Timestamps:

  • Introduction 0:00-1:05

  • Example 1: Building a Custom Revenue Stream 1:06-12:06

  • Example 2: Finding Unit Economics Formulas and Building Them 12:07-15:28

  • Formula Building Pro Tips / Best Practices: 15:29-17:01

  • Example 3: Linking Data in the Model (Per Unit Expense) 17:02-19:44

Key Takeaways from the Video:

  • Example 1: Building a Formula using a Custom Revenue Stream

    • There are really 4 steps to take whenever you build any formula:

      • 1) Be sure the metric type is set to "Calculation"

      • 2) Tell the model what this part of the formula (metric) should do (add, subtract, divide, multiply)

      • 3) Tell the model what "type" of number this should be (whole number / integer, percentage, decimal, or currency)

      • 4) Locate and add each metric to the current list that need to be multiplied, divided, added, or subtracted by clicking the dropdown located to the right of "Metrics Used".

    • When you make a custom revenue stream, revenue by default is an input so you'll need to make sure you change revenue to a calculation and set it up properly to see it scale.

  • Example 2: Finding Unit Economics Formulas and Building Them

    • If you're not sure how a formula should work for a certain calculation, feel confident making a quick search of it and using that as your guide for inputting it into the platform.

    • Of course, reach out to one of our analysts through intercom if you are having trouble finding out how to set up a metric you're looking to get more visibility on.

  • Formula Building Pro Tips:

    • In our platform, at the moment, each metric is meant to handle one order of operations. That means if tell that metric to "Add", it will only handle "addition" in that formula. This means that you can easily understand how each step of your formulaic process is working and don't have to worry about parenthesis placements like you would in google sheets / excel. It also means that for each part of a formula you'll need to dedicate a metric to one part of the step.

      • Example, a calculation like LTV (Lifetime Value) which = ARPU X Customer Lifespan needs both ARPU (Average Revenue Per User) and Customer Lifespan to be set up before LTV can be found.

        • Metric 1) ARPU = 1 Metric dedicated to Total Revenue / Active Users

        • Metric 2) Customer Lifespan = 1 (which would need to be an input metric added with a value of "1") divided by churn rate.

        • Metric 3) LTV = ARPU X Customer Lifespan

  • Example 3: Linking Data in the Model (Per Unit Expense)

    • When you need to "link" data in one metric to another metric all you'll need to do is the following:

      • 1) Change the metric that needs to receive the data to a "calculation" metric type.

      • 2) Set your Operation to "Add"

      • 3) Determine what the number "type" is that you're needing to link by choosing from currency, integer, decimal, or percentage.

      • 4) Lastly, find the metrics that contain the data you need to link and add them to the list of metrics going into the calculation by using the decision tree dropdown. You'll start from the highest view of sections within the model and then you'll need to "zoom in" on the metric(s) you need by following the branches that open up to the right as you hover over each item. And if you only need to add one metric to the list that's perfectly fine. Any number + nothing is just itself.

      • 5) Hit Save.

Did this answer your question?