FiscalNote Holdings, Inc.

Good morning, my name is Aaron and I'll be your conference operator for today. At this time, I would like to welcome everyone to the fiscal note first quarter 2024 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session and we'll provide further information on that point. If you do want to get your name in the queue now to ask a question, you can press star followed by the number one

your telephone keypad and if you would like to withdraw that question you can press star followed by the number one once again with that we can now begin today's call i would like to turn it over to the good morning my name is bob burrows i'm with western avenue advisors rlc which was hired in april as an investor relations consultant to the company following sarah buda's recent departure i look forward to speaking to and being a resource for the company's investor stakeholders in the days which and months ahead. Thank you all for joining the call today as we discuss fiscal notes first quarter of 2024 financial results. With me on today's call with prepared comments are Tim Huang, chairman, CEO, and co-founder, and John Slabaugh, CFO and chief investment officer. Other members of the senior management team will be available during the Q&A session that will follow these prepared comments. Please note a slide deck specific to the first quarter of 2024 results and intended as a supplement to the earnings release as well as the forthcoming prepared comments from management, is available on the company website. In terms of important housekeeping, it is important to mention the following. During this call, we may make certain statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance, but rather are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statement. or discussion of the material risks and important factors that could affect our actual results, as well as the risks and other important factors discussed in today's earnings releases. Please refer to our SEC filings, which are available either on our company website or the Securities and Exchange Commission's EDGAR system. Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release or the accompanying slide deck for this call, both of which are available on the investor relations portion of our website. for reconciliation of these measures to their most directly comparable GAAP financial measures. Finally, we use key performance indicators, or KPIs, in evaluating the performance of our business. These include run rate revenue, or RRR, annual recurring revenue, or ARR, and net retention revenue. Again, please refer to the earnings release or the accompanying slide deck for this call for definitions of these important metrics. And with that, I'd like to turn the call over to Fiscal Notes Chairman and CEO and Co-Founder, Tim Huang. Tim?

Thank you, Bob, for that introduction, and thank you all for joining us this morning. It's great to be with you today to discuss our first quarter of 2024 results and provide an update on the state of our overall business. We'll also offer some perspective on our strength and balance sheet position and profitable growth with the recent investiture of a non-corp business, as well as elaborate on our product strategy and our commitment to driving strong return on invested capital. I always look forward to these opportunities to connect with our shareholders and share with you the exciting developments at FiscalNote. First, let me remind you of some of the core fundamentals of FiscalNote. We're on a mission to help our customers make sense of the complicated and constantly changing world we live in by delivering a proprietary AI-enabled platform that aggregates and organizes regulatory, political, and macroeconomic information and analyze the impacts on their organizations. We are the market-leading AI platform for the regulatory, legislative, policy, and geopolitical intelligence sectors essentially the Bloomberg terminal for regulatory, legislative, and strategic risk, drawing upon a deep reservoir of technical expertise, proprietary data, and analytical tools. Our proprietary, high-quality, and authoritative data on a range of aspects include international, federal, state, and local legislation across 80,000 cities, all 50 states, and every major federal regulatory agency, as well as deep profiles of tens of thousands of policymakers, millions of legislative regulatory booths, and purpose-built analytical tools monitoring governments around the world that have enabled FiscalNet to build a market-leading position across thousands of customers. Many of our assets, including CQ, serve essentially as the Dow Jones of legislative and policy worlds, providing deep domain expertise with proprietary data. CQ, as an example, has been providing Washington with information about congressional votes, budgets, and congressional information since 1945. We operate in a large and growing $40 billion addressable market driven by increasing global uncertainty, as well as operational and regulatory complexity that impacts almost every organization, from governments and nonprofit organizations to large enterprises who operate in a highly regulated global environment. We have a strong and enduring competitive mode underpinned by our decade-long investment in data, AI, and human intelligence. Our broad AI leadership in both generative AI and domain-specific AI is supported by a deep patent portfolio and is recognized by the world's preeminent AI platforms from OpenAI to Microsoft and Google. We are passionate about our customer success. Thousands of organizations, ranging from government agencies and public sector organizations, to major corporate customers in the Fortune 100 rely on fiscal note every day to help interpret the impact of policies, legislation, elections, global conflicts, and macroeconomic shifts on their institutions, and more importantly, to take actions which achieve their business objectives and minimize political, operational, and economic risk. This forms the basis of our durable and long-term growth. We enjoy recurring, compounding