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The SaaS Financial Model You’ll Actually Update (Updated 2019)

Baremetrics

This is where you’d benefit from bringing in someone from your leadership team to keep things up-to-date. . For more established companies, the standard and widely-understood method for forecasting cash from annual payments is to forecast Deferred Revenue. We already know what the revenue forecast is. New Customers.

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Balancing SaaS Growth and Profits to Maximize SaaS Company Valuation

OPEXEngine

For SaaS companies, the investment is not recouped until after years of initial SaaS revenues. Deferred Revenue = Deferred Profits. SaaS companies have similar up-front revenue acquisition expenses as product sale companies, but these up-front investments coupled with long-term returns delays the revenue and profits.