AVL client’s investors believed the story but didn’t understand the financial model.
Client: Enterprise Application Platform
Issues:
- Investors believed the story but didn’t understand the complex, 17-page financial model
- The company assumed all bookings would turn into revenue
- Assumptive sales pipeline
- Pricing didn’t make sense based on how revenue was being booked
What we did:
- Rebuilt and simplified the financial model
- Added levers (MRR, CAC, etc.) to articulate actual and forecasted performance
- Built a revenue schedule to show where sales were coming from
- Updated market research to better define the pricing strategy
Results:
- Investors understood the story
- Company is achieving forecasted revenue, and it was clear to all stakeholders how they will meet financial goals.
