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
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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.
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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.