Financial Forecast Model

Instructions

* General guidelines

This model is intended to be a high-level plug-and-play forecasting tool

Most assumptions are common P&L inputs; this model will allow those inputs to project a BS an
As an example, each major line item has been broken down into supporting data, but you do no

1 Input historical actual data

Copy and paste or link data from IS, BS, and CF into cells highlighted in yellow in columns C:I
Column I should contain data from the most recent quarter close
Check that balance sheet ties for all actual columns in row 71

2 Update income statement forecast assumptions

All forecast assumptions should be input into cells highlighted in yellow in columns T:X
Revenues are input as a Y/Y growth rate % (you can manually input a $ amount in the manual
COGS are input as a % of revenue (you can manually input a $ amount in the fixed line as an a
Operating expenses are input as a % of revenue (you can manually input a $ amount in the ma
Other income/(expense) is input as a $ value
Tax expense is input as % of pre-tax income
Minority interest is input as a $ value

3 Update balance sheet forecast assumptions

All forecast assumptions should be input into cells highlighted in yellow in columns T:X
Most line items are automatically forecasted based on the assumptions described in column P
Long-term debt is input as a $ value
Check that the balance sheet ties for all forecast columns in row 71

4 Update cash flow forecast assumptions

All forecast assumptions should be input into cells highlighted in yellow in columns T:X
Some line items are automatically forecasted based on changes in the balance sheet as describ
Depreciation is input as a % of revenue
Amortization of intangibles is input as a $ value
Amortized software development is input as a % of revenue
SBC (stock based compensation) is input as a $ value
Capital expenditures are input as a % of revenue
Capitalization of software development is input as a % of revenue
Business acquisition and investment equity are input as a $ value
Purchase of shares is input as a $ value
Other items are input as a $ value

5 Reuse for future periods

The file is a rolling forecast and is always projecting 5 quarters out from the prior quarter close
Shift all historical data within the yellow highlighted cells so that column I has the data from th
Continue to use columns T:X to project the next 5 quarters

ose inputs to project a BS and CF statement

upporting data, but you do not have to use all of them (or you can rename them)

ed in yellow in columns C:I

mptions

ellow in columns T:X

ut a $ amount in the manual adjustment lines as an alternative)
ount in the fixed line as an alternative)
y input a $ amount in the manual adjustment lines as an alternative)

ellow in columns T:X

tions described in column P

ellow in columns T:X

the balance sheet as described in column P

from the prior quarter close

olumn I has the data from the most recent quarter close

[Company] Financial Forecast

ver. 1.0
$ Thousands

PQ -2
Actual

PQ -1
Actual

PQ
Actual

CQ
Forecast

Income Statement
Revenue
Recurring Service
Consulting
Support
Partnerships
Other/Manual Adjustments

8,300
5,800
600
1,100
800

11,600
8,100
800
1,600
1,100

12,600
9,000
800
1,700
1,100

13,900
9,800
1,000
2,000
1,100

COGS
Hosting Fees
3rd Party Fees
Customer Support
Implementation
Fixed

3,100
1,500
700
600
300

3,900
1,800
900
800
400

4,400
2,100
900
1,000
400

4,570
2,224
973
973
400

Gross profit

5,200

7,700

8,200

9,330

Operating expense
Sales & Marketing
G&A
R&D
Other
Manual Adjustments

Err:511
5,500
2,300
4,100
800
-

Err:511
6,300
2,600
4,100
1,000
-

Err:511
7,000
2,800
4,700
1,200
-

Err:511
8,479
2,641
5,282
1,251
-

Operating income

Err:511

Err:511

Err:511

Err:511

Other income/(expense), net

Pre-tax income
Tax expense

(800)

(1,300)

(1,600)

(1,600)

Err:511
-

Err:511
-

Err:511
-

Err:511
-

Minority interest
Net income

Err:511

Err:511

Err:511

Err:511

Err:511

Err:511

Err:511

Balance Sheet
Cash, equivalents, & securities

5,226

[Company] Financial Forecast

ver. 1.0
Accounts receivable
Inventory
Other current assets
Total current assets

PQ -2
Actual
21,000
1,800
Err:511

PQ -1
Actual
8,100
2,200
Err:511

PQ
Actual
7,000
2,100
Err:511

CQ
Forecast
7,722
2,361
15,309

PP&E, net
Software development, net
Goodwill
Intangible assets
Other assets
Investment in equity interests
Total assets

2,600
2,100
1,100
Err:511

2,900
2,000
1,100
Err:511

3,400
2,000
1,200
Err:511

3,817
139
2,000
1,324
22,589

Accounts payable
Accrued expenses
Other current liabilities
Total current liabilities

3,100
34,800
37,900

2,300
37,100
39,400

3,000
37,100
40,100

3,373
41,715
45,088

Long-term debt
Other liabilities
Total liabilities

7,000
2,400
47,300

6,900
2,900
49,200

7,000
3,700
50,800

7,000
3,824
55,912

$ Thousands

Common stock & add'tl PIC

Treasury shares
Retained earnings
Accum. other comp. (loss) income
Total shareholders equity
Total liabilities and shareholders equity

2,400
(9,500)
(7,100)
40,200
Err:511

2,800
3,200
3,200
(16,900)
(26,600)
(36,523)
(14,100) (23,400) (33,323)
35,100
27,400
22,589
Err:511
Err:511
-

