Rippling (Series B) Financial Model

• Single system of record for employee data; any employee lifecycle event (hire, promotion, offboard, location change, etc.) automatically propagates across Payroll, Benefits, Computers & Security, and Apps & Access.
• Four product lines: (1) Payroll, (2) Benefits, (3) Computers & Security (IT/MDM), (4) Apps & Access (SSO/provisioning).
• ARR product mix (approximate from pie chart, slide 4): IT largest slice (~30%), Core HRIS (~25%), Payroll (~20%), Benefits (~15%), Reseller (~10%). - note: exact percentages not labeled; visual estimates only.
• Customer ratings: 4.9 stars on Software Advice, G2 Crowd, and Capterra; PC Mag Editor's Choice 2019.

• Multi-product SaaS; revenue described as "Total Bookings ARR."
• Product lines each carry separate ARR; cross-sell is an explicit revenue motion (shown as a bookings component in the template slides).
• Reseller channel present as a distinct ARR category.
• Customers span SMB and Mid-Market segments; ARR Mix by Segment donut chart shows MM is the larger slice.
• Industry mix: Non-Tech customers appear to be a larger share than Tech (from stacked bar, slide 5).
• Specific pricing ($/employee/month) not disclosed in deck.

• ARR: "Double Digit Millions" - bar chart shows consistent month-over-month growth with steep upward slope to current period. No precise figure given; note states "Financial figures in this document are under review and subject to change."
• Customer count: "Several thousand customers across diverse industries."
• Employees: ~250.
• Investors (prior rounds): Kleiner Perkins, Y Combinator, Threshold, Initialized Capital.

Important caveat: Slides 6–14 are explicitly labeled "Illustrative numbers shown, not actuals" and use "[Acme Company]" placeholder branding. These are a SaaS metrics template Rippling included to show investors how they would present metrics - NOT real Rippling data. The illustrative figures below are included for model structure reference only, not as factual inputs:

• Illustrative total ARR: $2.0M (June 2020) [template] - disregard as actual; real ARR is "Double Digit Millions."
• Illustrative 12-month ARR growth: 3.0x [template]
• Illustrative Magic Number: 1.0 [template]
• Illustrative Net Dollar Retention: 120% (illustrative key metric) / 125–160% range shown in illustrative charts [template]
• Illustrative Gross Margin: 85% [template]
• Illustrative Quick Ratio: 8–10x range [template]

All figures from slides 7–14 are illustrative only (see §5 caveat). No real unit economics disclosed.

• Cash-on-cash sales payback: The deck defines this as monthly cash-in from sales / monthly sales headcount expense. Illustrative target ratio shown is 1.0x (reps pay for themselves in month zero).
• Gross Margin: 85% [illustrative only, slide 7]
• Magic Number definition: (current quarter estimated revenue − prior quarter revenue, annualized) / prior quarter S&M expense. Illustrative values ~1.0–1.2x. [slide 12 - illustrative]
• Net Dollar Retention definition: Total Bookings ARR for cohort (after expansion, contraction, cross-sell, churn) in current period / same cohort ARR 12 months prior. Illustrative estimate ~125% for new cohorts. [slide 14 - illustrative]

Inferred from product framing: Rippling positions against fragmented point solutions (separate payroll, HRIS, MDM, and SSO tools). The moat is the centralized employee data layer - workflow automation triggered by a single source of truth.

• Offices: San Francisco (HQ), Bangalore.
• Headcount: ~250 employees.
• Existing investors: Kleiner Perkins, Y Combinator, Threshold, Initialized Capital.
• Founder / executive team: Referenced via link ("Meet Our Executive Team") but not named in slides.

• Archetype + why: Multi-product B2B SaaS ARR model with per-employee-per-month (PEPM) unit economics. Rippling has four distinct product lines each with separate ARR, a cross-sell expansion motion, and a reseller channel - the model must track ARR by product/segment and net expansion separately from new logo ARR. A cohort-based NDR expansion layer is explicitly how Rippling thinks about growth (evidenced by the illustrative slides showing this exact framework).

• Forecast horizon & granularity: Monthly for Year 1–2; quarterly for Year 3. 3-year horizon is standard for a Series B. Monthly granularity needed to model the ARR waterfall (new logo, expansion/contraction, cross-sell, churn) matching the format shown in slide 8.

• Key drivers & assumptions:

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: 2.5x YoY ARR growth, 120% NDR, Magic Number 1.0, gross margin 82%.
• Bull: 3.0x YoY ARR growth, 130% NDR (faster cross-sell), gross margin 85%, sales efficiency improves to 1.2x.
• Bear: 1.8x YoY ARR growth, 110% NDR (slower expansion), churn increases, gross margin 78% (payroll/benefits drag).

• Required sheets / outputs:

1. Assumptions - all drivers with scenario toggle (Base/Bull/Bear).
2. ARR Waterfall - monthly: beginning ARR, new logo, expansion/contraction, cross-sell, logo churn, product churn, ending ARR (matches slide 8 template structure).
3. ARR by Product - four product lines + reseller tracked separately.
4. ARR by Segment - MM vs. SMB.
5. Cohort NDR table - monthly cohorts, 12-month expansion to 125% NDR target.
6. P&L - revenue (= ARR recognized), COGS, gross profit, S&M, R&D, G&A, EBITDA.
7. Headcount plan - by department, driving S&M/R&D/G&A.
8. Cash & Runway - burn rate, cash balance, months of runway post-raise.
9. SaaS Metrics Summary - Quick Ratio, Magic Number, NDR, CAC payback, LTV/CAC (once pricing assumed).
10. Dashboard - KPI summary cards.