Course Challenge

99 Agency --->
Annual Report--->
Income Statement

$ in 000s Q1 Q2 Q3 Q4 FY 2020
Revenue Ad Campaigns 13,794 16,528 13,674 19,418 63,414
Revenue SEO Campaigns 6,682 8,140 5,231 8,091 28,144
Total Revenue 20,476 24,668 18,905 27,509 91,558
Cost of Ads (7,306) (8,278) (7,199) (10,851) (33,634)
Cost of SEO Campaigns (4,545) (5,507) (3,819) (4,934) (18,805)
Gross Profit 8,625 10,883 7,887 11,724 39,119
SG&A (5,171) (5,507) (5,390) (6,579) (22,647)
EBITDA 3,454 5,376 2,497 5,145 16,472
D&A (82) (81) (83) (89) (335)
EBIT 3,372 5,295 2,414 5,056 16,137
Interest Expense (120) (120) (120) (120) (480)
EBT 3,252 5,175 2,294 4,936 15,657
Taxes (325) (518) (229) (494) (1,566)
Net Income 2,927 4,658 2,065 4,442 14,091
 Q1 Q2 Q3 Q4 FY 2021
16413 18,926 16,498 21,432 73,269
6,177 7,460 5,803 9,023 28,463
22,590 26,386 22,301 30,455 101,732
(8,816) (10,273) (9,390) (12,034) (40,513)
(3,777) (4,544) (4,263) (6,034) (18,618)
9,997 11,569 8,648 12,387 42,601
(5,696) (5,498) (5,640) (6,231) (23,065)
4,301 6,071 3,008 6,156 19,536
(85) (85) (85) (85) (340)
4,216 5,986 2,923 6,071 19,196
(234) (234) (234) (234) (936)
3,982 5,752 2,689 5,837 18,260
(398) (575) (269) (584) (1,826)
3,584 5,177 2,420 5,253 16,434
Balance Sheet

31Mar 30Jun 30Sep 31Dec 31Mar 30Jun 30Sep

$ in 000s 2020 2020 2020 2020 2021 2021 2021
Cash 414 496 410 583 492 568 495
Trade Receivables 18,044 18,070 17,834 23,838 25,144 25,014 22,868
Inventory - - - - 0 0 0
Fixed Assets 1,286 1,329 1,386 1,381 1,339 1,283 1,288
Other assets 6,684 8,542 11,559 8,159 8,445 11,170 14,713
Total Assets 26,428 28,436 31,189 33,960 35,421 38,035 39,364

Trade Payables 15,125 14,949 15,021 20,478 14,938 11,806 14,195

Other Liabilities 6,056 8,304 9,737 6,896 10,048 14,150 16,066
Financial Liabilities 3,000 3,000 3,000 3,000 4,680 4,680 4,680
Equity 2,247 2,183 3,431 3,586 5,755 7,399 4,423
Total Liabilities & Equity 26,428 28,436 31,189 33,960 35,421 38,035 39,364

DSO 79 66 85 78 100 85 92
DPO 115 98 123 117 107 72 94
31Dec
2021
643
24,231
0
1,313
12,545
38,732

11,002
15,110
4,680
7,940
38,732

72
55
Cash Flow Statement

$ in 000s Q1 Q2 Q3 Q4 FY 2021
EBITDA 4,301 6,071 3,008 6,156 19,536
Interest Paid (234) (234) (234) (234) (936)
Taxes Paid (398) (575) (269) (584) (1,826)
Change in Accounts Receivable (1,306) 130 2,146 (1,363) (393)
Change in Other Assets (287) (2,724) (3,543) 2,168 (4,386)
CAPEX (43) (29) (90) (110) (272)
Change in Trade Payables (5,540) (3,132) 2,389 (3,193) (9,476)
Change in Other Liabilities 3,152 4,102 1,916 (956) 8,214
Change in Financial Liabilities 1,680 - - - 1,680
Changes in Equity (1,415) (3,533) (5,396) (1,736) (12,080)
Net Cash Flow (90) 75 (73) 148 60
Budget Templates --->
Revenue: Bottom - Up

Bottom-up Approach

Number of Ad campaigns Q1 Q2 Q3 Q4 FY 2020

Client A 486 513 408 307 1,714
Client B 185 236 205 343 969
Client C 49 57 37 114 258
Other 245 331 273 353 1,202
Total number of Ad campaigns 965 1,137 923 1,118 4,144

