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

Upcoming Courses

IN-PERSON

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.

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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 & Register

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

Emma D

April 17, 2024

Insightful session - Rob is very enthusiastic and helped me understand a lot of nuanced concepts

Johannes S

April 12, 2024

Pre-course work: – Well-structured videos and short enough to digest important info – Could promote more tasks to be done in Excel Instructor: – Very charismatic and frequently made sure that we are on the same page – Could interrupt more if the discussion veers of schedule Course materials: – Models are very close to actual use-cases – PDF could be more comprehensive (would also benefit if used as single-source of info)

Christian B

April 7, 2024

PC Fast Track: Financial Modeling

This course was very informative and efficient. I had a great experience and learned a lot. The instructor was a great resource and an amazing teacher.

Clement C

April 5, 2024

Serge did an amazing job! He was very interactive and it was easy to follow his explanations. I also like the class materials that was shared, which was quite clear and easy to follow. Also, covering the Nomura materials was a great idea as it made the whole session much more relevant to our day to day job. Overall, I'd recommend this training. Thank you

Clara L

April 5, 2024

Incredibly insightful content delivered in a very comprehensive way. This was very helpful and will be useful going forward. Thank you to Serge!

Ethan T

March 22, 2024

PC Applied Excel

Great course. It went through at a very good pace.

Kelsey E

March 22, 2024

PC Applied Excel

Darshan is a great teacher. He can speak to all experience levels of excel and keeps the information relevant. Great course!

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.