revenue streams, with customers who renew their subscriptions year after year and have a proven business model of successful upsell and cross-sell by offering incremental data sets, products, and capabilities that enhance and expand our customer value. Our net dollar retention has stayed in the high 90s on a consistent basis, and our revenue stream is approximately 90% recurring in nature, which provides for a high degree of visibility. We have strong financial momentum supported by healthy compounding top-line growth, ongoing adjusted profitability, and a solid cash position. Our management team has a strong record of innovation and product success that have enabled us to push the balance of the market and be innovative on behalf of our customers. We have relentlessly focused on capital allocation strategies that support our goal to build a durable, profitable, compounding growth company that provides unique value to the world's most important decision makers. As we scale the business, we expect to deliver long-term, free cash flow margins in line with other information services leaders at scale. Just as S&P Global, IHS Market, FactSet, Morningstar, CoStar, and Avalara have innovated in their respective information fields, Fiscalone is forging a new path for global political, legislative, and regulatory policy and market intelligence by delivering mission-critical information that has a direct impact on our customers' operations. With our established AI pedigree and our vast array of validated, trusted data, We are in a unique position to lead what is an entirely new category within the information service industry. We have a clear competitive advantage to deliver on this outcome. With that as a backdrop, let me turn to some of our exciting developments that are happening here at Fiscal Note. We kicked off 2024 with a solid start, delivering total revenues of $32 million, which was slightly above our previously provided guidance, and adjusted EBITDA of just over $1 million, marking an important improvement in profitability versus the prior year and in line with previous guidance. This also marks our third straight quarter of majesty without profitability as a company. These results reflect the hard work and dedication of the entire Fiscal Note team as we continue to execute on our mission to deliver critical insights to the world's most important decision makers. Whether it's the Fortune 100 company navigating complex regulatory landscapes or government agencies seeking to understand the impact of policy changes Fiscal Note is there, providing the data, tools, and expertise they need to make informed decisions. As we entered this year, we did so as a leaner, more focused organization with a relentless commitment to leveraging our decade-long investment in artificial intelligence. We have launched new products and are optimizing our go-to-market approaches to maximize the impact of our AI technologies married with our product strategy. This is providing enormous benefit to our customers through enhanced access to our sizable, unique, and curated data sets. And while the rest of the industry is now catching up to the power of AI, It's been at the core of what we do at Fiscom since our founding. To our benefit, we also believe the current generation of AI tools will help us unlock faster, easier, and more scalable access for a vast collection of unique data assets. Our proprietary AI capabilities, built on a foundation of vast high-quality and trusted datasets and deep domain expertise, continues to strengthen and amplify our leadership position and drive unparalleled value for our customers. From automating the analysis of complex documents and data sets, from our foundation and legal and regulatory, to our expansion into macro and microeconomic data, geopolitical information, and operational security, to predicting the impact of policy changes and identifying unmaterialized risks in global finance, security, and supply chains, our AI is transforming the way organizations navigate an increasingly uncertain and highly complex world. So we believe fiscal net strategy of investing in proprietary content and deep AI workflows will ultimately come the dominant way that customers will come to navigate legislative, regulatory, and political risk in the future. In short, we believe that we are in the right place at the right time. In the first quarter, we made significant progress on several fronts. Most notably, we successfully completed the divestitureboard.org, a strategic move that enabled us to reduce our debt by $65 million and strengthen our cash position by approximately $15 million. two outcomes that positively impacted our balance sheet. This transaction not only enhanced our financial flexibility, but also allows us to focus our resources on our core markets and on offerings where we see the greatest potential for long-term growth and shareholder value creation. The divestiture is also a reflection of Fiscal Note's focus on strong and expanding product-level margins. As we gain revenue scale against our fixed operating costs, we anticipate realizing substantial incremental compounded growth in adjusted EBITDA. Having achieved adjusted EBITDA profitability in 2023, we now turn to driving sustained growth in the business. I will elaborate on this in two parts. The first is in talking in depth about our AI and product strategy. The second is discussing our operational improvements, which are driving profitable growth. Our fiscal note team has done an excellent job, particularly in new green shoot areas of growth, including our European policy business and our security risk businesses. And we expect double-digit growth from both. As these growth areas of our business continue to scale and become large in proportion of our business, we expect their impact to start pushing up our overall growth rates. So, let's spend a few moments talking about AI. Understanding our AI strategy is critical to understanding where we're going and where some of our growth will come from. I will first talk about where we are, and then I'll focus