Good morning, everyone. Thank you for joining us here at the H.C. Wainwright twenty-sixth Annual Global Investment Conference. My name is Anthony Stiven . I'm an analyst on the investment banking team here at HCW, and it is my pleasure to announce our next featured speaker. We have Tim Hwang, who is the Chairman, CEO, and Co-founder of FiscalNote Holdings. Tim, take it away.
Great. Well, everybody, thanks for taking the time here to listen to our presentation. I know we wanna kinda go over the fundamentals of the business here today, as well as answer any questions people may have. Why don't we kind of dive straight into it? FiscalNote, in a nutshell, what we are is we are the Bloomberg Terminal for law. People use our platform to look up legislation, regulations, court cases, government filings, government documents from 80 different countries around the world. We service corporations, government agencies, law firms, large organizations as they try and navigate political changes or legal and regulatory changes overall. In a nutshell, the company here, just some stats on the business.
We're over $100 million in recurring revenue, currently service over half the Fortune 100. Currently slated to do about $120 million of GAAP revenue this year. The business is quite interesting, right? We're a software subscription information company, and so we do north of 85% adjusted gross margins, clock about 98% retention rates. For the most recently reported quarter, clocked about $2 million in adjusted EBITDA. For 2024, expect approximately $8 million in EBITDA or so for the business. Company's well-capitalized, with just under $40 million in cash. Over 600 employees, who work around the world from our headquarters in DC, as well as our offices in London, Brussels, Korea, and Australia.
And currently service over 4,000 customers, as they range from large government agencies, law firms, corporations, et cetera. So just, in a nutshell, we can kinda dive into, you know, the business and kinda what we do here. As I mentioned, we are a subscription software-as-a-service platform that helps organizations really navigate political, regulatory, and legislative changes. And the three types of customers that we service here are fairly simple, right? So about a quarter of our business are government agencies. These are DOD, FBI, CIA, Federal Reserve, FDA, SEC, who all currently leverage FiscalNote to monitor things like defense appropriations or changes from a regulatory perspective around how programmatic things may occur in different government agencies and the like.
And so if you've ever wondered how the DOD tracks individual line items around individual military appropriations, they're probably looking at a FiscalNote platform every day inside the Pentagon. That's approximately about a quarter of our business today, but half of our business is also large corporates, as I mentioned, about half the Fortune 100, and they range from companies like Nestlé, FedEx, Microsoft, all FiscalNote customers today, who are monitoring legislative regulatory changes around things like data privacy changes in Australia, ESG regulations in Indonesia, logistics and transportation regulations in Italy. We are navigating and monitoring those political and regulatory changes for them around the world. The last segment of our customers, approximately 20% of our customers, are K Street.
So this is the Beltway, where we currently service organizations like the National Association of Realtors, the National Association of Home Builders, the National Education Association, which is the teachers union of America, you know, and large political institutions like the U.S. Chamber of Commerce, Planned Parenthood, Sierra Club. So we essentially are powering the democratic processes in Washington and state capitals around the country, who are leveraging FiscalNote's platforms to monitor legislation, monitor political changes in elections, and really understand the potential changes for their constituencies. We kind of view ourselves as being in a really interesting market, particularly at a really interesting time. 2024, over the last twelve months, over half the world's population has seen some sort of an election.
And of course, here in the United States, we also have an election coming up in November. But the market tailwinds that really drive our business are things like political complexity, regulatory complexity, geopolitical change. And then, of course, how that translates into companies, whether it's a large oil and gas company trying to navigate the war in Ukraine, a large healthcare pharmaceutical company trying to understand regulatory challenges and market access issues, that demand for information, as well as automation, is particularly important for companies who are really trying to navigate these geopolitical trends.
