Time, Inc. Case Study
1. Revenue model: create a 3-year monthly revenue forecast using the initial assumptions below. If you want to change any of the initial assumptions below, please explain why. Make any other assumptions you need and explain why.
• 10,000 active customers as 12/31/2014
• 20% MoM customer growth rate
• 1.0% monthly customer churn
• $29 base fee + $6 per employee pricing model
• 10 person average company size
2. Cash model: create a 3-year monthly income statement and cash flow forecast based on your revenue forecast and the initial assumptions below. Change and/or make any other assumptions you need to and explain why.
• $60M starting cash balance
• -250% operating margins
• 12 month cost of acquisition
3. Metrics: what is the right set of metrics to track in this business? Please output from the model and discuss qualitatively what they indicate.
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