on where we're going with respect to our product strategy and our investments in AI. As recognized by OpenAI, Google, and Microsoft through our AI partnerships with each of these industry leaders, we are now focused on ensuring that we can surface our AI strategy to as many clients as possible with the goal of driving growth in the future. Our trusted content and information, married with deep subject matter expertise, a leading AI organization, and access to thousands of existing customers spanning corporate and government agencies, enable Physical Note to be at the forefront of generative AI. This represents a compelling opportunity to surface our product and data capabilities to more users through even more use cases. With the goal of providing a deeper dive into AI investments, I'd like to outline three stages of development that have allowed us to embark upon our journey into the current generation of AI. Some of these stages are technical, but I believe they're important to outline in order to understand the foundation we have created and what it will enable. For simplicity, I'm going to classify our past 10 years as stage one. Cisco has spent the past decade aggregating, cleansing, and building a massive repository of legislative, regulatory, and geopolitical information from over 80 different countries. We have spent a considerable amount of resources in developing and maintaining proprietary technology and deep expertise in building a market leader's position in these information fields. We have leveraged a range of technologies, including data ingestion, ETL pipelines, preprocessing, metadata tagging, taxonomy creation, machine translation, data scan creation, et cetera, and we've pointed and geared these technologies towards our industry vertical. We have built a powerful data ingestion platform. We have pioneered a new category, and this market-leading position has enabled us to service thousands of customers from Fortune 500 companies to government agencies. Our products analyze political and policy trends and provide us with a unique and unparalleled view into understanding the most pressing regulatory, legal, and policy challenges that our clients face every single day. The information services market has been making investments in AI at this stage for years, but now with generative AI, we'll also see substantial advances in the use of these technologies, such as AI-assisted coding, to accelerate the acquisition of new information sets and consequently an acceleration in the addition of new product lines. Moving to the stage two, in August of 2023, we announced the creation of Fiscal and GPT, the first proprietary platform incorporating generative AI and large language model capabilities customized for legislative, regulatory, and policy workflows. FiscalNet GPCT takes public and proprietary legal, regulatory, and policy data, processes it using some of the most powerful large language models and AI technologies, and applies FiscalNet's longstanding expertise in AI data collection, normalizing it in order to provide users with a reliable, trusted, and secure product experience customized to meet the specific needs of the legal policy and regulatory domain. The initial capabilities that Fiscal Notes GPT was built to enable include assisting customers by identifying pressing policy and regulatory concerns, generating new insights and recommendations, summarizing timely and relevant issues, and finding pertinent answers and information for Fiscal Notes proprietary databases consisting of thousands of trusted internal and external sources, which form the basis of Fiscal Notes award-winning, incisive, and actionable content. Launching this product in 2023 was an important milestone and it set the stage for our next set of product releases. Critical for our clients is the need for domain-specific AI systems that are based on known and accurate data sources. Also critical for our clients is the need for concise responses that do not include hallucinations induced by models trained on data assets that could provide misleading or incorrect responses. Despite the many major advances in AI and the use of LLMs in the technology industry, Further domain-specific systems are needed to advance the expert use case that our clients require to fund their day-to-day legal and regulatory analysis. Fiskalent has developed a domain-specific approach in building our Fiskalent GPT products, and we consequently address the unique complexity that exists in legal and regulatory worlds and believe that as we further develop Fiskalent GPT, it will become a mission-critical service for our customers across the legal, policy, and regulatory industry. In stage three, Cisco, in the first quarter of this year, successfully completed the creation of a co-pilot and reasoning platform that leverages the data from stage one and verticalized LLM in stage two to build extensible and repeatable AI agents and co-pilots. As you may know from following other AI industry developments, the ability to deploy agent technology in combination with large language models is fueling significant improvements, especially where deep domain expertise is required. As such, our new platform enables us to do two things. First, our product teams can rapidly develop AI agents and AI-driven chat interfaces capable of marrying our AI technology, including Cisco GPT, with Cisco's authoritative content and insights to bring significant productivity benefits for the industry. In other words, we created an AI co-pilot and agent creator. This co-pilot creator allows our developers to create AI agents It enables us to leverage our content and information and language models to accelerate our ability to bring generative AI capabilities to our portfolio and markets without the added cost of rebuilding our core infrastructure every time we want to release a new product or address a new AI agent or co-pilot use case. We have consequently updated our product roadmap to accelerate the launch of these new AI co-pilot products, leveraging various parts of our AI co-pilot creator that