Shares of FiscalNote (US:NOTE) were launched into the stratosphere in trading on Thursday after the Global policy and market intelligence provider was picked by OpenAI as a partner for its ChatGPT plugin, sending the stock price around 66% higher in afternoon trading.

The rally to $2.38 a share is all but a sigh of relief for investors that have been on the register since NOTE first listed in July 2022 by way of a SPAC merger with Duddell Street Acquisition (US:DSACU) at $10 per share.

FiscalNote was selected as one of 14 inaugural “trusted partners” to provide legal, political, and regulatory data and information real time data sets to the generative artificial intelligence platform.

The Washington, D.C. company’s flagship product, the Government Relationship Management service provides government affairs professionals with a comprehensive platform for tracking legislation, regulations, and policy issues across all levels of government.

The platform leverages advanced algorithms and data analytics to help organizations identify key trends, track bills and regulations in real-time, and understand the potential impact of policy changes on their business.

Capital Insights

The collaboration between FiscalNote and OpenAI is poised to revolutionize the way that organizations approach regulatory and political information in the future. It will enable FiscalNote to develop more sophisticated algorithms that can analyze large volumes of data and identify trends and patterns that may be missed by human analysts.

FiscalNote’s CEO and Co-founder Tim Hwang said the partnership “is the beginning of an innovative collaboration with a fellow AI pioneer, and we intend to continue to push the bounds of what is possible as we use this cutting-edge technology to deliver results for our global customers and advance their business objectives.”

With FiscalNote’s cutting-edge technology and OpenAI’s powerful machine learning capabilities, the partnership promises to deliver unprecedented insights into legislative and regulatory developments.

This could be a game-changer for organizations that rely on government affairs professionals to help them navigate complex policy environments.

Encouraging Guidance

At the beginning of March, FiscalNote reported preliminary full-year 2022 results, telling investors revenue grew by 37% over the year to $113.8 million. NOTE reported annual recurring revenue (ARR) of $113 million at the end of the year, posting 14% growth over the year.

Management also forecast sales for 2023 of $136 million to $141 million, above consensus forecasts of around $135 million. On a total run-rate basis, NOTE expects to generate $148 million to $155 million in sales when including the recent (January) Dragonfly Eye Ltd acquisition. They reiterated that the company remains on track to achieve positive adjusted EBITDA in the final quarter of 2023.

BTIG analyst Mat VanVliet thinks the guidance is encouraging as FiscalNote continues improving communication to investors that provides greater earnings visibility. VanVliet noted that his organic growth assumptions stayed firm on the update with the forecast weighted more on the back-end with the assumption of contribution from further acquisitions.

BTIG remains buy rated on the stock with a $7 price target.

Fintel’s consensus target price of $7.01 suggests the stock could rise 415% over the next 12 months.

NOTE will next update investors on March 28 when releasing FY22 and Q4 results before the market open. S&P Capital IQ shows a consensus estimate of a loss of $0.09 for the quarter, bring the fiscal year loss to $2.78. EBITDA is expected to be negative $3.93 and negative $22.12, for the respective periods.

Meanwhile, short interest in NOTE stock remains above average, according to Fintel’s Short Squeeze Score of 58.85. The scoring model uses a combination of short interest, float, short borrow fee rates, and other metrics. The number ranges from 0 to 100, with higher numbers indicating a higher risk of a short squeeze relative to its peers, and 50 being the average.

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.