SaaS Startup Financial Model - Enterprise and User (Excel XLSX)

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, 2 different revenue sources (Monthly Subscriptions and Annual Enterprise License), 4 different subscription options, subscriptions upgrades & downgrades, Direct & Indirect 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, is fully customizable, and has a dynamic functionality allowing users to select the desired forecasted Years (1 to 10).

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

Model Structure:

Customer Acquisition
•  Revenue is calculated based on the number of subscribers.
•  Customer new sign-ups come from 2 different sources of traffic – Paid and Organic

Revenue Assumptions
•  3 Pricing Tiers (Monthly Subscriptions packages)
•  Enterprise License sold with an annual (12-month) contract
•  5 different subscription periods with the corresponding prepayment discounts (applied to Monthly Subscriptions)
•  Upgrades or Downgrades between Subscription and Enterprise License Packages
•  Non-recurring Revenue calculation (Set up fees per New Customer)

Revenue Calculation
Model calculates revenue per Service package and subscription period.
Analysis for each package includes:
•  Total customers (new, expanded, upgraded, downgraded, churned)
•  Customers per subscription period
•  Renewal waterfall per subscription period
•  Monthly Recurring Revenue (MRR) and Monthly Cash Basis Revenue per subscription period
•  Monthly Deferred Revenue calculation

Cost Assumptions
•  Cost of Services per Customer (Recurring & Non-Recurring)
•  Payroll per Department supported by Cohort analysis for Starting Date and Year for each employee
•  Operating Expenses

Financing & Capex
•  Uses & Sources of Cash analysis – Financing through Equity & Debt
•  Fixed Assets Analysis with the corresponding Depreciation Schedule.

Output Reports:
•  Monthly Profit & Loss Statement Summary per Year
•  Monthly Budget and Actual Reports
•  Budget vs. Actual Variance Analysis
•  Dynamic 10-Year Forecast (3 Statement Model)
•  Annual Direct Cash Flow
•  Breakeven Analysis
•  KPIs and Financial Ratios (Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
•  Dynamic Dashboard with key metrics & charts analyzing business performance on an annual basis.
•  Business Valuation (incl. Enterprise & Equity Value, DCF, Terminal Value, Unlevered & Levered Cash Flow, Project Return Metrics & Sensitivity Analysis)
•  PE Distribution Waterfall Model, including an 80/20 split and a GP catch-up assumption.
•  Exit Year 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.

The template provides a comprehensive breakeven analysis and detailed payroll projections, ensuring accurate financial planning. It also includes an executive summary with key metrics and charts for quick insights into business performance.