FiscalNote (NYSE: NOTE), a leader in policy and global intelligence insights, has made a significant strategic move by divesting its Board.org platform for $103 million, a transaction that underscores the company's focus on its core expertise. The sale to Executive Platforms, which includes $95 million in cash, is part of FiscalNote's broader strategy to streamline its operations and concentrate on its policy, regulatory, and geopolitical intelligence services. This divestment, valued at 7x sales, is a pivotal step in the company's efforts to deleverage its capital structure and invest in AI-enabled intelligence solutions.
The company's financial performance for the fourth quarter of 2023 further illustrates its growth trajectory. FiscalNote reported a 9% increase in revenue, reaching $34.3 million, with its proprietary Security Intelligence and Analysis Service (SIAS) subscription platform being a key driver. The company achieved a gross profit of $28.3 million, boasting a non-GAAP gross margin of 83%. Notably, FiscalNote's adjusted EBITDA exceeded guidance, hitting $3 million, which represents a 157% increase year-over-year.
For the full year 2023, FiscalNote's revenue grew by 17% to $132.6 million, with subscription revenue, accounting for 90% of the total, increasing by 18%. The company also made significant strides in improving its financial health, reducing its adjusted EBITDA loss to $7.5 million from $24.5 million in 2022. These financial achievements reflect FiscalNote's commitment to enhancing profitability and operational efficiency.
As FiscalNote continues to evolve, its dedication to leveraging AI and technology to deliver actionable insights remains unwavering. The strategic review and subsequent divestment of Board.org are indicative of the company's proactive approach to optimizing its portfolio for sustainable growth in the competitive policy and global intelligence sectors. For more information on FiscalNote's services and solutions, visit https://www.fiscalnote.com.