Err:511
200
900
100
1,200
(18,600)
20,100
500
-

Err:511
300
400
100
800
12,900
2,600
(800)
-

Cash Flow Statement

Net income
Depreciation
Amortization of intangibles
Amortized software development
D&A
Accounts receivable
Inventory
Other current assets
Accounts payable
Accrued exp. and other liabilities
Deferred taxes

Err:511
300
400
200
900
1,200
600
100
-

Err:511
278
278
(722)
(261)
373
4,615
-

[Company] Financial Forecast

ver. 1.0
$ Thousands

SBC
Excess tax benefits from SBC
Other items
Cash from operating activities
Purchases of PP&E
Software development
Business acq. & equity inv.
Other items
Cash from investing activities

PQ -2
Actual

PQ -1
Actual
-

Err:511
(900)
(100)
(1,300)
(2,300)

PQ
Actual
-

Err:511
(600)
(100)
(700)

Err:511
(800)
(800)

CQ
Forecast
(5,640)
(695)
(139)
(834)

Borrowings (repayments) of LTD, net

Purchase of ordinary shares
Other items
Cash from financing activities
Effect of exch. rate changes on cash
Net (decrease) increase in cash

Err:511

Err:511

Err:511

(6,474)

Cash and equiv. at beginning of period

Cash and equiv. at end of period

Err:511
Err:511

Err:511
Err:511

Err:511
Err:511

11,700
5,226

[Company] Financial Forecast

ver. 1.0
$ Thousands

PQ -2
Actual

PQ -1
Actual

PQ
Actual

CQ
Forecast

Income Statement - Common Size

Revenue

100%

100%

100%

100%

COGS %

37.3%

33.6%

34.9%

32.9%

Gross margin

62.7%

66.4%

65.1%

67.1%

Err:511

Err:511

Err:511

Err:511

Operating expense %
Operating income %
Effective tax rate
Net income %

[Company] Financial Forecast

ver. 1.0
$ Thousands

PQ -2
Actual

PQ -1
Actual

PQ
Actual

CQ
Forecast

Income Statement - YoY Growth

Revenue

82.9%

COGS

63.2%

Gross profit

94.4%

Operating expense
Operating income
Other income/(expense), net
Pre-tax income
Tax expense
Minority interest
Net income

220.0%

CQ + 1
CQ + 2
CQ + 3
CQ + 4
Forecast Forecast Forecast Forecast

14,105
9,860
1,110
2,035
1,100

15,635
10,935
1,200
2,400
1,100

17,000
12,150
1,200
2,550
1,100

18,830
13,230
1,500
3,000
1,100

4,590
2,116
987
987
500

4,956
2,345
1,016
1,094
500

5,175
2,380
1,105
1,190
500

5,778
2,636
1,224
1,318
600

9,515

10,679

11,825

13,052

Err:511
8,463
2,680
5,360
1,269
-

Err:511
9,381
2,814
5,472
1,407
-

Err:511
10,030
2,890
5,950
1,360
-

Err:511
10,733
3,013
6,591
1,506
-

Err:511

Err:511

Err:511

Err:511

(2,000)

(2,000)

(1,800)

(1,800)

Err:511
Err:511

Err:511
Err:511

Err:511
Err:511

Err:511
Err:511

Err:511

44,079

Err:511

34,860

Err:511

26,013

Err:511

17,556

CQ + 1
CQ + 2
CQ + 3
CQ + 4
Forecast Forecast Forecast Forecast
7,836
8,686
9,444
10,461
2,377
2,551
2,706
2,922
54,292
46,097
38,163
30,938
4,240
280
2,000
1,343
62,156

4,709
436
2,000
1,489
54,732

5,219
606
2,000
1,619
47,608

5,784
795
2,000
1,793
41,310

3,396
41,997
45,393

3,645
45,075
48,719

3,866
47,805
51,670

4,174
51,616
55,790

6,500
3,843
55,736

6,000
3,989
58,709

6,000
4,119
61,789

6,000
4,293
66,083

3,200
(46,781)
50,000
6,419
62,156
-

3,200
3,200
3,200
(57,176)
(67,381)
(77,972)
50,000
50,000
50,000
(3,976) (14,181) (24,772)
54,732
47,608
41,310
-

Err:511
282
282
(114)
(16)
23
282
-

Err:511
313
313
(850)
(174)
249
3,078
-

Err:511
340
340
(758)
(155)
221
2,730
-

Err:511
377
377
(1,017)
(216)
308
3,811
-

CQ + 1
CQ + 2
CQ + 3
CQ + 4
Forecast Forecast Forecast Forecast
(9,801)
(7,781)
(7,827)
(7,328)
(705)
(141)
(846)

(782)
(156)
(938)

(850)
(170)
(1,020)

(942)
(188)
(1,130)

(500)
50,000
49,500
38,853

(500)
(500)
(9,219)

(8,847)

(8,457)

5,226
44,079

44,079
34,860

34,860
26,013

26,013
17,556

CQ + 1
CQ + 2
CQ + 3
CQ + 4
Forecast Forecast Forecast Forecast

100%

100%

100%

100%

32.5%

31.7%

30.4%

30.7%

67.5%

68.3%

69.6%

69.3%

0.0%
Err:511

Err:511

Err:511

Err:511

CQ + 1
CQ + 2
CQ + 3
CQ + 4
Forecast Forecast Forecast Forecast

69.9%

34.8%

34.9%

35.5%

48.1%

27.1%

17.6%

26.4%

83.0%

38.7%

44.2%

39.9%

150.0%

53.8%

12.5%

12.5%