So, when you really think about what's driving FiscalNote's business here today, you know, you just open up the newspaper, and you'll see it, front page of The New York Times, The Wall Street Journal, you know, CEOs getting dragged in front of Congress, regulatory agencies being particularly aggressive about political changes, not just here in the U.S., but also in places like the European Union, in China, and the like. This is a particularly vexing challenge for companies in regulated industries, who are navigating multiple geopolitical conflicts, multiple elections in multiple markets, and really trying to understand how those potential political changes may potentially impact their organizations. Another major sort of tailwind for our business, of course, is generative AI.
and so, we have been investing here at FiscalNote in artificial intelligence for almost eleven years. We use artificial intelligence almost every aspect of our business, from the collection of geopolitical information in eighty different markets, to the translation of those documents, to the summarization analysis of legal documents and the like. We've assembled probably one of the largest corpuses of legal and regulatory data on the planet, pulling in trillions of pages of legal and regulatory data every single year. Whether it's Chinese regulatory data or municipal legislation out of Australia or environmental regulations out of Indonesia, we are pulling in from dozens of different countries, dozens of different languages, translating it, summarizing it, classifying it for our customers.
Over the course of the last year in particular, we've been investing quite heavily in generative AI features that help our customers. As I mentioned, over 4,000 law firms, companies, government agencies leverage generative AI in things like writing automated legal briefs, creating summaries of regulatory changes, understanding congressional or budgetary appropriations in multiple markets. That's really what's effectively driving our business, you know, in terms of our growth moving forward. Here we have a snapshot of our customers, you know, across the board, and so you've got, as I mentioned, a large number of government agencies, not just in the U.S., but also around the world. About a third of the foreign ministries around the world currently use FiscalNote.
Ministry of Foreign Affairs in Korea, Ministry of Foreign Relations in Australia, and particularly large numbers of domestic agencies and military organizations like NATO and others currently leverage FiscalNote to monitor political and regulatory changes. On the corporate side, as I mentioned, we operate in pretty much every sector you can think of. So you, if you've ever wondered how AstraZeneca manages their negotiations around the COVID vaccine, government purchases, or how Chevron is navigating environmental regulations, or Lyft or Uber are trying to monitor airport or rider safety regulations, they're all happening through the FiscalNote platform on a day-to-day basis.
And then, of course, as I mentioned, you know, large political institutions, like the AARP, the NAACP, you know, and other organizations who are really trying to navigate the political aspects of American society, all leverage FiscalNote and the platforms that we create here today. So the FiscalNote platform is quite simple. As I mentioned before, if you've ever used a CapIQ, Bloomberg Terminal, Thomson Reuters Eikon, Morningstar, CapIQ , a very, very similar platform. You get a login and a password, and in that login and password, you essentially get, you know, access to legislative and regulatory data from 80 different markets, deep analysis, sentiment analysis, AI-driven analysis effectively around regulatory changes in China, all the way to Australia to the European Union. And, what do our customers exactly pay us for?
Here are some real-life examples. This is a large e-commerce company, trillion-dollar plus in market cap, and you can probably guess what they're dealing with as far as sales tax regulations, data privacy regulations, you know, a variety of sort of regulatory changes, particularly with respect to their cloud business, with respect to logistics and the like. They initially start, you know, using FiscalNote to monitor sales tax regulations in the European Union, expand that to dozens of different countries around the world. They started off essentially as a less than $10,000 a year customer, turning to a $1 million a year, effectively continuing to add datasets, continuing to add customers, and countries onto the platform.
Here you have a very large search engine company who is using our platform for a variety of different regulations around data privacy, telecommunications, so on and so forth, antitrust and the like. And so again, starting off with congressional data, using FiscalNote's platforms to monitor changes with respect to congressional changes, upcoming legislation, potential hearings and the like, and expanding, of course, to 20 countries and now expanding, I think, to another 35 countries in the last year. Going from, you know, call it $20,000 a year to just under $3 million a year with us here at FiscalNote. So how does this technology work exactly?
