MODEL OVERVIEW

Highly versatile and user-friendly Excel model for the preparation of a rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection for a startup or existing business generating revenue from selling subscription products/services.

The model allows the user to model up to 5 different subscription products/services. The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations.

KEY OUTPUTS

• Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a quarterly basis across up to 5 years and summarised on an annual basis.

• Dashboard with:

  • Summarised projected Income Statement and Balance Sheet;

  • Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;

  • List of key ratios including average revenue growth, average profit margins, average return on assets and equity and average debt to equity ratio;

  • Bar charts summarising income statement and Balance Sheet projections;

  • Chart presenting revenue mix and total users per month

  • Gross profit by income source.

KEY INPUTS

Setup Inputs:

• Name of business;

• Currency;

• First projection year and quarter;

• App names, variable costs, staff cost, fixed costs, fixed assets and borrowings;

• Sales tax applicability for revenue and cost categories;

Actuals Inputs:

• Opening balance sheet (for existing businesses);

• Income Statement actuals (for trend analysis);

Projection Inputs:

• Revenue

  • New Users;

  • Free trial to paid user conversion rate;

  • Monthly, annual, quarterly subscription mix;

  • Renewal rates;

  • Subscription prices.

• Variable Costs including:

  • Cost per app sale;

  • Annual fees per app;

• Other cost inputs including

  • Marketing costs

  • Staff costs  

  • Other costs

• Sales and corporate tax inputs including rate and payment periods;

• Dividend inputs including amount or percentage of retained earnings and frequency;

• Fixed Assets including addition amounts and useful life;

• Borrowings including addition/redemption amounts and interest rate;

• Share Capital additions.

MODEL STRUCTURE

The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals’ and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Charts’ and ‘o_DCF’.

KEY FEATURES

• The model follows best practice financial modelling guidelines and includes instructions, line item explanations, checks and input validations;

• The model is not password protected and can be modified as required following download;

• The model contains a dynamic timeline that allows for a mix of actual and forecast period across a 5-year period allowing projections to be rolled forward from month to month;

• Timeline is split on a monthly basis and summarised on an annual basis;

• Costs are split into: variable and fixed for better driver-based forecasting;

• The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):

  • Subscription Products – 5 products;

  • Variance costs – 5 categories (1 for each subscription product)

  • Staff costs – 8 categories;

  • Marketing costs – 5 categories;

  • Other expenses – 15 categories;

  • Fixed Assets – 5 categories;

  • Borrowings – 3 facilities;

• Apart from projecting revenue and costs the model includes the possibility to model inventory, deferred income, payables, fixed assets, borrowings, dividends, corporate tax and sales tax;

• The model included an integrated discounted cash flow valuation using the projected cash flow outputs;

• Business name, currency, starting projection period are fully customisable;

• Revenue, cost, fixed asset and Borrowing category descriptions are fully customisable;

• The model includes instructions, line item explanations, checks and input validations to help ensure input fields are populated accurately;

• The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.

MODIFICATIONS & SUPPORT

If you require any be-spoke modifications or support, we are more than happy to assist. Please send us a message below or contact us on hello@useprojectify.com