SaaS Model with Sensitivity Drivers: 5-Year Template
Latest Updates: monthly and annual three statement model added as well as a capitalization table.
This financial model was built for any SaaS / mobile app / recurring revenue business that has monthly pricing. The template goes out for 5 years and after all assumptions are entered the output is a monthly and annual pro forma, DCF Analysis, and annual financial summary along with plenty of visualizations for advanced SaaS metrics.
Up to five pricing tiers are available. The user can define the percentage of new paid signups that fall into each tier over time as well as the expected traffic over time, monthly growth of traffic each year, and conversion of traffic to a free pool if needed prior to paid signups. The free pool can be bypassed by simply zeroing out those percentages. You can also account for some percentage of direct traffic converting to paid without first going through the free pool / conversion path.
Each pricing tier has its own average monthly churn rate as well.
Operating expenses are detailed and have plenty of slots for R&D, S&M, and G&A as well as cost of goods sold (based on a per user per month cost and direct percentage of revenue). Initial startup costs and capex can also be defined in their own schedules.
One of the unique parts about this SaaS model is the sensitivity analysis. The user can choose base assumptions and then with a dropdown menu the primary assumption drivers can be set to five different levels of sensitivity (including the ‘base’ option).
Assumptions that can be adjusted with the sensitivity logic include:
Traffic Growth Rate
Conversion (traffic to free)
Conversion (free to paid)
Churn Rate (all tiers)
Price (all tiers)
For example, you can see what happens if the traffic growth is greater than or less than the base assumption or if conversions are different or price or some combination of factors. The idea is that the user can create multiple results by adjusting these dropdowns. Each level is a 15% change from the base.
Advanced KPIs are displayed and include LTV, CaC, LTV to CAC ratio, and month to pay back the CaC.