Stock surge of FiscalNote, reaching a maximum increase of 45.1% within the week.
FiscalNote, a software-as-a-service (SaaS) provider specialising in political and regulatory intelligence, has seen a significant increase in its stock price following the release of its fourth-quarter and year-end earnings.
The company's stock price jumped by 45.1% for the week, as of Friday at 2:50 p.m. EDT. This surge was partly due to the 45% increase in share price that the earnings accounted for. In fact, the stock had been up as much as 55% during the week.
FiscalNote has had a pretty good couple of weeks, with a significant increase in its stock price. The company's revenue for the quarter was $31.4 million, a 29% increase year over year. For the full year, this figure jumped to $114 million, a 37% increase.
The company's net loss for the quarter was approximately $42 million, an increase from about $21 million a year ago. However, for the full year, the net loss was $218 million, an increase from a net loss of $109 million the previous year. Despite this, the adjusted EBITDA loss for the full year was $24.4 million, which represents a 71% year-over-year improvement.
FiscalNote's outlook for fiscal 2023 calls for 20% to 24% year-over-year revenue growth and a net adjusted EBITDA loss of $8 million to $6 million. The company has reaffirmed 2023 guidance, aiming for $94 to $100 million in revenue and $10 to $12 million in adjusted EBITDA, reflecting its ongoing focus on growth and profitability. Analyst consensus also supports this outlook, highlighting FiscalNote’s positive trajectory and strong buy ratings.
In addition to its strong financial performance, FiscalNote made headlines last week when it was selected by OpenAI, which runs the ChatGPT platform, as one of its partners. As a partner, FiscalNote will allow OpenAI to use its data and content on the ChatGPT platform.
FiscalNote has approximately 5,000 organizations as clients worldwide, making it a strong and growing player in a critical niche with large institutional clients and a low overhead business model, with predictable subscription-based revenue. The company also made an acquisition of Dragonfly Eye, a U.K.-based provider of geopolitical data and security intelligence, earlier in 2023.
On Friday, FiscalNote was trading at about $2.22 per share. The stock surged almost 90% on the news, which was released on March 23. With its strong financial performance and promising outlook, FiscalNote is poised for continued growth in the future.
- The surge in FiscalNote's stock price could encourage more businesses and investors to take notice, as the company's share price had increased by 45.1% for the week, with the earnings contributing to a 45% increase.
- As technology continues to shape the business landscape, FiscalNote's partnership with OpenAI, the company behind ChatGPT, underscores the firm's commitment to harness the potential of technology in its political and regulatory intelligence services.
- Conscious of its ongoing focus on growth and profitability, FiscalNote aims for 20% to 24% year-over-year revenue growth and a net adjusted EBITDA loss of $8 million to $6 million in fiscal 2023, reflecting the company's continued ideological alignment with fiscal responsibility in the realm of finance and investing.
