SaaS Financial Model 3 Pricing Tiers (Monthly & Annual) Excel Template by Henry Sheykin - Financial Models https://finmodelslab.com/ Last version published: 13/05/2019
Time Series Time Series tab to define the starting Year and ending Month. Fiscal Year end in the business model - input the last month of the Fiscal Year. If you don't need this, simply type in Dec. Initial Fiscal Year in the business model - please, choose your first Fiscal Year. If you have chosen Dec in the Fiscal Year End than your fiscal year corresponds to the calendar year.
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Dashboard - Currencies Input Currency - currency for the assumptions and inputs. Insert your currency sign $/€/¥/£ or type in USD/EUR/GBP or any other abbreviation. Output Currency - currency for the outputs and graphs. Insert your currency sign $/€/¥/£ or type in USD/EUR/GBP or any other abbreviation. Currency exchange rate - enter your upto-date exchange rate of the currency in which you want to display your financial report. Denomination - use denomination if you want to show outputs in thousands, millions or billions
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Dashboard - Customer Acquisition The model assumes that to acquire every new deal you are going to spend a marketing budget. The model has two acquisition channels: offline and online. In both sections, you can type in Monthly Marketing Budget and Cost Per Visit to estimate Visitors The model assumes that visits should be converted into the deals through the 3-tier conversion. From visitors to sales opportunities, from sales opportunities to engaged sales opportunities and finally from engaged sales opportunities to deals.
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Dashboard - Deals Allocation
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At this table, you may input the name for each offering, and the allocation of new customers between each offering. Additionally, you should enter allocation for monthly and annual contract length for each offering. In this way, you will set up new customer acquisitions for each contract types and offerings.
Pricing & billing inputs
The subscription pricing covers two contract length: monthly and annually. This means all your subscribers in a particular offering can be split by monthly and annual billings. Using Upsells you can increase the regular price for $$$ applied to some % of your customers. By entering revenue collection delay terms you can set up a payment delay for a month or more from your subscribers. This will affect your cash flow in terms of revenue collection.
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Customers Churn & Upgrade Setup
The model takes into account the lost customers using churn rate typed in here. On this sheet, you may input the average monthly churn rate for each offering by years. Additionally, you have the feature to upgrade/downgrade some portion of your customers within each offering. Use a percentage of customers movement between products to forecast customer upgrade from one offering to another. The entered percentage will be applied every month to upgrade/downgrade the customer base for each offering.
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Dashboard - Debt There are 3 debt lines: either choose one or go for all three. Put the amount of money, select launch date and repayment term, interest rate and debt type. There are two debt types: â–Ť
annuity (paid back in installments of the same size consisting of a loan repayment portion and an interest portion) and
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usual (the same amount of money is paid for the debt principal, and the interest goes down every month)
In addition, there is also a grant or nonrepayable funding. Usually, it is given by a government department.
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Seasonality Setup
Here at this tab, you may spread the marketing budget across the 12 months. An entered allocation will be applied to all of 5 years in the model. Enter no more than 100% in total. You have a check feature to the right of seasonality inputs.
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Wages
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The wages tab allows to easily calculate salaries for staff categories. Use 1 line per employee/category, and simply type in the hire date, fire date, and annual salary. Next, use the staff numbers section to type in FTE count for each year individually. An increase of FTEs means that you are going to hire additional FTE's. In case of decrease FTEs means you fired some FTEs. New FTEs will be hired/fired on Jan of the relevant year. If there are raises or changes in salaries, simply type in the annual Salary raise per position in the appropriate columns. The model will automatically calculate this cost going forward until the fire date.
Cost Of Services Sold
The model is built to be easy to use to enter expenses. Enter in the list of expenses you want to forecast in the rows COSS expense. (i.e. "cost of selling the services that earn revenue"). And type in the percentage of revenue to be spent in the specific year.
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Variable Expenses
Enter in the list of variable expenses you want to forecast in the rows Variable expense. You have 3 different ways to manage your variable expenses: • As % of Total Revenues - when you pay % percent from all revenues as an expense • As $ per Active Customer - when you pay X dollars per each active client • As $ per New Customer - when you pay X dollar per each new client Customer Acquisition Cost is grey and not allowed to change. This is the expense calculated by the model based on the marketing assumptions you have entered
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Fixed Expenses
Enter in the list of fixed expenses (i.e. ""running the business"") you want to forecast in the rows Fixed expense. You have multiple options of when to start to accrue the expense and when to end accruing. You may define periodicity of the accrue for each expense. It could be One-time, daily, weekly, bi-weekly, monthly, quarterly and etc.. This gives you the flexibility to manage expenses.
