FiscalNote Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue but significant improvements in profitability metrics compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues decreased to $29.4 million, down 13.4% from $34.0 million in the same period of 2023. For the nine months, revenues were $90.8 million, a 7.7% decline from $98.4 million year-over-year. The decrease in revenue was attributed primarily to a drop in subscription revenue, which accounted for approximately 93% of total revenues. Subscription revenue for the third quarter was $27.2 million, down 9% from $30.1 million in Q3 2023, while for the nine months, it fell to $84.0 million from $88.0 million.

Despite the revenue decline, FiscalNote achieved a notable reduction in operating expenses, which totaled $36.3 million for the third quarter, down 23.6% from $47.5 million in Q3 2023. For the nine months, operating expenses decreased to $117.0 million from $156.2 million, a reduction of 25.1%. This led to an operating loss of $6.8 million for the third quarter, an improvement from a loss of $13.5 million in the same period last year. The nine-month operating loss also improved significantly to $26.2 million from $57.8 million.

Net loss for the third quarter was $14.9 million, slightly higher than the $14.5 million loss reported in Q3 2023. However, for the nine months, FiscalNote reported a net income of $22.9 million, a substantial turnaround from a net loss of $64.7 million in the same period of 2023. This improvement was bolstered by a gain of $71.6 million from the sale of Board.org, completed in March 2024.

The company’s cash and cash equivalents increased to $25.7 million as of September 30, 2024, up from $16.5 million at the end of 2023. Total liabilities decreased significantly to $239.4 million from $327.1 million, reflecting the repayment of debt following the sale of Board.org.

Strategically, FiscalNote has implemented cost-saving measures, including a reduction in full-time equivalent headcount by approximately 175 employees since Q3 2023. The company continues to focus on enhancing its product offerings and client support to drive future growth. Additionally, it completed the acquisition of Dragonfly Eye Limited in January 2023, which is expected to contribute to its long-term strategy.

Overall, while FiscalNote faced challenges in revenue generation, its efforts to reduce costs and improve profitability have yielded positive results, positioning the company for potential growth in the coming periods.