engagement, retention, and revenue growth through product innovation, with the recent launch of StressLens and Copilot for Global Intelligence.
The full-year profitability forecast for adjusted EBITDA is approximately $8 million, with total revenue expected to be around $121 million. The company's guidance for Q3 2024 is set at approximately $29 million in total revenues and $2 million in adjusted EBITDA. These recent developments highlight FiscalNote's commitment to profitability, margin improvement, and shareholder value.
InvestingPro Insights
To provide additional context to Tim Hwang's recent stock sale, let's examine some key financial metrics and insights from InvestingPro for FiscalNote Holdings, Inc. (NYSE:NOTE).
As of the latest data, FiscalNote's market capitalization stands at $123.16 million, reflecting its current valuation in the market. The company's revenue for the last twelve months as of Q2 2024 was $129.63 million, with a modest revenue growth of 3.8% over the same period.
One of the standout metrics is FiscalNote's impressive gross profit margin of 72.28% for the last twelve months as of Q2 2024. This aligns with an InvestingPro Tip highlighting the company's "impressive gross profit margins," suggesting efficient cost management in its core operations.
However, investors should note that FiscalNote is currently operating at a loss, with an operating income margin of -37.55% for the same period. This is reflected in another InvestingPro Tip, which indicates that analysts do not anticipate the company will be profitable this year.
The stock's recent performance has been challenging, with a one-month price total return of -28.93% and a one-year return of -49.96%. An InvestingPro Tip points out that the stock has "taken a big hit over the last week," which may be relevant to the timing of Hwang's stock sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for FiscalNote, providing a deeper understanding of the company's financial health and market position.
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