Capacity Model.xlsx

	B	C	D	E	F	G
1
2	To Do's
3	To-Do	Section (shown with Black Tabs)	Tab	Range	Notes	Open item?
4	Add in the billings forecast into the model	Other Input Files --->	Other FY2021 Billings (last tab in model)	top of page	I need you to link in your full billings forcast to this input tab. And tell me how many months I should use for the cash forecast
5	Review the heat maps in the operating expense output	Model Outputs --->	Op Ex Summary and Op Ex Details	all	look at big swings in Op Ex and make sure you understand drivers / can answer Manoj's questions
6	Unrecoverable draw	Operating Model ->	Employee Build-Quota Carrying	row 1153	I believe you did some work to increase this / improve the forecast. Need to find that in a prior model or redo?
7	Need to review Cap Ex forecast	Other Input Files --->	Cap Ex Input	top of page	need to update the cap ex forecast
8	Add in Historical Cash flows?	Consolidators ->
9	add in historical P&L information to the I.S. Consolidator	Consolidators ->	Income Statement Consolidation	Rows 227 - 268	JT Taking
10	add in historical balance sheet info io the B.S. Consolidator	Consolidators ->	Balance Sheet Consolidation	rows 169-177	JT Taking
11	Incoroprate the sales team into the model from the HR census input	Model Assumptions->	Sales Team	I31 to M131	once we link to the base case, we can build other cases to the right based off of the base case	Done
12	Add in historical ARR information to the Consolidator	Consolidators ->	ARR & Customer Consolidation	Rows 69 to 191	this will help us show the ARR for the full fiscal year so we can see the trends	Done
13	Update the ARR roolforward
14
15
16	Issues
17	Pipeline data only is available for FY 2021. so if we want to forecast beyond that we'll need a new approach to ATR.
18	if we are going to do logo forecasting, need to fix logos on the ATR schedule
19	need billings for bookings made prior to FY 2021
20	monster booking forecasted for Feb 2021. need to get this.
21
22	Notes
23	This is a sales capacity / sales achievement model. Sales team ramp and productivity drive bookings. Expenses are consolidated from department budget templates.
24	Revenue is recognized ratably (ARR/12) via the ARR Rollforward - which is based on ACV bookings and reflects churn. The model is not using revenue waterfalls.
25	This is a billings model. Bookings ACV and term drive billings. Which impact AR, and then cash via collections. AR is a function of billings, not revenue.
26	Bookings are based on ACV of the contract. TCV equals term of contract times ACV (assumes discounting baked into ACV)
27	Self-Deployed Conversion to Cloud product is considered a new booking / and commissions are paid. This is a use of Sales Capacity.
28	TCV excludes services. Services do not flow through deferred revenue, unbilled revenue or revenue waterfalls.
29	Professional Services is calculated as 10% of ACV Product Bookings. PS does not flow through deferred revenue (recognized as delivered)
30	Commission payments are based on OTE and implied % of TCV bookings. This approach was taken given complexity of sales comp plans. Need to make sure Commissions are not double counted via templates.
31	Training is based on new logo's.
32	"Bookings by Team" tab is where the model mechanics balance the bookings split between the Cloud and Self-Deployed sale teams
33	COGS is a blend of template inputs (headcount expenses) and variable cloud costs associated with the Cloud hosting at AWS/other cloud providers
34	Operating expenses do not account for share based comp.
35
36
37	Risks
38	Q4 back end loaded.
39	Limited sales capacity in Q1
40	Sales team is still relatively small - individual hires can drive meaningful difference in bookings achievement.
41	Matching AWS capacity with Cloud demand. Risk to gross margin based on demand and product performance.
42	Assumes meaningful cash collections from booking 3 year Self-Deployed bookings, billed all up front (assuming extra $13M in collections from this)
43	Budgeted Revenue is being recognized ratably based on length of contract - not consistent with GAAP
44	Customer concentration - meaningful delay in AR collection by large customers can swing cash flow materially
45	Under-estimation of Cloud Hosting or support costs (favorable swing in trends assumed in COGS/Margin .vs recent history)
46
47
48	Hand Jams
49	shifted Cloud bookings in Q1 to last month (see ATR tab)
50	Self-Deployed Sales Team picks up any sales capacity needed to achieve the Cloud Sales targets. This mechanic happens on the "bookings by team" tab.
51	Monthly Average Cash to generate interest income (at the bottom of income statement consolidation tab) has a hard-coded estimate to avoid circularity
52	Q1 churn is hard coded. We pulled some churn out of Q2 to remain on the annual targets. This is on the ATR tab.
53	Non standard guranteed draw is added in the Guranteed draw build out. Reads from general assumptions tab
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100