Number of SEO campaigns Q1 Q2 Q3 Q4 FY 2020

Client A 384 463 266 368 1,481
Client B 327 347 229 318 1,221
Client C 280 280 262 419 1,240
Other 372 471 274 502 1,619
Total number of SEO campaigns 1,363 1,560 1,031 1,607 5,561

Average revenue per Ad campaign Q1 Q2 Q3 Q4 FY 2020

Client A 12.5 13.2 13.4 15.8 13.5
Client B 16.4 16.1 16.7 19.8 17.6
Client C 28.1 25.9 22.1 13.6 20.3
Other 13.5 13.5 14.5 17.6 14.9
Average revenue Ad campaigns 14.3 14.5 14.8 17.4 15.3

Average revenue per SEO campaign Q1 Q2 Q3 Q4 FY 2020

Client A 5.4 5.1 5.3 5.5 5.3
Client B 4.5 5.4 5.7 6.1 5.4
Client C 3.1 3.2 2.8 2.9 3.0
Other 6.1 6.4 6.5 5.8 6.2
Average revenue SEO campaigns 4.9 5.2 5.1 5.0 5.1

Revenue in 000s Q1 Q2 Q3 Q4 FY 2020

Client A 6,069 6,776 5,470 4,855 23,170
Client B 3,035 3,801 3,419 6,796 17,051
Client C 1,379 1,488 820 1,553 5,241
Other 3,311 4,463 3,965 6,214 17,952
Total revenue Ad campaigns 13,794 16,528 13,674 19,418 63,414

Revenue in 000s Q1 Q2 Q3 Q4 FY 2020

Client A 2,071 2,361 1,412 2,023 7,867
Client B 1,470 1,872 1,308 1,942 6,592
Client C 869 895 732 1,214 3,710
Other 2,272 3,012 1,779 2,913 9,975
Total revenue SEO campaigns 6,682 8,140 5,231 8,091 28,144
 Q1 Q2 Q3 Q4 FY 2021 Var% Y-o-Y Feedback Q1
374 462 418 402 1,657 -3.4% 0.0%
223 206 215 363 1,006 3.8% 4.0%
99 186 226 516 1,027 298.2% 30.0%
413 415 309 71 1,208 0.5% 1.0%
1,109 1,268 1,168 1,352 4,898 18.2%

Q1 Q2 Q3 Q4 FY 2021 Var% Y-o-Y Feedback Q1

353 451 350 541 1,695 14.5% 20.0%
343 341 285 367 1,336 9.4% 10.0%
412 597 555 1,074 2,638 112.7% 30.0%
252 249 157 201 858 -47.0% -30.0%
1,360 1,638 1,347 2,183 6,528 17.4%

Q1 Q2 Q3 Q4 FY 2021 Var% Y-o-Y Feedback Q1

11.4 12.3 13.8 21.3 14.7 8.5% 10.0%
18.4 19.3 16.9 20.1 18.9 7.3% 6.0%
18.3 15.3 12.4 8.3 11.4 -43.8% -30.0%
15.1 15.5 13.9 18.1 15.1 1.2% 2.0%
14.8 14.9 14.1 15.8 15.0 -2.2%

Q1 Q2 Q3 Q4 FY 2021 Var% Y-o-Y Feedback Q1

4.9 4.8 5.3 5.5 5.1 -3.1% -2.0%
4.5 5.9 5.3 5.9 5.4 0.3% 0.0%
2.7 2.5 2.3 2.1 2.3 -22.2% -15.0%
7.1 7.2 7.4 8.1 7.4 20.4% 25.0%
4.5 4.6 4.3 4.1 4.4 -13.8%

Q1 Q2 Q3 Q4 FY 2021 Var% Y-o-Y Q1

4,267 5,678 5,774 8,573 24,292 4.8%
4,103 3,974 3,630 7,287 18,994 11.4%
1,805 2,839 2,805 4,286 11,735 123.9%
6,237 6,435 4,289 1,286 18,247 1.6%
16,413 18,926 16,498 21,432 73,269 15.5%

Q1 Q2 Q3 Q4 FY 2021 Var% Y-o-Y Q1

1,730 2,163 1,857 2,978 8,728 10.9%
1,544 2,014 1,509 2,166 7,233 9.7%
1,112 1,492 1,277 2,256 6,136 65.4%
1,791 1,790 1,161 1,624 6,366 -36.2%
6,177 7,460 5,803 9,023 28,463 1.1%
 Budget
Q2 Q3 Q4 FY 2022

