Sample Video


This software industry course offers a careful balance of videos, discrete exercise/solutions that can be layered on top of existing accounting and financial modeling acumen. This module is designed to get you up to speed quickly and efficiently with a focus on unique aspects related to software analysis, which can be paired with broader, more generalized TTS courses including Applied Excel and 3-statement Financial Modeling.

1.5 hours of video content.
Estimated 7-8 hours to complete.


  • Information Technology is now one of the biggest sectors in the economy and software is the largest industry within this rapidly growing sector
  • Analyzing software companies allows us to look at companies selling products and services in new and innovative ways that will become increasingly important to many other “traditional” businesses
  • Software companies are unique in many ways and require a little extra attention, even if you are already familiar with foundational 3-statement modeling and valuation concepts


Complete topics step by step or jump to any of the below at any time.

  • Challenges of Analyzing Software Companies
  • Establishing Cohorts Using Pivot Tables
  • Building Gross and Net Retention Ratios
  • Calculating Software Bookings and Billings
  • Understanding Software Revenue Recognition
  • Analyzing Deferred Revenue for Software Companies
  • Calculating Billings Using Balance Sheet Data
  • Understanding Correlations in Excel
  • “WeSCo” (World’s Easiest Software Company) Revenue Model, Income Statement, Cash Flow Statement & Balance Sheet


This course is open to all. To maximize the benefit of this course we recommend an understanding of financial statements and Microsoft Excel.


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