Finance & AccountingBeginner 1 to 2 hours

Build a Simple Revenue Model

Forecast 12 months of revenue for a subscription business using drivers.

The Scenario

A SaaS startup has 500 paying customers at R299/month. They add roughly 40 new customers per month and lose 15 (churn). The CEO wants a 12-month revenue forecast.

The Brief

Build a driver-based revenue model. Use new customer additions, churn rate, and ARPU to forecast monthly revenue for 12 months.

Deliverables

  • A 12-month table: Opening Customers, New, Churned, Closing Customers, ARPU, Monthly Revenue
  • The implied monthly churn rate and annual churn rate
  • One scenario: what if churn drops from 15 to 10 per month? Show the revenue impact by month 12

Submission Guidance

Revenue = Customers × ARPU. But customers compound — losing fewer customers each month has a dramatic effect by month 12. Show this compounding.

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