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Fixed Expenses
Enter in the list of fixed expenses (i.e. ""running the business"") you want to forecast in the rows Fixed expense. You have multiple options of when to start to accrue the expense and when to end accruing. You may define periodicity of the accrue for each expense. It could be One-time, daily, weekly, bi-weekly, monthly, quarterly and etc.. This gives you the flexibility to manage expenses.
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Assets
You may purchase some assets on a specific date and depreciate it across typed in years using this tab
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Cap Table
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Cap Table
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At this tab firstly at the top, you may see four tables. In the first table, you have to input the name of shareholders, the amount of common stock, a common option for employees and the unissued employee stock options plan. In the following three tables, you have to input the name of investors, the amount of ESOP increase (Pre-funding), pre-money valuation, amount of investments and select the round close date for Angel Round, Seed Round, and Series A. Below you can see detailed information for each round of investment.
Reports - Dashboard
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Reports - Dashboard
Here you can see 4 charts and a table.
The left upper chart gives you an active customers breakdown by offerings. The right upper one shows your EBITDA, yearly profitability and EBITDA percent. Left lower chart is for cash flow, which includes operating, investing and financing categories. Net Cash Flow is highlighted in green color. Right lower one depicts cumulative cash flow. The only difference from the ordinary cash flow is that it has an accumulative function starting from the first year and ending with the 5th one. The table in the left lower part is called Core Financials. Basically, it summarizes the reports and gives us a profit and loss statement. Last two rows in the table are from the cash flow chart. They
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Financial Statements Summary
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The Summary sheet is a Summary of the key financial reports of the model. Moreover, you have the options to select the year to see detailed outputs. The summary presents 3 core reports:- profit and loss- balance sheet- cash flow You can review them in different ways: by each month of each year or check out 5 years altogether in the left uppe table.
Top Revenue
Here you can track how much money each offering generates.
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Top Expenses
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Here you can track the biggest 4 expense categories ranked as a sum of 5 years and the "other" which is the rest of the expenses.
Break Even Analysis
Here you can track when your company is supposed to move to a whole new level. When its overall revenues become significantly bigger than expenses.
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Valuation
The model can do valuation of distribution of current cash flow to Investors - Discounted Cash Flow method.
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Cash Burn Ratio
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Burn tab calculates an average cash balance divided by monthly average operating expenses Burn ratio shows how much time (months) needed to burn out a cash balance (average) spending on operating expenses.
Reports: Break Even Analysis
Here you can track when your company is supposed to move to a whole new level. When its overall revenues become significantly bigger than expenses.
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SaaS Charts
The Key SAAS KPIs tab shows the break down of: - MRR (Monthly Recurring Revenue) by offerings, - MRR movement which is lost, new and ending MRR, - Average CAC (Customer Acquisition Cost) and - ARPU (Average Revenue Per User), as well as Lifetime value/months All these graphs are for the first 2 years and for all 5 years by month.
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Financial Charts
Here you can visually track key financial indicators over the five years period as well as 24 months period. • EBITDA/EBIT shows your company's operational performance • OPERATING CASH FLOWS shows your company's inflows and outflows • PRODUCTIVITY KPIs shows your average revenue per employee and average expenses per employee • REVENUE BREAK DOWN shows you all your revenue streams • CASH BALANCE this is the forecast of cash in hand you will have.
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Customers Charts
On this tab, you can track customers count broken down by offerings as well as overall customers movement (lost, new, active).
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Angel Round CapTable
The ANGEL round captable outputs are shown there.
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Seed Round CapTable
The SEED round captable outputs are shown there.
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CapTable Print
The total outputs about capitalization table are shown there.
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Thank you very much for your interest in my tools! If you enjoyed using my model, please let people know about your experience! Give 5-star feedback here & share this page across social networks If you have any suggestions or ideas of how to make this model more useful, don't hesitate, just send me a PM - Henry Sheykin