# Raydiant Financial Model

B2B SaaS platform ("OS for real-world experiences") that delivers digital signage, touch kiosks, virtual agent software, music, and content management via a proprietary hardware + cloud subscription bundle.

- Canonical: https://finamodel.com/startups/raydiant
- Excel download: https://finamodel.com/startup-models/raydiant.xlsx
- Category: Marketplace
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $13M
- Founded: 2021
- Geography: US-primary (customer logos suggest national; chain-focused).
- Customer: B2B

## About the company

Raydiant is a B2B platform for real-world customer experiences, combining digital-signage hardware with cloud subscriptions for screens, kiosks, content, music, and virtual-agent applications. Its operating system and app marketplace let locations manage visual experiences from one platform.

Revenue combines one-time hardware sales with recurring per-screen or per-location software fees, with marketplace and music services as additional layers. The deck showed 91% net dollar retention overall and 107% for customers with three or more screens, highlighting expansion within multi-location accounts.

The model uses customer cohorts, screens per customer, subscription price, expansion, and churn to build ARR, with hardware units modeled separately for revenue and COGS. Installation, support, app-marketplace attachment, and device margin sit beneath the recurring business. Multi-screen adoption and retention are the key operating levers.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Proprietary hardware device ("Raydiant Link" - Intel compute stick running RaydiantOS, an embedded Linux-based OS) combined with a cloud platform.
- Core modules: Modern Digital Signage, Touch Kiosk Solution, Virtual Agent Software, Infotainment, Interactive Content, B2B Music, App Marketplace, Automated Content (e.g. automated digital menu updates).
- Two sub-products visible: Raydiant Experience Platform (customer-facing) and SecondScreen by Raydiant (workplace/internal).
- Key differentiator vs. legacy (BrightSign, Four Winds, Scala): fully integrated OS+hardware, 5-min onboarding vs. months for incumbents, IoT-optimized, fleet management at scale, kiosk + virtual agent features competitors lack.
- Positioning: "What Meraki did for WiFi / Samsara for trucks / Square for POS / Roku for streaming - Raydiant does for real-world experiences."

## Market

- >250M screens sold per year globally
- >50% of those screens sold to businesses
- $1.2T total opportunity (own the chain - software + services across entire business chains)
- Stage 1 "Own the Screen" (digital signage software): $32B opportunity
- Stage 2 "Own the Store" (full in-location experience platform): $410B opportunity
- Stage 3 "Own the Chain" (enterprise fleet + data play): $1.2T opportunity
- Source cited: 2018 Living Room Set Top Box Data from eMarketer (for B2C comparables)
- No CAGR or market growth rate provided.
- SAM/SOM not explicitly broken out.

## Revenue model

- Hardware sale: Raydiant Link device (x86 compute stick).
- Software subscription: per-screen/per-location SaaS recurring fee. Subscription tiers implied by pricing column in competition table (Raydiant = "$$", cheaper than legacy "$$$$$/$$$$$$" and more expensive than nothing).
- App marketplace: revenue share from third-party apps (implied by "Robust App Marketplace" feature).
- B2B Music & Music Videos Service: separate service add-on.
- Channel: direct sales (VP Sales role named) + presumably self-serve for SMB.
- Pricing: Not quantified in deck (no ASP, no ACV, no per-screen monthly fee stated).

## Traction & metrics

- Overall NDR (all customers): 91%
- NDR for customers with 3+ screens: 107%
- % of new subscriptions with 3+ screens: 37% (2018) → 40% (2019) → 56% (2020 YTD)
- Data window: February 2018 – August 2020
- NDR benchmarks shown for context: SurveyMonkey 80%, Xero 87%, HubSpot @ IPO 93%, SurveyMonkey "organizational" 95%, Shopify @ IPO 101%, Square @ IPO 110%
- No revenue figures (ARR, MRR), customer count, or growth rate stated in deck.
- Customer logos across Retail/QSR, Banking, Health & Wellness, Hospitality, DOOH, Education segments: Wahlburgers, Pizza Ranch, Bank of America, Red Bull, Planet Fitness, Treasure Island Las Vegas, Harvard, Princeton, Dover Downs Casino, Farm Stores, First Bank, Liberty Bank.

