PC Software Analysis & Financial Modeling

Description

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.

What you will learn

Day 1 - 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

Day 2 - 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

Further information

Full course outline

Scheduled dates

Provider:: Training The Street
Duration:: 2 Days
Locations:: Atlanta, Chicago, Dallas, Dubai, El Segundo, Frankfurt, London, Los Angeles, New York, San Francisco, Seattle Area (Bellevue), Singapore, Toronto, Washington Dc

Contact Information

Training The Street

275 Madison Avenue
12th Floor, Suite 1201
New York
NY 10016

+1 800 887 1320 (Toll-free, U.S.) +1 704 927 9688 (Outside U.S.)
Email
Website

Locations

Very helpful and insightful
Jonathan P17 Sep 24
Josh was succinct, knowledgeable, energetic, and deeply engaging. He balanced raw curriculum with 'applied' insights well and his personal anecdotes made the learning feel more real. I took the course to refresh my modeling skills - having recently joined a growth equity practice after a few years as a software founder / operator. His annotations on screen were particularly masterful and reminded me of why I used to watch Khan Academy. I'd highly recommend this course to anyone looking to go 0-90% on software in 2 days. I would take / pay for day 3, but most likely consume the curriculum asynchronously. There was a lot of material to get through and Josh did a great job making tradeoffs between going deep and wide. If I don't study this material again, I estimate that I'm ~50-75% better at modeling / understanding underlying drivers for the 3 statement model.
Erik K13 Sep 24
Great course. Sunil did a great job of ensuring that everyone in the class was on the same page regardless of background, computer type, etc. The content was a good high-level overview of software analysis and did a great job informing key metrics used for evaluating companies in the space. A few things that would have been even more helpful: 1) Start the course with a high-level overview of what we will be covering and when--let us tell you what sections will be the most useful, 2) include a sections on different business models within software--we focused only on SaaS but it would have been great to get exposure to what else we can expect to see and ideas for how to handle it. Thanks, Sunil! It was a lot for two days but worth the time.
Christina B18 Oct 23
Michael B16 Sep 24