can launch new products on substantially the same code base. In other words, new AI co-pilots and AI agents will not be contingent on a massive investment in R&D, and we believe this will drive a substantial increase in our ability to launch dozens of domain-specific AI co-pilots. The second thing that our co-pilot creator enables is that because the co-pilot creator relies on authoritative information we're also able to control substantially for hallucinations and other problems with the generative AI space that cannot be obtained from the off-the-shelf AI models such as GPT-4, Anthropic, Mistral, and others. In effect, we've created a reasoning engine in the legislative regulatory categories. Our methodology and reasoning engine allows for fact-checking of information and limits the exposure of proprietary company data into third-party large language models when we leverage them in limited cases, enabling deeper trust of generative AI in our space. Unlike other platforms in the industry that leverage other people's data and other people's AI models, FiscalNet has built its own engine for collecting information and its own AI models adapted for the legal, legislative, and regulatory professions. FiscalNet is consequently best positioned to provide AI leadership in the legislative, regulatory, and policy fields. Given that we have been in the market since 2013 with our products, given our comprehensive global client base, And given that we made a conscious decision to develop deep expertise in data aggregation, AI modeling, and key areas like summarization and machine translation, we believe that we are in the right place and at the right time to capture the upside that sits in front of us. Today and going forward, FifthSchoolNet will leverage the data from stage one, the AI models from stage two, and the co-pilot and reasoning platform as a service from stage three to begin launching a series of AI co-pilots and agents that collectively would build a powerful legal, regulatory, geopolitical AI system, and eventually the world's most powerful AI lawyer. Similarly, we will do the same to support adjacent personas across the span of strategic risk and opportunity. The goal here is to capitalize on our decades of data aggregation and deep domain knowledge and launch dozens of these new point solution AI co-piles in and around legal, regulatory, and strategic risk industries. and thereby radically transforming the work and productivity of our customers. Fisglo's new AI co-pilot will be revolutionary new AI agents, fine-tuned for regulatory and risk management professionals to facilitate their day-to-day work on key paths related to legislation, regulatory compliance, advocacy, constituent communications, and global risk. With this, we are launching what we see as an incredibly powerful generative AI platform that can create and rapidly deploy a series of co-pilots that can expertly perform time-consuming domain-specific tasks, free up substantial amounts of time for our customers, and provide unique and valuable insights that were not possible before. These AI agents are not static and, importantly, will rapidly improve over time as our technology continues to develop and as we deploy our AI-based products and services for our extensive client base. We launched our first AI agent, StressLens. with the real-time ability to quantify the behavioral impact of leading decision makers and influencers across the financial, regulatory, and government domains. Stressed Lens includes an innovative AI agent capable of detecting changes in tone, cadence, and physical movements, deciphering the intricate language of human emotions and the intentions with unparalleled accuracy, while showcasing a groundbreaking leap in technology that will revolutionize the way humans interact with machines. Stress lenses leading AI technology can now help us understand whether an executive on an earnings call is uncomfortable with their numbers, whether a policymaker is nervous, or whether there is a heightened level of discomfort or disagreement on a specific topic along a group conversation. Whether in business negotiations or public speaking engagements, stress lens serves as a trusted ally, providing real-time insights into the underlying emotions driving human interactions. As the world marches towards a future where human-AI collaboration becomes ubiquitous, StressLens stands at the forefront, spearheading a paradigm shift in how we perceive and interact with technology. Cisco has filed a patent on this technology and has also begun exploring making the technology available beyond the legislative regulatory and risk spaces to expand the use of StressLens in other AI markets where detecting human emotion is important, such as public relations and media training, witness preparation for litigation, et cetera. The second AI agent, our Global Intelligence AI Core Pilot, was launched last week. The Global Intelligence AI Powered Assistant was designed to help customers assess the shifting global landscape, manage emerging developments, and mitigate risk involved with the world's most pressing geopolitical, macroeconomic, security, and regulatory challenges. Providing macroeconomic and country risk analysis The Global Intelligence Copilot spans expert content across our geopolitical, macroeconomic, and security and risk portfolio, featuring Oxford Analytica, Frontier View, and Dragonfly. It enables fiscal users to ask questions related to a wide range of issues, such as geopolitical market analysis, forecasts on inflation and other key macroeconomic indicators, travel risk and advisory, ongoing military conflicts, emerging risk by country, and views on the policy impacts of the national election. We've begun to turn on this AI capability for our existing customers who are purchasing our geopolitical and macroeconomic intelligence products with an increasing percentage of our users leveraging our AI capabilities each passing week. We expect that these new capabilities will not only drive improved usage, but also increase customer retention and growth in those