## Unit economics

- No CAC, LTV, gross margin, or payback period stated in deck.
- Qualitative: 3+ screen customers show net dollar expansion (107% NDR implies negative churn in that cohort).
- No ARPU or per-screen economics disclosed.

## Competition / moat

- Direct competitors named: Enplug, ScreenCloud (cloud-first); BrightSign, Four Winds Interactive, Scala (legacy).
- Raydiant advantages claimed:
  - Only competitor with Kiosk Designer, Virtual Agent Platform, B2B Music, Automated Content, POS Integration, LTE Support, Automated Content Services.
  - Embedded OS (RaydiantOS) vs. app on Windows/Android for all others.
  - 5-min onboarding vs. 30–45 min (ScreenCloud) to months (legacy).
  - IoT-optimized OS flag: unique to Raydiant among listed competitors.
- Moat: proprietary hardware+OS stack, app marketplace lock-in, fleet management for enterprise chains, D2D (device-to-device) control channels for coordinated multi-screen experiences.

## Team & funding ask / use of funds

- Bobby Marhamat - CEO; prior COO at Revel, CRO at Highfive, SVP at Verizon/Revel
- Tuan Ho - CPO; Co-Founder/CEO at Philo, Harvard '09
- Cameron Essalat - VP Sales; prior VP Sales at MindTickle, VP Sales at Catchpoint Systems
- Mak Tadavani - VP Operations; prior VP Global Operations at Revel, Head of Operations at Target
- David Phipps - VP Engineering; prior Symantec, VP Cloud Engineering at Oracle, Sr. Dir. Eng. at Amazon
- Jack Abraham - Founder; Atomic (lead investor implied); Co-Founder TalkIQ/VoiceAI (acq. Dialpad $50M), Founder/CEO Milo (acq. eBay $75M)
- Mark Wahlberg - Advisor; co-owner of Wahlburgers (also a customer)

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## Recommended financial model

- **Archetype + why:** B2B SaaS with hardware attachment - subscription ARR model with one-time hardware revenue layer. The business is screen-subscription driven (per-screen/per-location MRR), making a SaaS ARR cohort model the right core, with a separate hardware unit-economics module. The app marketplace and B2B music are secondary revenue lines.

- **Forecast horizon & granularity:** 5-year annual (FY2021–FY2025), with monthly detail for Year 1–2 to capture cohort retention curves. Data available back to Feb 2018; model should anchor to Aug 2020 actuals.

- **Key drivers & assumptions:**
  - Screen/subscription count (new adds per period)
  - ARPU per screen per month
  - NDR - all customers: 91%
  - NDR - 3+ screen customers: 107%
  - Mix shift: 3+ screen % of new subscriptions: 56% as of 2020 YTD,
  - Hardware ASP
  - Hardware attach rate: 1 device per screen subscription
  - Hardware gross margin
  - Software gross margin
  - CAC
  - Payback period
  - Headcount-driven OpEx (sales, engineering, ops)

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - Bear: NDR stays at 91% (all-customer level); mix shift to 3+ screens stalls; hardware margin compression.
  - Base: NDR improves to ~95% as 3+ screen mix reaches 65%+; software margin expands.
  - Bull: NDR reaches 107%+ (3+ screen cohort dominates); marketplace revenue accelerates; chain-level enterprise deals close at higher ACV.
  - Flex variables: NDR, 3+ screen mix %, new logo adds/month, ARPU per screen, hardware ASP.

- **Required sheets / outputs:**
  1. Assumptions dashboard (all drivers in one place)
  2. Subscription cohort model (monthly intake × NDR curve, split all-customer vs. 3+ screen)
  3. Revenue build: hardware one-time + software recurring + marketplace/music
  4. Gross profit bridge (hardware vs. software margin blended)
  5. P&L (Income Statement)
  6. Headcount & OpEx schedule
  7. Cash flow / burn rate (given early-stage profile)
  8. NDR benchmarking table (as shown in deck, keeps model honest)
  9. Scenario toggle (Bear / Base / Bull)

## Frequently asked questions

### Is the Raydiant financial model free?

Yes. The Raydiant model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.