What is a Subscription Revenue Forecast Template?

Subscription Revenue Forecasts are considered one of the most important planning tools for any business with significant subscription revenue. They are used by executives and managers to estimate recurring revenue in future months and years. Key functionality in this type of forecast form uses drivers like New Deals, Deal Size and Churn to automatically calculate the forecast. The provided example has expandable columns for monthly detail and it goes 10 years into the future. You will find an example of this type of forecast form below.

Purpose of Subscription Revenue Forecast Models

Companies and organizations use Subscription Revenue Forecast Models to predict revenue streams, as accurately as possible, in coming months and years. When used as part of good business practices in a Financial Planning & Analysis (FP&A) Department, a company can improve its planning for everything related to their annual recurring revenue (ARR) streams and customer retention, as well as, reduce the risk that customer-centric tactics lack management focus.

Subscription Revenue Forecast Model Example

Here is an example of a driver-based Subscription Revenue forecast template that calculates 10 years of future revenue streams.

Subscription Revenue Forecast Template Example

Subscription Revenue Forecast Template Example

You can find hundreds of additional examples here.

Who Uses This Type of Forecast Form?

The typical users of this type of forecast form are: The Board of Directors, Executives and Sales Managers.

Other Forecast Forms Often Used in Conjunction with Subscription Revenue Forecast Models

Progressive Financial Planning & Analysis (FP&A) Departments sometimes use several different Subscription Revenue Forecast Models, along with annual budgets and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.

In analyses where budgets or forecasts are used, the data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Technology Solutions and More Examples