Software as a Service (SaaS) - 10 Year Financial Model

Description
Of all the new kinds of enterprise solutions made available by the advent of the internet, one of the most disruptive, most useful and most recent has been the software as a service (SaaS) business model. SaaS is a delivery model in which a centrally hosted software is licensed to customers via a subscription plan. Any company that leases its software through a central, cloud-based system can be said to be a SaaS company.

So, if you are interested in investing on a SaaS business or you are running an operating SaaS business, this Financial Model is a flexible tool to calculate financial and operating activities (MRR, COGS, Payroll, Expenses, etc.), project customers' new subscriptions and return rates and forecast a company's growth.

The model includes assumptions and calculations of Initial Investment Costs, Paid and Organic Customers Acquisition, Subscriptions Revenue (3 different subscription packages, 4 different subscription plans, subscriptions packages upgrades & downgrades), 3 Ancillary Revenue Sources, Direct Costs (cloud hosting, customer support, 3rd Party APIs, etc.), Payroll, Operating Expenses, Fixed Assets & Depreciation, Financing through Debt & Equity and Exit Valuation assumptions in case of a potential sale of the business.

Outputs of the template include various financial reports, key SaaS metrics (CAC, ARPU, LTV, IRR, NPV, Payback), a sophisticated Dashboard analyzing business performance and an Investors' Executive Summary.

The model follows Financial Modeling Best Practices principles and is fully customizable.


Detailed instructions for the functionality of the model are included in the Excel file.

Inputs:
• Customer Acquisition metrics (Paid & Organic, Conversion Rates, Churn Rates, etc)
• Subscription Revenue Assumptions (3 types of subscription packages, 4 types of payment plans, subscription fees, upgrades, downgrades, discount % per plan, etc.)
• Ancillary Revenue Assumptions (the model provides inputs for 3 different ancillary revenue sources)
• Payroll, OpEx & CapEx Assumptions
• Forecast Scenarios
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Assumptions & Valuation Multiples

Outputs:
• Monthly Operating Budget & Budget summary per Year
• Budget vs. Actual Variance Analysis
• 10-Year Financial Forecast (3 Statement Model)
• Breakeven Analysis, KPIs and Financial Ratios (Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
• Performance Dashboard
• Business Valuation (incl. Enterprise & Equity Value, DCF, Terminal Value, Unlevered & Levered Cash Flow, Project Return Metrics & Sensitivity Analysis)
• Investors (PE) Distribution Waterfall Model
• Professional Executive Summary

Help & Support
Committed to high quality and customer satisfaction, all our templates follow best-practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
Whether you have no experience or are well-versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you experience any difficulty while using this template and cannot find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.