Audoo Financial Model

Three-layer product stack:

1. Audio Meter - low-cost plug-in hardware device installed at licensed premises (cafes, gyms, retail, etc.); captures, analyses, and transmits compressed audio fingerprints.
2. Platform - cloud platform reconciling tens of millions of songs; tags, sorts, and reports music playback to PROs in real time.
3. Analytics Dashboard - data and insights layer sold as upsell to record labels, publishers, and talent agencies.

Value proposition: replaces the current statistical/sampling-based royalty attribution system (paper set-lists, Excel broadcast logs) with verified, real-world play data - enabling accurate, auditable royalty payments to artists and composers.

• Global TAM: 400+ performing right and collection societies distributing over $55bn annually.
• Initial target markets:
• UK: 400,000+ licensed premises; PROs (PRS + PPL) distribute £823m/yr (PRS £746m 2017, PPL £77m 2018)
• Australia: 120,000+ licensed premises; APRA AMCOS + PPCA distribute $528m/yr (APRA $478m 2018, PPCA $50m 2018)
• Ireland: 25,000+ licensed premises; IMRO distributes €33m/yr (2018)
• USA: 3,500,000+ licensed premises; ASCAP + BMI + SESAC + Global Music Rights distribute $2.7b/yr (ASCAP $1.2b, BMI $1.1b, SESAC $274m, GMR $130m - all 2018)
• Problem quantification: over $2.7bn lost globally by artists annually due to statistical attribution process.

Three revenue streams identified from product architecture:

1. Audio Meter (hardware) - device sold or leased to licensed premises. Pricing not in deck.
2. Platform licensing - PROs pay for access to Audoo's real-time reporting data feed. Pricing / contract structure not in deck.
3. Analytics Dashboard (SaaS upsell) - subscription or data-access fee for record labels, publishers, and talent agencies. Pricing not in deck.

Primary paying customers appear to be PROs (B2B), with licensed premises as the deployment channel and music rights-holders as ultimate beneficiaries.

Awards / credibility signals:

• Winner, Cannes 2020
• Winner, Sydney 2019
• Alumni of (unnamed accelerator/program)
• Supported by UK Department for International Trade and Mayor of London

Not explicitly addressed in deck. Implied moat:

• Proprietary audio fingerprinting + real-time reconciliation against tens of millions of songs.
• First-mover framing ("The Royalty Revolution is Coming…") and PRO relationships implied by workflow diagram.
• Network effect: more Audio Meters deployed → richer data → more accurate PRO reporting → stronger PRO contracts.
• Switching cost for PROs once data feed is embedded in payment workflow.

Direct competitors not named in deck.

• Archetype + why: Hardware + SaaS (device-led growth with recurring platform revenue). Three revenue streams need separate treatment: (1) Audio Meter unit economics (COGS, deployment ramp), (2) PRO platform contract ARR, (3) analytics dashboard SaaS ARR. Closest archetype is IoT/device + SaaS 3-statement model - similar to a connected-device company where hardware enables recurring software revenue.

• Forecast horizon & granularity: 5 years; monthly for Years 1–2 (device deployment ramp is lumpy), annual for Years 3–5.

• Key drivers & assumptions:

*Device deployment*

• UK licensed premises addressable: 400,000; initial penetration rate 1% Y1 → 5% Y5 (early-stage B2B hardware rollout)
• Audio Meter ASP / monthly rental fee: £10–£20/month per device (plug-in IoT devices in comparable markets; no deck data)
• Hardware COGS per unit: 40–50% of device revenue (typical for IoT hardware at low volumes)
• Deployment pace: driven by PRO partnership contracts; PRO signs → batch rollout to their licensed premises network

*Platform (PRO licensing)*

• Number of PRO contracts: 1–2 in Year 1 (UK + 1 other initial market), scaling to 6–8 by Year 5 across 4 initial geographies
• Annual platform fee per PRO: £500k–£2m/yr per PRO (data feed displacing statistical sampling; value-based pricing against royalty pools of £33m–$2.7b)
• Contract length: 3-year minimum (infrastructure contracts)

*Analytics Dashboard (SaaS upsell)*

• Addressable buyers: record labels, publishers, talent agencies; demand proportional to device footprint
• Annual subscription per customer: £20k–£100k depending on tier
• Attach rate to PRO network: 5–15% of labels/publishers in PRO's membership

*Cost structure*

• R&D / platform engineering: largest opex line for early stage; ~40% of opex
• Sales & BD: ~30% of opex (enterprise PRO sales is long-cycle)
• G&A: ~20% of opex
• Hardware logistics / support: ~10% of opex

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: PRO adoption slow (1 PRO live by Y3); device penetration <1%; dashboard upsell minimal. Revenue driven by single UK market.
• Base: 2 PROs signed by Y2 (UK + Australia); UK penetration 2–3% by Y5; analytics dashboard 10–15 customers by Y5.
• Bull: US PRO partnership signed by Y3 (massive premise count: 3.5m+); PRO data-fee pricing at high end; analytics dashboard scales as primary revenue driver.

• Required sheets / outputs:

1. Assumptions dashboard (all drivers in one place)
2. Device deployment model (units deployed by geography, monthly)
3. Revenue build: Device rental | PRO platform fees | Analytics Dashboard SaaS
4. P&L (Income Statement): Revenue → Gross Profit (hardware vs. software blended) → EBITDA
5. Headcount & opex schedule
6. Balance Sheet (hardware inventory, deferred revenue on multi-year PRO contracts)
7. Cash Flow Statement (capex for hardware inventory is key)
8. Scenario toggle (Bear / Base / Bull)
9. Valuation bridge (ARR multiple on software revenue + hardware asset value)