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FiscalNote Tops Estimates and Reaffirms 2022 Guidance Ahead of SPAC Merger

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Founder and Chief Executive Officer Tim Hwang

  • FiscalNote’s 2021 run-rate revenue up 69% year-over-year, beating management guidance

  • Reaffirms 2022 run-rate revenue forecast of $173 million, reflecting 58% growth

  • Continues to expect to achieve positive Ebitda during 2023

  • FiscalNote to go public via previously announced merger with Duddell Street Acquisition Corp. (NASDAQ: DSAC)

By John Jannarone

FiscalNote Holdings Inc., a company that specializes in software for policy makers and regulators, said Thursday it exceeded fourth-quarter and full-year estimates for 2021, led by both organic growth and recent strategic acquisitions.

Led by founder and Chief Executive Officer Tim Hwang, said it posted $109 million in run-rate revenue in December 2021. That exceeded management guidance of $108 million.

“Our investments in new, high-growth lines of business, such as ESG and geopolitical information, amidst increasing demand from customers are driving an acceleration of our organic growth rates to support our outlook for sustained growth,” said FiscalNote CEO & Co-founder, Tim Hwang. “We are excited to bring the merger with Duddell Street to fruition and become a publicly-traded company. Our proposed business combination offers a unique and differentiated structure, driven by a backstop of the trust, and affords remarkable growth opportunities for the future of the company.”

The Washington, D.C.-based company plans to go public through a merger with Duddell Street Acquisition Corp. (NASDAQ: DSAC). Once the deal closes, the ticker will automatically change and FiscalNote will trade as an independent entity.

FiscalNote has more than 4,000 clients, including the Federal Reserve, AstraZeneca Plc, the U.S. Centers for Disease Control and Prevention, 3M Co., and the American Hospital Association.

Demand for geopolitical information and analysis has increased sharply in recent weeks given greater uncertainty since Russia invaded Ukraine.

FiscalNote reaffirmed guidance of $173 million in run-rate revenue for 2022, a 58% increase over 2021. That includes organic revenue growth of 25% to 30%, driven in part by new sales, continued improvements in retention rates, and expanded upsell/cross-sell across the company’s suite of products, including the nine acquisitions completed in 2021. The company expects to reach positive Ebitda during 2023.

“FiscalNote is excited to enter 2022 with an opportunity to leverage its growing scale and market leadership to offer policy and political intelligence during these volatile and uncertain times, when customers are relying on us for more information on world events than ever before,” said Josh Resnik, President and Chief Operating Officer of FiscalNote. “We have increased investments in high-growth business lines which are translating into accelerating organic growth. With our stable, recurring revenue of approximately 90%, adjusted gross profit margin profile in the 80% range, and an expanding product portfolio and total addressable market to cross-sell more products into our growing customer base, we are entering an exciting new phase of growth for the company.”

Contact:

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