When Sally Upsells Harry is an actual case from the Financial Modeling World Cup 2021, Stage 12 (December 17-20) competition. The case is dealing with financial planning for a SaaS company (software as a service).

Case description:

Sally founded a SaaS business that sells monthly software subscriptions. After two years of focusing on growing the company and adding new subscribers, she implemented a price increase on January 1, 2022, and plans to forecast marketing spend by channel along with the subscriber acquisition capacity of each channel. Sally has asked for a high-level P&L (through EBITDA), subscriber metrics, and other KPIs for the past two years and a five-year forecast with the changes she wants to implement.

Sally is worried about a near-term increase in churn as the installed base of subscribers is used to paying a lower price due to the recent price increase. However, she believes that churn will normalize after the installed base transitions to the higher price. Furthermore, Sally plans to forecast marketing spend by channel along with the subscriber acquisition capacity of each channel for the remainder of the model (2022-2027). Sally has asked for a high-level P&L (through EBITDA), subscriber metrics, and other KPIs for the past two years and a five-year forecast with the changes she wants to implement.

The downloadable file consists of the following:
–Task: PDF file with Case Materials; PDF file with Questions; Excel file with Case Assumptions
–Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold

This model awarded 350 regular points + 50 extra points, while the whole 2h Stage allowed to earn 1,200 points in total.

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