Budget
Q2 Q3 Q4 FY 2022

Budget
Q2 Q3 Q4 FY 2022

Budget
Q2 Q3 Q4 FY 2022

Budget
Q2 Q3 Q4 FY 2022

Budget
Q2 Q3 Q4 FY 2022
Revenue: Top - Down
Top-down Approach
FY 2022
Country ABC population (million people)
Percentage of people using Internet
Number of Internet Users (million people)
Average revenue per internet user (in $)
Total Revenue Internet Industry (in million $)
% spent on Agency fees
Agency Revenue
99 Agency Market Share
99 Agency Revenue (in million $)
Revenue Budget

Bottom-Up Approach
Top-Down Approach
Average Revenue Projection

Previous Year 101,732

Y-o-Y Growth %

Last Year
Q1 Q2 Q3 Q4 FY 2021
Revenue Ad campaigns 16,413 18,926 16,498 21,432 73,269
Revenue SEO campaigns 6,177 7,460 5,803 9,023 28,463
Total Revenue 22,590 26,386 22,301 30,455 101,732

Budget
Q1 Q2 Q3 Q4 FY 2022
Revenue Ad campaigns
Revenue SEO campaigns
Total Revenue
Var% Y-o-Y
Cost of Sales - Ad Campaigns
Last Year Actuals
in '000 Q1 Q2 Q3 Q4 FY21 Q1
Number of Ad Personnel 14 14 15 15
Average salary ($ in 000s) (41.2) (43.2) (44.5) (42.4)
Cost of Ad Personnel (577) (605) (668) (636) (2,485)

Number of Ad Campaigns 1,109 1,268 1,168 1,352 4,898

Average Cost per ad campaign (7.4) (7.6) (7.5) (8.4) (7.8)
Cost of Ad Campaigns (8,239) (9,668) (8,723) (11,398) (38,028)

Cost of Sales - Ad Campaigns (8,816) (10,273) (9,390) (12,034) (40,513)

 Budget
Q2 Q3 Q4 FY22
Cost of Sales - SEO Campaigns
Last Year Actuals Budge
in '000 Q1 Q2 Q3 Q4 FY21 Q1
Number of SEO Personnel 19 19 20 21
Average salary ($ in 000s) (61.2) (64.5) (68.3) (61.9)
Cost of SEO Personnel (1,163) (1,226) (1,366) (1,300) (5,054)

Number of SEO Campaigns 1,360 1,638 1,347 2,183 6,528

Average Cost per SEO campaign (1.9) (2.0) (2.2) (2.2) (2.1)
Cost of SEO Campaigns (2,614) (3,319) (2,897) (4,734) (13,564)

Cost of Sales - SEO Campaigns (3,777) (4,544) (4,263) (6,034) (18,618)

 Budget
Q2 Q3 Q4 FY22
SG&A
Last Year Actuals Budget
in '000 Q1 Q2 Q3 Q4 FY 21 Q1 Q2
Office Rent (300) (300) (300) (300) (1,200)
fixed fee

Accounting Services (20) (20) (20) (24) (84)

fixed fee

Legal Fees (53) (52) (52) (54) (211)

fixed fee

Staff Training (50) (50) (50) (50) (200)

fixed fee

Management Salaries (2,000) (2,000) (2,000) (2,000) (8,000)

fixed fee

Administration (788) (174) (765) (453) (2,179)

fixed fee

External Services (226) (264) (223) (305) (1,017)

as a % of Revenue 1% 1% 1% 1% 1%

Selling Commissions (2,259) (2,639) (2,230) (3,046) (10,173)

as a % of Revenue 10% 10% 10% 10% 10%

SG&A (5,696) (5,498) (5,640) (6,231) (23,065)

Budget
Q3 Q4 FY 22
Fixed Assets
Last Year Actuals Budget
31Mar 30Jun 30Sep 31Dec 31Mar
$ in 000s 2021 2021 2021 2021 2022
Beginning value of Fixed Assets 1,381 1,339 1,283 1,288
D&A (85) (85) (85) (85)
D&A as a % of Beginning value of Fixed Assets -6.2% -6.2% -6.2% -6.2%
CAPEX 43 29 90 110
Ending Value of Fixed Assets 1,339 1,283 1,288 1,313 -

