Financial Modeling SaaS

Financial Modeling for SaaS

Building a financial model for a Software as a Service (SaaS) company typically requires creating a monthly model that forecasts users, subscriptions rates, churn rates, and average revenue per user (ARPU). From there, it resembles more of a traditional three-statement model and includes operating expenses, as well as SaaS specific metrics such as customer acquisition cost (CAC), customer lifetime value (LTV), the LTV/CAC ratio, and payback period. In addition, the models typically include a discounted cash flow (DCF) valuation, sensitivity analysis, and charts and graphs.


Additional Questions and Answers

CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.

In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

  • What are the types of financial models?
  • What is sensitivity analysis?
  • What is bookkeeping?
  • What are the most common valuation methods?

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

financial modeling questions and answers

Analyst Certification Program

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