Long Range Financial Modeling

Result: Company on track to achieve financial targets by 2025 as of last forecast cycle in Q3 2023.

Established Goals: Company B is trying to achieve $50M in revenue by 2025 at 10% profitability. They are currently forecasting revenue of $25M for 2023 and breakeven by EOY. Their product mix consists of 50% high gross margin SaaS subscription revenue and 50% low gross margin Payments and Transactional revenue.

Analyzed Status Quo: We determined the long term financial outlook based on current revenue trends and operations. This allowed us to understand the gaps to high level financial targets that needed to be solved.

Identified & Analyze Recommendations:

Drive Revenue Growth through Payments - this space has higher growth potential but lower gross margins and would require reducing operating expense. The foundation of the company operating model was built on a SaaS model so this would require significant restructuring.

Increase Price - Build product functionality to justify higher price point, risk of losing customers to lower priced competitors

Drive growth through partnerships - revenue share with partners generates 100% gross margin though lower gross revenue than internally building features.

Move into adjacent vertical - build or buy functionality for short term rental property management. - not advised due to mix of revenue coming from payments creating profitability challenges.

Choose optimized model: Created operating plan and built budget to define financial requirements to successfully execute.