Financial model for SaaS showing a 10-year projection overview.

Financial Model, Online Businesses, SaaS

10-year Financial Projections, Annual Recurring Revenue (ARR), Average Revenue per User (ARPU), Break-Even, Budget, Budgeting, Business Valuation, Cash Flow Projections, CFO, Churn, Cost Projections, Customer Acquisition Costs (CAC), Customer Lifetime Value, Dashboard, DCF Model, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Financing, Forecast, Forecasting, Investment Multiple, Investor Cash Flows, Investors, IRR (Internal Rate of Return), KPIs (Key Performance Indicators), Management, Monthly Recurring Revenue (MRR), NPV (Net Present Value), Payback Period, Private Equity Waterfall Distribution Models, Return on Invested Capital (ROIC), Revenue Projections, Scenario Analysis, Sensitivity Analysis, Startup Financial Models, Subscribers, Subscriptions, Terminal Value, Three Statement Model | Three Financial Statements, Users, Uses and Sources of Funds, Variance Analysis

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 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 in 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.

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.

No matter if 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, however, experience any difficulty while using this template and you are not able to 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.

Reviews

Excellent model better support

By Michele Di Carlo on September 9, 2021 at 18:15

This is the perfect model for a suscription based saas model is perfect for it and the its very simple to use more over if you have any questions Giorgos responds and provide feed and support in a incredible fast way

Thank you for your feedback.

1732 of 3447 people found this review helpful.

saas model

By Andrew Smith on September 4, 2021 at 21:27

Nicely laid out model. The instructions are limited, as such make it difficult to determine what effect inputs have on the outcomes.

Could improve monthly costs to be more flexible.

Otherwise I am happy to recommend for a startup SAAS business.

1803 of 3548 people found this review helpful.

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By GL Consulting on September 6, 2021 at 08:36

Hi Andrew,

Thank you for the review and the feedback on the model. We value our customers’ opinion and will try to improve the model by adding more detailed instructions and adjust the monthly costs to be more flexible.

Kind Regards

Giorgos Lampropoulos
Founder & CEO

1709 of 3423 people found this review helpful.

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