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Customer Lifetime Value Income Statement
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Inputs:
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ARPU$417
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Customer Lifetime Months20 months
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Gross Margin80.0%
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Customer Count - Current500
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Customer Count - in 3 Years2,000
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Customer Acquisition Cost$2,083
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Cost of Capital30.0%
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G&A as % of LTV Revenue16.5%
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Target EBITDA Margin25.0%
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CLTV Income Statement:LTV% of Revenue
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CLTV Revenue$8,333 100.0%
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Cost of Goods Sold1,667 20.0%
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Gross Profit$6,667 80.0%
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Sales & Marketing Expenses$2,083 25.0%
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General & Administrative Expenses1,375 16.5%
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Research & Development Expenses1,125 13.5%
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Total Operating Expenses$4,583 75.0%
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CLTV EBITDA$2,083 25.0%
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Conversion to Total R&D Spend:
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R&D Allocated per Customer Lifetime$1,125
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Customer Lifetime Months20 months
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Annual R&D per Customer $675
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Customer Count - in 3 Years2,000
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Present Value Factor at Cost of Capital0.46x
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Present Value Factor of Future Customers$910
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Annual R&D Expense Target - This Year$614,474
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Annual R&D Expense Target - as % of ARR24.6%
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