Total Revenue 22,590 26,386 22,301 30,455

CAPEX as a % of Revenue 0.2% 0.1% 0.4% 0.4%
 Budget
30Jun 30Sep 31Dec
2022 2022 2022

- - -
Working Capital
Last Year Actuals Budget
31Mar 30Jun 30Sep 31Dec 31Mar
$ in 000s 2021 2021 2021 2021 2022
Total Revenues 22,590 26,386 22,301 30,455
Cost of Sales (12,593) (14,817) (13,653) (18,068)

Trade Receivables 25,144 25,014 22,868 24,231

DSO 100.2 85.3 92.3 71.6

Trade Payables 14,938 11,806 14,195 11,002

DPO 106.8 71.7 93.6 54.8

Inventory 0 0 0 0
DIO 0 0 0 0
 Budget
30Jun 30Sep 31Dec
2022 2022 2022
Financial Liabilities

Last Year Actuals Budget

31Mar 30Jun 30Sep 31Dec 31Mar 30Jun 30Sep
$ in 000s 2021 2021 2021 2021 2022 2022 2022
Financial Liabilities 4,680 4,680 4,680 4,680
Interest expense -120 -120 -120 -120
Interest rate % -2.6% -2.6% -2.6% -2.6%
dget
31Dec
2022
Master Budget --->
Income Statement

Last Year Actuals Budget

in '000 Q1 Q2 Q3 Q4 FY 21 Q1 Q2
Revenue Ad Campaigns 16,413 18,926 16,498 21,432 73,269
Revenue SEO Campaigns 6,177 7,460 5,803 9,023 28,463
Total Revenue 22,590 26,386 22,301 30,455 101,732
Cost of Ads (8,816) (10,273) (9,390) (12,034) (40,513)
Cost of SEO Campaigns (3,777) (4,544) (4,263) (6,034) (18,618)
Gross Profit 9,997 11,569 8,648 12,387 42,601
SG&A (5,696) (5,498) (5,640) (6,231) (23,065)
EBITDA 4,301 6,071 3,008 6,156 19,536
D&A (85) (85) (85) (85) (340)
EBIT 4,216 5,986 2,923 6,071 19,196
Interest Expense (234) (234) (234) (234) (936)
EBT 3,982 5,752 2,689 5,837 18,260
Taxes (398) (575) (269) (584) (1,826)
Net Income 3,584 5,177 2,420 5,253 16,434
Budget
Q3 Q4 FY 22
Balance Sheet

Last Year Actuals Budget

31Mar 30Jun 30Sep 31Dec 31Mar 30Jun
$ in 000s 2021 2021 2021 2021 2022 2022
Cash 492 568 495 643
Trade Receivables 25,144 25,014 22,868 24,231
Inventory 0 0 0 0

Fixed Assets 1,339 1,283 1,288 1,313

Other assets 8,445 11,170 14,713 12,545

Total Assets 35,421 38,035 39,364 38,732

Trade Payables 14,938 11,806 14,195 11,002

Other Liabilities 10,048 14,150 16,066 15,110

Financial Liabilities 4,680 4,680 4,680 4,680

Equity 5,755 7,399 4,423 7,940

Total Liabilities & Equity 35,421 38,035 39,364 38,732

Check - - - -
Budget hh
30Sep 31Dec
2022 2022
Cash Flow Statement

Last Year Actuals

31Mar 30Jun 30Sep 31Dec
$ in 000s 2021 2021 2021 2021
EBITDA 4,301 6,071 3,008 6,156
Interest Expenses (234) (234) (234) (234)
Taxes (398) (575) (269) (584)

Change in Accounts Receivable (1,306) 130 2,146 (1,363)

Change in Other Assets (287) (2,724) (3,543) 2,168
CAPEX (43) (29) (90) (110)

Change in Trade Payables (5,540) (3,132) 2,389 (3,193)

Change in Other Liabilities 3,152 4,102 1,916 (956)
Change in Financial Liabilities 1,680 - - -

Changes in Equity (Dividend Payments, Increase in Equity) (1,415) (3,533) (5,396) (1,736)

Net Cash Flow (90) 75 (73) 148

als Budget
31Mar 30Jun 30Sep 31Dec
FY 21 2022 2022 2022 2022 FY 22
19,536
(936)
(1,826)

(393)
(4,386)
(272)

(9,476)
8,214
1,680

(12,080)

60