Financial Model for Mobile App | Mobile App Business Plan

This Financial Model Template in Excel provides an easy way to forecast the financial performance for a Mobile App or similar Software. It focuses on revenues from paid downloads, in-app purchases, subscriptions and advertisement income

Financial model for mobile apps
, ,
, , , , , , , , , , , , , , , , , ,

Screenshots refer to the Power Version (10-Year Forecast Period with Sensitivity Analysis)

Updated Version 6.0.1

The mobile app financial model in Excel provides a comprehensive financial plan template for a mobile app business or similar software development project. It is a comprehensive Startup Model but could also be used for an existing app business.

The model templates focuses on five main sources of revenues such as revenues from paid app downloads, in-app purchases, subscription revenues, advertisement income from pay per click or pay per impression campaigns. All these revenue streams are linked to the expected growth in new app installs and active users. Increasing or lowering growth impacts active users.

The model also calculates the commissions to be paid to the app store owners. The objective of the model is to provide a key financial planning tool to support fundraising based on a solid financial plan and allowing investors and founders to obtain a deep understanding how the economics of their app businesses work. The Excel model template provides monthly and yearly projections over a period of 5 or 10 years (depending on model version). The financial model can serve as a basis for a Mobile App business plan.

See an updated walk-through of the financial model template here:

 

The Excel model template provides the following:

  • Executive Summary
    • Financial Overview
    • Project metrics (IRR, NPV, Payback, Time to Break-Even, required funding, expected total profit, investment multiples)
    • Calculation of required funding (levered, unlevered without or with cash reserve)
    • Uses and sources of funding table
    • Investors – equity stakes and participation in equity investment
    • Pre- and Post Money Valuation Analysis
    • Key metrics by investor (IRR, required investment, expected profit investment multiple)
    • Key assumptions
      • Investment period
      • Exit Valuation (various methods available including EV/Sales, EV/EBITDA, EV/Active User, EV/App Installs, EV/Subscriber valuation multiples)
      • Traffic estimations from organic and paid app downloads
      • Conversion rate assumptions
      • Revenue estimations by source of revenue
      • Subscription assumptions
      • Churn assumptions
      • Employee assumptions (FTEs and Salary levels)
      • Cost assumptions
      • CAPEX and Software Development Costs (activated or expensed)
      • Net Working Capital assumptions
      • Dividend assumptions
      • etc.
    • Calculation of Customer Acquisition Costs (CAC)
    • Key Charts and Graphs
    • Sensitivity tables and tornado diagram which simulate effect of change in key business value drivers (only included in Pro and Power Versions)
    • Paid-Ad Campaign Profitability Analysis (only included in Pro and Power Versions)
    • Break-Even Analysis – required active users or app installes (only included in Pro and Power Versions)

 

  • Operating Model (Monthly)
    • Forecasted monthly App Downloads and App Installs depending on traffic source (organic or paid ads)
    • Monthly allocation of organic traffic (either manual estimation or monthly step increase model)
    • Breakdown by app store
    • Monthly churn (app deinstalls)
    • Monthly App Downloads either Free or Paid
    • Conversion rates from user to active user, from active user to subscribers
    • Monthly revenue projections for
      • Paid App Downloads
      • In-App purchases
      • Subscription revenues
      • Advertisement revenues (PPC)
      • Advertisement revenues (Impressions)
    • Monthly cost budget
      • Direct costs
        • Three different ways to estimate direct costs
        • Calculation of commissions paypable to the App Stores
      • OPEX
        • Employee costs
        • Marketing Budget for Paid Ads
        • Various fixed costs and variable cost positions available
    • Monthly financial statements
    • Monthly free cash flow calculation (unlevered and levered)
    • Payback and time to break-even calculation
    • Calculation of funding required (based on monthly cash flows)

 

