SAAS Products

Security Alarm/Alert Services are actually one of the more hidden Software-as-a-Service (SaaS) types of recurring revenue services. This model dives into the specific nature of how to populate revenue/users/churn, pro-forma, and a DCF Analysis for such a business venture. Includes 5-year monthly and annual summary outputs.

There are two primary revenue streams of this business. The first is a situation where the Security Alarm company pays a 3rd party for continued monitoring services and then delivers those services to the installed equipment of customers (marking up the price the customer pays relative to what the company pays to the 3rd party). This is the recurring revenue part. The second revenue stream is markup on equipment and installation. In this sense, the company will buy security monitoring equipment from a supplier at some price and then sell it to the customer at a markup (accounting for the installation labor as well). The other ancillary income stream from this involves service calls where the company pays service technicians a rate and charges the customer some markup. There is margin in all of these types of revenue streams. Logic exists to account for those dynamics in this template. The user can adjust the following by year over 5 years: Start Month of Revenue, Locations Added per Month by Year, % of Locations With Monitoring Service - Low/Mid/High pricing tiers, Monthly Price of Standard Service/Location - Low/Mid/High, Monthly churn of each pricing tier, % of installations of each tier, Average cost of installation per tier, Margin earned per installation tier, Revenue for installations per tier, Service calls per year, Average service call count per location per year, Charge per service call, Average hours per service call. Configurations are also available to define upsells and downsells between each pricing tier over time and any resulting negative churn (or positive churn). Final financial results of the project are displayed in a monthly and annual detail pro-forma as well as an Executive Summary and cash contribution and distribution breakdown per year. Plenty of visuals were built in this financial model, including for key metrics like churn rate, MRR expansion, CAC, month to pay back CaC, LTV, and LTV to CaC ratio. Assumptions are laid out in an easy to understand structure for better usability.