How do we essentially take these trillions of pages of legal documents in Portuguese and Spanish and Mandarin and Japanese, and turn it into something useful for our customers? Essentially what we do is we essentially pull all these different legal and regulatory documents from multiple different parliaments, congresses, national assemblies around the world. We take that text, whether it's transcribed or not, as well as audio transcripts of government hearings, government debates, speeches by major politicians, including their videos.
We pull all that information in, use artificial intelligence to structure it, translate it, tag it, and then effectively allow our customers to say, "Hey, I'm very interested in data privacy in the European Union." We'll effectively pull up, in real time, every political debate that's going on around data privacy in every major national assembly, in parliament that's relevant to you. At FiscalNote, you know, we've been investing in our products for a very long time, particularly in artificial intelligence. Here you'll see a number of our products that we've launched over the years, and here you'll also see the core tenets of our AI strategy, which start off with proprietary aggregation of content and data from eighty different countries. So we pull, as I mentioned, international, federal, state, and local legislation regulations.
We're not just pulling the National Assembly information from Australia, but also things like, you know, city council regulations and zoning legislation out of Tallahassee or Sacramento. We're pulling that information effectively in real time. Now, we have this proprietary access to legislative and regulatory documents from multiple different jurisdictions that can tell you what any government around the world is doing at any time. So what we've done with that information is we built our own language model, a legal language model, if you will, to be able to search, track, and analyze this legislation regulation. We call it FiscalNote GPT, where people can essentially ask real-time questions like, "What's the trending zoning regulations across municipalities in the U.S. around commercial to residential conversions?
And effectively, we're able to pull major legal and regulatory changes essentially in real time. We've also partnered with OpenAI, Microsoft, and Google, directly integrating into ChatGPT, Google Gemini, as well as Microsoft Bing, where FiscalNote is the preferred partner, if you will, around legislative, regulatory, and geopolitical updates for these large language models. And of course, we are also launching our own Copilots and language models into the market that effectively enable our customers to monitor these political changes in real time. Here you'll actually see these live integrations with ChatGPT and Google and Microsoft that are currently on the market today, where we're pulling, as I mentioned, over 50,000 data sources.
We've got a dozen patents filed along legal AI in the market, and another nine coming in the marketplace today. Before I kind of turn it over to questions, certainly happy to go over some of our financials. You know, just in the most recent quarter, we've got about $30 million or so in GAAP revenues, just under $2 million in adjusted EBITDA, and just under $40 million in cash. As a company, our guidance for 2024 being about $121 million in run rate revenue, $109 million in recurring revenue, and 98% net dollar retention. The first half of 2024, we booked about $61.5 billion in GAAP revenues, adjusted gross profits of just around $52 million, adjusted EBITDA of $3 million.
One thing to note in Q2 of 2024, we clocked our fourth consecutive quarter of profitability on an Adjusted EBITDA basis. We expect that Adjusted EBITDA to continue to compound upwards, given the fact that we have recurring revenues over 85% adjusted gross margins, and that incremental growth effectively drops straight down to the bottom line as far as adjusted EBITDA. So just in a nutshell here, FiscalNote already a leader in terms of AI sector-specific information. We've invested the last 10 years in creating a deep reservoir of technical expertise, a world-class AI team, proprietary data and analytical tools.
We have launched already into the market, FiscalNote's GPT, our AI Copilots, in the legal and regulatory space, have proprietary access to, over eighty different countries' legal and regulatory datasets. We are effectively the market leader in legal AI, and of course, continue to expand our offerings through, the broad distribution reach of our, almost 5,000 customers, across North America, Europe, and APAC, to continue to accelerate growth, and drive, EBITDA into the future. So with that, I guess happy to, take any questions here.
Thanks, Tim. Just want to say, you know, on behalf of H.C. Wainwright, we're happy that you're here in person and appreciate the time and effort that went into your presentation. So with that said, happy to open up the floor for questions. Just raise your hand, and I can come by with the mic, and if there aren't any questions, just want to say thanks again, Tim, and hope your conference is productive.
Great. Thanks, everybody.