Revenue Model

Build a driver-based model that translates clear business assumptions into decision-ready outputs. The emphasis is on model architecture (inputs calculations outputs), transparency of assumptions, and disciplined thinkingnot spreadsheet mechanics.

Tab 1: Assumptions

Create a dedicated assumptions sheet where all inputs are centralized and clearly labeled.

Requirements:

• All input cells clearly identified (e.g., green shading)
• Each assumption documented with a brief label (what it is and what it represents)
• Assumptions must be drivers, not output targets

Include assumptions for:

• Hardware: unit growth rates, ASP changes, discount rate assumptions, unit cost assumptions
• Software: subscription growth/starting base (as applicable), ARPS assumptions, churn rate assumptions
• Services: contract volume assumptions, ACV assumptions, renewal rate assumptions
• Any additional mix assumptions needed to drive segment or total mix shift

Note: Do not input margin targets. Gross margin should be an output that emerges from price/volume/mix and cost assumptions.

Tab 2: Revenue Model

Build the driver-based model by segment, with calculations flowing directly from the Tab 1 assumptions.

Requirements:

• Model all three NovaTech segments using segment-specific drivers:
• Hardware: units, ASP, discount %, unit cost (to compute revenue, COGS, and gross margin)
• Software: subscriptions, ARPS, churn rate (to compute revenue and churn impact)
• Services: contracts, ACV, renewal rate (to compute revenue and renewal dynamics)
• Time horizon must include:
• 20212024 historical
• 20252028 projected
• Separate inputs, calculations, and outputs clearly (structure matters)
• Calculations must be consistent across years (no hard-coded plug values in projection years)

Tab 3: Summary & Output Preview

Create a simple output summary that allows a reader to understand the model results quickly. This is an output preview to support Week 5 communicationpolish is not required yet.

Requirements:

• A summary table showing:
• Revenue by segment (Hardware/Software/Services)
• Total revenue
• Segment mix (%) and mix shift over time
• Gross margin (overall and/or by segment, as supported by your model)
• At least two charts, such as:
• Revenue by segment over time
• Revenue mix shift over time
• Gross margin trend over time
• A short narrative section with 35 insight bullets written as so-what observations (drivers + implication), not data recaps

Submission

Submit your Excel/Sheets file with all three tabs included and clearly named:

1. Assumptions
2. Revenue Model
3. Summary & Output Preview