products as well. Using the data from stage one, the AI models from stage two the AI co-pilot creator from stage three. We are rapidly bringing to market several AI co-pilots with various skills. Generative AI is creating a substantial step change in opportunity for our customers to automate large portions of their workflows and drive substantial efficiency. Our co-pilot vision through 2024 and into 2025 and beyond encompasses skills such as the ability to summarize changing legislation regulations for multiple different markets, conduct analysis of changing laws and regulations, create research memos, search existing databases of information, review documents for compliance and risk analysis, and various skills that we plan to bring to market over the next several quarters. Developing these skills from negotiating market analysis, legislative and regulatory drafting, and compliance drafting memos, and et cetera, will collectively enable FiscalNote to build the most powerful legal, regulatory, and geopolitical AI system and eventually the world's most powerful AI lawyer. And similarly, we'll do the same to support adjacent personas across a span of strategic risk and opportunity. We are already in market with the first of these solutions and expect to see accelerated development, combining our proprietary data and information with our AI investments to bring these capabilities to our customers faster. From a go-to-market perspective, we are leveraging our substantial customer base of thousands of customers to drive co-pilot adoption overall and to have a deeper level of workflow integration with our customers. To make our co-pilot more accessible and broaden the lower end of our market reach, we're also introducing a product-led growth approach designed to engage individual users regardless of whether or not they are a small business or inside of a large enterprise. Our overall goal is to accelerate getting our AI technologies into the hands of our existing and new customers while expanding the use cases for which our products are reused. By way of example, there are almost 500,000 elected officials in the United States from the president to the local city council member, and they all need to understand pending legislation and regulations and could consequently benefit from the use of fiscally AI in their day-to-day jobs. That segment alone is potentially a $1 billion a year recurring revenue opportunity. Most importantly, the early response from our recently launched AI products has been extremely positive, and we continue to see significant potential to expand these offerings in the coming quarters. In short, we are developing and will be accelerating the use of AI co-pilots, leveraging the thousands of existing customers we have, including government clients such as the United States Congress, the White House, and the DoD, as well as our corporate clients, including Fortune 500 and the legal, legislative, regulatory, and policy departments. In the long run, our goal is to broaden adoption of our AI-enabled technologies by anyone that is in need of global policy and market intelligence. We believe that over the long term, all information services companies from Thomson Reuters, Wolters Kluwer, to LexisNexis and others will need to eliminate and transform their existing cloud-based workflow solutions to adapt to the changing customer demands of leveraging AI agents to query their systems. No longer will it take 15 clicks on a web app to find an answer to a question. People will be able to simply query the ask, get the result, and leverage an AI agent to generate a report or run analysis. This is the future of AI-driven information services. Additionally, we have been approached by both existing and new business partners to explore data licensing and co-selling our co-pilots and AI agents. For instance, we are exploring working with some of the large language model companies to potentially license portions of our data with the goal of exposing a larger universe of users to our data. Many similar such deals have been struck and announced in the press in recent weeks, and we believe it is a trend we can leverage to expand our market opportunity. In particular, we anticipate that our proprietary data assets are uniquely valuable for such partnerships, and our ability to help our clients see around the corner on regulatory and policy matters will allow us to strike uniquely valuable partnerships. We are also exploring opportunities to leverage our AI agents with the various adjacent sectors, ranging from earnings calls to PR agencies to investment banks to provide an ever-expanding universe of uses for our AI capabilities. I mentioned, for instance, the ability to use Treplin in the witness preparation process, or in preparation for giving public remarks in front of Congress, regulatory investigations, or the press, or in the analysis of earnings calls for various earnings call transcripts and financial data providers. Within the next quarter, we will be showcasing our AI platform and co-pilot at an AI showcase day. We will be announcing it in the near term. There, we will further elaborate on the future multi-year roadmap we've established as we've built the most powerful legal, regulatory, and geopolitical AI system, and eventually the world's most powerful AI lawyer. And similarly, we'll do the same to support adjacent personas across the span of strategic risk and opportunity. Having spent the last 10 years in training, gathering, and building data for our vertical, we are accelerating the use of these tools to bring new value for our customers. We are incredibly excited about the future of automation and autonomy and believe Fiscalone is leading the way for an AI-driven future for our customers across all the numerous sectors we cover. We expect a combination of improved operating performance, which I'll further elaborate on, reallocation of our resources post-board.org investiture, and the launch of our new AI code pilot to return the company to a run rate revenue growth of low to mid-teens, as we've enjoyed in prior