Software Industry Analysis & Financial Modeling

Learn the financial essentials of software industry analysis, including customer retention metrics, software-specific accounting issues, and software company modeling. You’ll build a sample software company model to show how customer analysis and retention metrics integrate into a three-statement financial model.

Upcoming Courses


San Francisco

10/16/2023 – 10/17/2023

Upcoming Courses


San Francisco

10/16/2023 – 10/17/2023

Learn techniques we teach around the world...

Learn Key Software Industry Financial Modeling Techniques

Utilizing the same case study based approach delivered for our corporate clients, this course provides hands on training focused on the software industry.

Participants will explore the fundamentals of software analysis, including customer retention metrics, software-specific accounting issues, and other considerations important to building and understanding software models.  This course is highly focused on developing key Excel skills while still introducing key industry fundamentals and financial metrics that are unique to the software industry.

Led by our experienced instruction team of former practitioners, you get a unique blend of industry insight combined with a passion for teaching.  The average TTS instructor has been part of the team for 8.5 years.

Software Industry Analysis

Key Fundamental Software Industry Topics:

  • Overview of software income statement analysis and the importance of understanding unit economics beyond consolidated group performance
  • Discuss and evaluate ACV and MRR and discuss key software KPIs including logo, gross dollar and net dollar retention
  • Build customer-level cohort analysis including cleaning, filtering, and analyzing data using text functions, Pivot tables and Logic+math functions (SUMIF, COUNTIF, ROUNDUP and complex Nested IFs) in Excel
  • Review Lookup functions including VLOOKUP, HLOOKUP, LOOKUP, INDEX, and MATCH
  • Build complex nested statements to calculate churn, retention, upsell analysis

Software Industry Financial Modeling 

Key Software Industry Financial Modeling Topics:

  • Introduce LTV and CAC analysis and calculate metrics using both pen-and-paper and Excel exercises
  • Differentiate between bookings, billings and revenue and discuss the importance of deferred revenue and deferred compensation expenses in accrual accounting
  • Discuss capitalization of certain costs including internal- and external-use software and certain customer acquisition costs (CAC)
  • Build the “World’s Easiest Software Company” model to show how customer analysis and retention metrics integrate into three-statement financial model

What Does A Day Look Like?

Whether you join us in-person or virtually, the classroom is a combination of micro-lectures and hands-on exercises that ensure retention levels are high and students stay engaged.  You’ll use some of the most innovative Excel based learning tools available, providing instant performance feedback as well as the opportunity for as many “reps” as you need to be “desk ready”.

Who Is This Course For?

  • Firms that need to get small groups or individuals up to speed on the software industry (new, lateral, or off-cycle hires)
  • Financial services professionals looking to learn the intricacies of the software industry
  • Those looking to transition into the software industry and seeking a better understanding of how to model and understand the software industry
What Does A Day Look Like?
Course Details

Course Details

What’s Included

  • Instructor-led classroom training
  • Ongoing instructor support
  • One-year online access to course materials, Excel files, and related self-study courses for additional reference and review
  • Excel model template
  • Excel model solution


9:00 am to 5:00 pm each day with an hour lunch around noon and shorter breaks throughout the day.


Fundamental knowledge of financial accounting: TTS recommends our self-study book, Fundamentals of Financial Accounting and Analysis.  For additional information please visit

How Do You Like To Learn?

In-Person Training

Flexible Learning Options
Our courses are available in both in-person or virtual classroom formats. If you learn better in your own space or traveling isn’t convenient, virtual is great solution. Either way, you get the skills and support you need to succeed.

Virtual Training

Course Pricing

$2,300 USD (2 days)*

* register at least 30 days in advance

Standard registration inside 30 days:
$2,500 USD (2 days)

– Group rates available
– Discounts offered to existing clients

Cancellation Policy

Cancellations up to 14 days before the workshop will receive a full refund. Cancellations within 14 days of a course will not be refunded. TTS reserves the right, at its sole discretion, to cancel a course. If TTS cancels a course, payments are refunded in full.

Questions? Please contact for more information.

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