SO

Sourcepoint Financial Model

Two integrated products:

Dialogue - Consent Management Platform (CMP)

• Consumer-facing privacy notice and preference UI (browser, in-app iOS/Android, OTT, AMP).
• Captures, manages, and syndicates opt-in/opt-out consent signals to vendor ecosystems.
• Compliant with IAB TCF v2, US Privacy string (CCPA), and non-IAB vendors.
• Custom message builder, A/B testing, campaign management, branded white-label UX.
• Subject rights request management (email, SMS, phone).

Diagnose - Insights / Vendor Assessment

• Proprietary scanning technology; no on-page script required.
• Flags unauthorized vendors, data leakage, fraudulent consent strings, high-latency tags, high error-rate vendors.
• Benchmarks vendor prevalence across client and peer sites.
• Feeds curated vendor lists back into Dialogue CMP (automated feedback loop).

Value proposition: transparent, compliant consumer data experience that improves consent rates and protects brands from regulatory fines.

No explicit TAM/SAM/SOM figures in deck. Contextual market signals provided:

• 83% of consumers concerned about data privacy.
• 66% believe more governments should pass consumer privacy legislation.
• Publisher revenue decreases 52% on ad impressions without cookies.
• $26.5B of location-based advertising put at risk by Apple iOS changes.
• GDPR fines: British Airways $230M, Marriott $123M.
• Regulatory footprint: GDPR (EU), CCPA (CA), 16+ US state laws proposed, 20+ international jurisdictions.

Not explicitly stated in deck. Inferred from product and SaaS positioning:

• Enterprise SaaS subscription - annual contracts with publishers, media owners, and brands; likely per-property or per-seat licensing. Rationale: deck describes "enterprise SaaS platform"; product includes campaign management, A/B testing, subject rights management - features priced at enterprise tier.
• Two SKUs: Dialogue CMP (core) + Diagnose Insights (upsell/add-on). Rationale: products presented separately with distinct feature sets and branding; Diagnose presented as add-on to Dialogue workflow.
• Professional services / implementation fees likely given white-label CMP customization and GDPR/CCPA compliance complexity. Rationale: standard for enterprise regtech/adtech deployments.
• No pricing tiers, ACV, or contract terms disclosed.

• "Since 2015, our technology has been deployed across the world's largest brands". No customer count, revenue, or growth rates given.
• No ARR, MRR, customer logos, retention rate, NRR, or growth metrics disclosed anywhere in the deck.
• Demo customer referenced in Diagnose dashboard: "REDBUD" (appears to be a named client example on the Diagnose Compliance dashboard image).

Not explicitly named in deck. Moat articulated through:

• First-mover claim: "first to combine consumer privacy compliance and user experience optimization".
• Proprietary scanning technology (no on-page script required - deployment advantage).
• Automated Dialogue + Diagnose feedback loop as integrated platform vs. point solutions.
• Founder pedigree as differentiation: Admeld ($400M to Google 2011), LiveRail (to Facebook 2014), DoubleClick (to Google) - deep adtech/martech relationships implied.

Team:

• Ben Barokas - Co-Founder & CEO. Founded and sold Admeld to Google ($400M, 2011); post-acquisition GM Global Marketplace Development at Google. Prior: JumpTV, AOL.
• Brian Kane - Co-Founder & COO. COO of LiveRail (acq. Facebook 2014) and Admeld (acq. Google 2011); 9 years at DoubleClick (early employee).

• Archetype + why: Enterprise SaaS ARR model. Company self-describes as "enterprise SaaS platform", sells annual subscriptions to publishers/brands, with two distinct product lines (Dialogue CMP + Diagnose Insights). Standard SaaS ARR / cohort build is appropriate. No M&A, SPAC, or marketplace structure indicated.

• Forecast horizon & granularity: 5-year annual model (Year 1–5), with Year 1 broken into monthly columns for cash flow / runway visibility. Given no disclosed traction, Year 1 should be treated as near-term build with sales ramp assumptions.

• Key drivers & assumptions:
• New logos per year (enterprise sales): Start with ~10–20 new enterprise clients in Year 1, scaling 50–80% YoY as regulatory tailwinds drive urgency. Rationale: adtech/regtech sales cycles are 3–6 months; two ex-adtech founders with existing relationships accelerate early pipeline.
• Average contract value (ACV): $60K–$120K/year for mid-market publishers; $150K–$300K+ for large enterprise/global brands. Rationale: enterprise CMP+compliance suite with GDPR/CCPA coverage; comparable to OneTrust, Didomi enterprise pricing.
• Product mix - CMP-only vs. CMP+Diagnose bundle: 60% CMP-only, 40% bundle in Year 1; bundle share grows to 60%+ by Year 3 as Diagnose upsell matures. Rationale: Diagnose presented as incremental add-on value proposition.
• Gross revenue retention (GRR): 85–90%. Rationale: enterprise SaaS with compliance mandates creates stickiness; churn risk is customer budget cuts or in-house builds.
• Net revenue retention (NRR): 105–115%. Rationale: upsell from CMP-only to CMP+Diagnose bundle, plus property/site count expansion within accounts.
• Gross margin: 70–75%. Rationale: SaaS software with minimal COGS beyond hosting and support; custom implementation work reduces margin from pure-software 80%+ ceiling.
• Sales & marketing as % of revenue: 40–50% in early years, declining to 25–30% at scale. Rationale: enterprise SaaS with specialist sales force targeting regulated publishers/brands.
• R&D as % of revenue: 20–25%. Rationale: proprietary scanning tech (Diagnose) + IAB compliance roadmap requires ongoing engineering.
• G&A as % of revenue: 10–15% declining with scale.
• Headcount: Seed team of ~20–30 FTEs at model start (founded 2015, no headcount disclosed); sales capacity model should drive new logo assumptions.

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: slow enterprise sales cycle (new logos -40% vs. Base), ACV at low end ($60K), GRR 80% (non-compliance budget cuts or point-solution displacement).
• Base: 50–80% YoY logo growth, ACV midpoint, GRR 88%, NRR 108%.
• Bull: regulatory acceleration drives shortened sales cycles, ACV at high end, NRR 120%+ (Diagnose upsell broadly adopted, international expansion adds new logos faster).
• Flex variables: new logo count, ACV, NRR, gross margin (if professional services mix rises).

• Required sheets / outputs:

1. Assumptions - all drivers in one place, clearly tagged.
2. Revenue build - new logos, logo cohorts, ARR bridge (New ARR + Expansion - Churn), MRR waterfall for Year 1.
3. P&L - revenue, COGS, gross profit, S&M, R&D, G&A, EBITDA, net income.
4. Headcount plan - by function (Sales, CS, Eng, G&A), tied to revenue capacity model.
5. Cash flow / runway - operating CF, capex, cash balance. Critical given no funding ask disclosed.
6. KPI dashboard - ARR, NRR, GRR, CAC, LTV, LTV:CAC, payback period, logo count, ACV.