years. Having elaborated on our AI growth strategy, let me now turn to our operational improvements. Our focus on upsell and cross-sell initiatives is ongoing. By aligning our teams and leveraging our AI prowess, we've enhanced the effectiveness of these strategies, which drive higher contract values and deepen our relationships with key accounts. We've also made key updates to our CRM and other software tools to better support these efforts. giving our sales and customer success teams the visibility and insights they need to identify and capitalize on growth opportunities. We've continued to add new data and intelligence to expand our customer value. In the past several quarters, we added new geopolitical and security intelligence capabilities to the integration of Dragonfly. We also expanded our EU IT offering, providing stakeholder coverage and data for all 705 members of the European Parliament. And finally, We expanded our global policy and analysis coverage to over 80 countries, most recently to include China's national level and provincial level legislative and regulatory policy developments, positioning fiscal as one of the only providers of Chinese national and provincial regulatory and policy intelligence. Our European business now constitutes 15% of our revenues, and our European policy business and security intelligence platforms and risk businesses remain some of the fastest growing in our overall product portfolio. growing north of 20% a year. We continue to explore doubling down in areas of accelerated growth to drive overall growth in the business. Our large enterprise business also continues to grow with meetings with new customers added in the last quarter. As we have doubled down and more heavily invested in larger, more strategic accounts for our line sales field to go after, we expect Brookings growth to accelerate in the second half of the year to align with traditional seasonality and software buying cycles. To that end, we're streamlining and simplifying our sales process, positioning Fiscalint as a unified provider of geopolitical and market intelligence solutions. By bundling our offerings in this way, we believe it can drive higher customer retention and more durable revenue streams. This is allowing us to bring together our various data sets, analytical tools, and workflow solutions into cohesive packages aligned to the key use cases and pain points for our customers. It's about making it easier for them to access the full value of our overall platform and building deeper, more strategic relationships over time. As we look ahead, our path to reaching and maintaining low- to mid-teens compounded annual growth for 2025 and beyond remains clear. We're committed to executing our long-term growth strategy, which centers on deepening and widening our penetration across core customers with our core offerings. This means continuing to innovate and expand our portfolio of AI-powered solutions, while also investing in sales and marketing to drive new logo acquisition and expand our presence in key markets like Europe, where we have a still nascent foothold, but see significant uptap potential. SysLab pushed the industry to combine cloud software and international information. We pushed the market to include point solutions like advocacy software, bundles of legislative information. We pushed the market to include a larger and larger amount of information from countries around the world. We have been pushing and leading product innovation for years. and we'll continue to do so in the future on the AI front. On the strategic front, I want to briefly touch on the ongoing review process. Our recent divestiture unlocked significant value, and our board will consequently continue to evaluate all such strategic opportunities, given the continued view that our overall business remains undervalued in this market. The board.org transaction delivered a tremendous return on our initial investment and is a testament to the significant value of but one component of our overall business. The transaction also demonstrates our disciplined approach to M&A and our ability to create value through both strategic acquisitions, encompassing both purchases and divestitures. We remain laser focused on driving shareholder value by building a durable and profitable business for the long term. But the board will also continue to evaluate all options to realize value for our shareholders. We have a clear AI leadership position in our industry, and it generates consistent recurring revenues from a premier base of global customers. Our business drives consistent 80% adjusted gross margins and has an operational foundation with high operating leverage. We have been profitable on an adjusted EBITDA base for three quarters now, and our go-forward focus remains equally weighted on driving both bottom-line profitability and top-line growth. In closing, I'm incredibly proud of what the FISMO team has accomplished, not just in the first quarter, but over the past year. We've emerged as a leaner, more agile organization with a strengthened foundation for long-term durable growth. Our investments in AI, our focus on operational excellence, and our commitment to the customer success have positioned us to capitalize on the vast opportunities ahead. I believe that the new AI-driven future will mean that the old way of analyzing legislative, regulatory, and geopolitical risk will become obsolete and will drive enormous opportunities for fiscal note. As we move through 2024, we view it as the first step in a multi-year journey to earning our place in the history books and becoming a dominant player in our industry. Our strategy is simple, deep and wide penetration across our core customer base with our core offerings, translating into higher revenues and accelerating adjusted EBITDA margins as we realize incremental operating leverage. It's a powerful formula and one that I believe will create significant value for all of our stakeholders in the years ahead. With that, I'll turn it over to John Slabaugh, our CFO, for a detailed review of our numbers. John.