  • Subscriptions
    • Detailed modeling of monthly subscription refenues
    • 3 Tier Subscription Model
    • Discounts for yearly, 6-month or 3-months subscriptions
    • Churn and Renewal modeling
    • Calculation of commissions payable to app stores
    • Revenue recognition – cash based accounting or deferred revenue recognition
    • Calculation of Monthly Recurring Revenues (MRR)
    • Calculation of Average Revenue per User (ARPU)

 

  • Yearly financials
    • 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
    • Financial ratios forecast (growth, profitabiltiy, leveverage, liquidity ratios)
    • Free Cash Flow Calculation (Unlevered and Levered)
    • Forecasted Business Valuation
    • Investor cash flows (based on cash flows – adjustable – or cash in/cash out calculation)
    • Cash Flows per investor (as per their equity stakes and their share of equity investment)

 

  • Lifetime Value (only Pro and Power Version)
    • User Lifetime Value Analysis and breakdown by source of revenue

 

  • Break-Even Analysis (only Pro and Power Version)
    • Calculation of required app installs and active users to achieve break-even

 

  • Printer-friendly layout including charts and graphs
  • Model comes with instructions on a do-it-yourself basis

 

The financial model uses a sophisticated 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.

Our customers love this model. What our customers say:

Impressive, thorough, and just what we needed!
Have done a lot of similar models for SaaS Apps on the web. This model is out-of-the-box ready to go. There are minimal tweaks needed for our purpose. For the most part - localization. Really impressed at how much thought went into this. Just about to make a purchase and will share more feedback on the sheet.
mobile app financial statements
very helpful and well detailed thank you

 

Updated Version 6.0.1 of the Mobile App Financial Model is available for download in three versions: 

  • Basic: 5-Year Forecast  Period (does not include Sensitivity Table, Customer Lifetime Value Analysis nor Break-Even Analysis)
  • Pro: 5-Year Forecast Period (includes Sensitivity Tables)
  • Power: 10-Year Forecast Period (includes Sensitivity Tables)
  • FREE PDF Demos which outline the model structure for each version

Filetype: .xlsx

Please select the model version:

Add to wish list
Download Excluding 0% tax

Users who purchased Financial Model for Mobile App | Mobile App Business Plan, also purchased:
E-Commerce 3 Statement Financial Projection Model with Valuation
Add to wish list
Purchase Excluding 0% tax
Startup Business Plan – General Trading
Add to wish list
Purchase Excluding 0% tax
SaaS Financial Model
SaaS Financial Model
Add to wish list
Purchase Excluding 0% tax

Reviews

  • Avatar Good Stuff!

    The model itself (xlsx) is just as robust as the pdf preview. It’s the real deal! Very helpful, very thorough. Cuts down the time I have to spend a lot.

    1 of 2 people found this review helpful.

    Help other customers find the most helpful reviews

    Did you find this review helpful? Yes No

  • Avatar Impressive, thorough, and just what we needed!

    Have done a lot of similar models for SaaS Apps on the web. This model is out-of-the-box ready to go. There are minimal tweaks needed for our purpose. For the most part – localization. Really impressed at how much thought went into this. Just about to make a purchase and will share more feedback on the sheet.

    1 of 2 people found this review helpful.

    Help other customers find the most helpful reviews

    Did you find this review helpful? Yes No

  • Avatar mobile app financial statements

    very helpful and well detailed
    thank you

    1 of 2 people found this review helpful.

    Help other customers find the most helpful reviews

    Did you find this review helpful? Yes No

  • Write a Review

    Get these templates too for a discount!

    Price: $150.00

    This is a collection of financial model templates for businesses in the Information technology Industry and its related sectors.

    Add to wish list
    Add to cart Excluding 0% tax

    Price: $315.00

    A package of financial models for Software as a Service (SaaS) businesses and its related sectors in Excel. This bundle…

    Add to wish list
    Add to cart Excluding 0% tax

    Price: $69.90

    This bundle of financial model templates provides you a package of relevant SaaS, eCommerce and Online Marketing financial model templates

    Add to wish list
    Add to cart Excluding 0% tax