Web/Mobile App Financial Projection 3-Statement Model (Excel XLSX)

VIDEO DEMO

BENEFITS OF DOCUMENT

1. Preparation of a 5-year financial projection on a monthly basis for a new or existing Web/mobile application development company.

DESCRIPTION

This product (Web/Mobile App Financial Projection 3-Statement Model) is an Excel template (XLSX) with a supplemental Excel document, which you can download immediately upon purchase.

A Financial Projection 3 Statement is vital for Web/Mobile App startups and existing businesses. It forecasts income, expenses, and cash flows, enabling informed decision-making and strategic planning. It aids in securing funding, setting realistic goals, and ensuring financial sustainability. By analyzing operational costs and revenue streams, it guides budgeting and pricing strategies. Accurate projections empower businesses to adapt to market changes, improve resource allocation, and enhance financial stability. This tool attracts investors, supports growth initiatives, and aligns financial strategies with business objectives, making it indispensable for both startups and established Web/Mobile App ventures.

PURPOSE OF MODEL
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 developing mobile or web applications. The model allows the user to model up to 15 different revenue generating apps split across the following 3 types:
•  Free apps – generating revenue by displaying adverts within the app;
•  Subscription apps – users pay a monthly or annual fee to access content, services or experiences within the app;
•  One-time payment apps – users pay once to download the app and use all of its functionality.

The model follows best practice financial modelling principles and includes instructions, line item explanations, checks and input validations.

KEY OUTPUTS
The key outputs include:
•  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 downloads by month and app across the above 3 app types.
Gross profit by income source.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.
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:
•  Free app revenue including:
Download volume
Attrition rate
Usage (sessions per month, minutes per session)
Ad frequency and pricing
•  Subscription app revenue including:
Download volume;
Free trial to purchase conversion rate;
Monthly, annual subscription mix;
Renewal rates;
Subscription prices.
•  One-time purchase app revenue including:
Download volume;
Free trial to purchase conversion rate;
App 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'.
System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  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):
Apps – 15 apps (5 x free, 5 x subscription and 5 x one-time payment apps);
Variance costs – 15 categories (1 for each app)
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.

Source: Best Practices in Integrated Financial Model, Company Financial Model, Business Plan Financial Model, Mobile App Excel: Web/Mobile App Financial Projection 3-Statement Model Excel (XLSX) Spreadsheet, Projectify