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

IN-PERSON

San Francisco

10/16/2023 – 10/17/2023

Browse Our Courses

Upcoming Courses

IN-PERSON

San Francisco

10/16/2023 – 10/17/2023

Browse Our Courses

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.

Select Dates

Course PDF

Days 1
Day 2

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

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

Schedule

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

Prerequisites

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

How Do You Like To Learn?

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.

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

Select Dates

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 info@trainingthestreet.com for more information.

See what our students say

Parth S

October 1, 2023

PC Fast Track: Financial Modeling

Christian is amazing, great energy and very easy to follow along.

Ho L

October 1, 2023

I think the practical elements of the courses were really helpful. Also having johnny in there to answer questions as well was really good. The overall pacing was well done too, not too fast but not too slow either that we are just waiting around

Ahmed B

September 29, 2023

PC Core Comprehensive

Van was amazing. Super knowledgeable and helpful. Answered every question with patience and consideration of the students.

Qasim M

September 29, 2023

Overall, the course provided a very comprehensive insight into accounting and financial modelling. The instructors were very good and had excellent knowledge, teaching the material very well. The most useful part of the course for me were the practical examples we'd do in class and the real life practice models. The only feedback I would provide is for the use of monitors which would help with the modelling and also part of the course on building M&A marketing materials (incl. PPT and presentation skills).

Harry R

September 29, 2023

Matthew and Amit are very experienced, helpful and thorough trainers. I have learnt a lot in such a short period and feel well prepared to begin my career in finance. I would say there is quite a lot to get through in such a short period, which can be overwhelming but was just about manageable!

Lincoln W

September 29, 2023

Enjoyed the course, had no sweat following the difficult content as Jung made it a piece of cake by step-by-step instructional teaching. The learning experience is also full of attention catching anecdotes that I felt no difficulty focusing.

Vinith M

September 29, 2023

Jung was amazing. Johnny was super helpful during the sessions to fix our models. This was a superb learning experience.

Camille H

September 29, 2023

good combination of concepts and hands on practice helpful hands on experience in excel Could use more background explanation for beginners

Lorenza B

September 28, 2023

I think the course overall is very useful. However, as a beginner, I found it a bit fast paced.

Victoria D

September 27, 2023

Felix is the best instructor ever and connie is such a great help. Very good

Unlock your career potential

Training The Street has been teaching the biggest finance firms for over 20 years. To help unlock your career potential, we offer certificates to provide the recognition you deserve.

After you finish your course, you will receive a certificate which can be easily added to your LinkedIn profile.