Financial Model for Mobile App | Mobile App Business Plan

Financial model for mobile apps

Updated to Version 5.3

The mobile app financial model provides a comprehensive financial plan template for a mobile app business such as a startup or an existing app bueinss. The model includes four sources of revenues such as revenues from paid downloads, in-app advertisement, in-app purchases and subscriptions while also counting for the commissions to be paid to the app stores. The objective of the model is to provide a key financial planning tool to support fundraising based on a solid financial plan and allow investors and founders a deep understanding how the economics of such app business works. The Excel model provides monthly and yearly projections over a period of 5 or 10 years, depending on model version. The financial model serves as the basis for a Mobile App business plan.

 

See a walkthrough of the model here:

The Excel model template provides the following:

  • Executive Summary with key charts and information
    • Financial Overview
    • Project metrics
    • Required funding, uses and sources of funding
    • Investor analysis
    • Sensitivity tables (only included in Full version with 10 Year cash flow forecast)
    • Key Assumptions with respect to growth, costs and all the parameters for the monetization of the app
    • Charts and graphs
  • Revenue Streams considered
    • Paid App Downloads
    • Advertisement revenues
    • In-App Purchased
    • Subscription revenues
  • Forecast App Metrics
    • Traffic estimations based on organic and paid traffic sources
    • Forecasted App Downloads and App Installs
    • Forecasted conversion to active users and subscribers
    • Forecasted Average Revenue per User (ARPU)
    • Monthly App Downloads either Free or Paid
    • Monthly Recurring Revenues (MRR)
    • User Lifetime Value Analysis and breakdown by Source of revenue
    • Customer Acquisition Costs
  • Costs include
    • Acquisition costs via Cost per Click (CPC) estimate to get users to download the app
    • Commissions for the App Store
    • Employee costs
    • Marketing Budget for Paid Ads
  • Monthly and Yearly Financial Projections
    • Income Statement
    • Standardized Income Statement
    • Balance Sheet
    • Cash Flow Statement
    • Debt schedule with two layers of financial debt
    • Fixed Asset Schedule CAPEX and depreciation
    • Software Development Costs, Intangible Assets and Amortization
    • Forecast of all relevant financial ratios
  • Detailed Subscription Model
    • 3 Pricing Tiers
    • 4 Payment Schedules (Monthly payment, 3 month upfront, 6 month upfront, 1 year upfront
    • (Monthly and Yearly) – Income Statement, Balance Sheet, Cash Flow Statement
    • Switch to choose revenue recognition model – cash or deferred revenue recognition
  • Free Cash Flow Calculation
    • Includes Holding Period and Exit EV/EBITDA Multiple
    • Free Cash Flow to Firm
    • Free Cash Flow to Equity
    • Cash in Cash out calculation based
  • Project Metrics
    • NPV Calculation
    • Project IRR
    • Project Equity IRR
    • Profit and Investment Multiples
    • Calculation of Required Project Funding
    • Payback period
    • EBITDA Month of Breakeven
  • Financing Structure
    • Table with Uses and Sources of Funds
    • 2 Layers of Financial Debt
    • Calculation of required Equity Financing
  • Investor Metrics
    • Equity financing model with stakes allocated to founders and investors
    • Pre- and Post Money Valuation
    • Calculation of separate investor IRRs depending on Equity Stake and investment required
  • Sensitivity analysis
    • Flexible sensitivity analysis model which can be run for each of the IRRs provided in the model
    • Tornado diagram with quick overview of relevant key value drivers
    • Sensitivity table as per the relevant value drivers
  • Print-friendly layout including charts and graphs
  • Sheet with instructions

The financial model uses a bottom up approach to financial planning and allows to obtain a deep and solid understanding how the economics of a mobile app business works. Furthermore all investor relevant metrics are included and investors will appreciate having full transparency on the financial plan for a mobile app business.

 

The Current Version of the Financial Model is 5.3. The model is availalbe in the following two versions

  • Light: Excel Model 5-Year Cash Flow Forecast, no sensitivity tables
  • Full: Excel Model 10-Year Cash Flow Forecast, including sensitivity tables
  • FREE PDF Demos are available for two versions

Filetype: .xlsx

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Executive Summary 5 Year Version

Mobile App Financial Model Summary 5 Year Business Plan
Mobile App Financial Model Summary 5 Year Business Plan

 

Executive Summary 10 Year Version

Mobile App Business Executive Summary
Mobile App Business Executive Summary
Mobile App Sensitivity Analysis and Key Value Drivers
Mobile App Sensitivity Analysis and Key Value Drivers
Mobile App Growth and Cost Estimations
Mobile App Growth and Cost Estimations
Mobile App Assumptions
Mobile App Assumptions
Mobile App Income Statement
Mobile App Income Statement
Mobile App Balance Sheet
Mobile App Balance Sheet
Mobile App Cash Flow Statement
Mobile App Cash Flow Statement
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Summary This Financial Model for Mobile Apps provides an easy way to forecast the financial performance for an App sold in the App Stores and deriving revenues from paid downloads, advertisement and subscriptions.
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