FiscalNote Holdings, Inc. (NYSE: NOTE) has completed a strategic review resulting in the divestment of its Board.org peer-to-peer executive community platform for $103 million while simultaneously reporting financial results that exceeded adjusted EBITDA guidance for the fourth quarter of 2023. The company, a provider of policy and global intelligence insights, sold Board.org to Executive Platforms for a total consideration of $103 million, including $95 million in cash, representing a valuation of approximately 7x sales. This transaction enables FiscalNote to reduce leverage within its capital structure and concentrate resources on its primary business areas of policy, regulatory, and geopolitical intelligence solutions.
Financial results for the fourth quarter of 2023 revealed a 9% year-over-year revenue increase to $34.3 million, primarily driven by growth in the company's proprietary Security Intelligence and Analysis Service (SIAS) subscription platform. Gross profit reached $28.3 million with a non-GAAP gross margin of 83%, while adjusted EBITDA surpassed guidance to reach $3 million, representing a 157% increase compared to the same period in 2022. For the full year 2023, FiscalNote reported revenue of $132.6 million, a 17% increase from the previous year, with subscription revenue accounting for 90% of total revenue and growing by 18% year-over-year. The company significantly narrowed its adjusted EBITDA loss to $7.5 million from $24.5 million in 2022, demonstrating progress toward profitability.
The strategic divestiture of Board.org allows FiscalNote to sharpen its focus on expanding AI-enabled intelligence solutions while continuing to develop its core expertise in policy and regulatory intelligence. The company maintains its commitment to leveraging artificial intelligence and technology to deliver actionable insights to clients, with an emphasis on enhancing both profitability and operational efficiency. This strategic repositioning follows the company's announcement regarding its strategic review process and represents a deliberate effort to optimize operations for sustainable growth within the policy and global intelligence sectors. Additional information about FiscalNote's services and solutions can be found at https://www.fiscalnote.com.
As FiscalNote advances its strategic objectives, the combination of divesting non-core assets and strengthening financial performance positions the company to capitalize on growing demand for policy intelligence and geopolitical analysis. The transaction valuation of 7x sales for Board.org provides substantial capital for debt reduction and reinvestment in core business areas, while the improved adjusted EBITDA performance indicates effective cost management and revenue growth strategies. These developments occur as organizations globally increasingly require sophisticated intelligence to navigate complex regulatory environments and geopolitical challenges, creating significant market opportunities for specialized providers like FiscalNote.
