# Squire Financial Model Vertical SaaS + payment processing platform built exclusively for barbershops and men's salons. - Canonical: https://finamodel.com/startups/squire - Excel download: https://finamodel.com/startup-models/squire.xlsx - Category: Fintech - Model type: SaaS ARR / Valuation - Funding round: Series D - Funding: $59M - Founded: 2022 - Geography: US (Denver location shown in app; no international markets mentioned). - Customer: B2B ## About the company Squire is a vertical SaaS and payment-processing platform built for barbershops and men’s salons. Its operating system supports appointments, point of sale, customer management, and the financial workflows of a service business. The company earns recurring subscription revenue from shops and a take rate on payments processed through its Commander POS. As a shop matures on the platform, both software ARPU and payment volume can expand, creating strong cohort dynamics. The model should forecast active shops, subscription ARPU, retention, appointments or transactions per shop, average ticket, and gross payment volume. Apply a net payment take rate, then separately model hardware, payment processing, support, and sales costs to show blended SaaS and payments margin. ## 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 "First one-stop-shop for barbers and men's salons" (slide 3). Core modules: - CRM, POS, Analytics, Booking, Payment, Discovery (slide 3). - Commander Management System: tablet POS hardware + card reader + web/mobile dashboard (slide 5). - Consumer White Label App: end-client booking, payment, tipping (slide 6). - Key pitch: replaces 9+ fragmented apps (Instagram, Yelp, Mailchimp, StyleSeat, Boulevard, Clover, ADP Mobile, Self Employed, QuickBooks) with a single Squire app (slide 4). ## Revenue model Two explicit revenue streams identified: 1. **SaaS subscription** ("Vertical SAAS", slide 5) - recurring monthly fee per shop (ARR metric used throughout; specific subscription price not disclosed in deck). 2. **Payment processing** ("+ Payment Processing", slide 5) - take-rate on transactions processed through the Commander POS and consumer app. Consumer-side transaction sample visible in app mockup (slide 6): service $20 ("Buzz"), tip 20% = $4, taxes & fees $1, total $25. Suggests low-ATV per haircut service. Subscription pricing likely tiered by barber seat count or feature tier, typical of vertical SaaS for SMB salons; exact pricing not disclosed. Payment take-rate likely in the 2–3% range, consistent with SMB vertical SaaS payment processing peers (Toast, Mindbody, etc.). ## Traction & metrics Slide 8 ("Last 12 Months", Aug 2019 – Jul 2020): - Two bar charts: **New Shops** added per month and **New ARR Bookings ($K)** per month. - Both charts show strong sequential growth from May–Jul 2020 after a sharp dip in Apr 2020 (COVID lockdown). - **"June and July%+ YoY Growth!"** - specific % blacked out. - Apr 2020 New Shops bar is near-zero (lockdown). May–Jul 2020 shows recovery spike above prior year levels. - Specific bar values are redacted (black boxes); direction is unambiguously up-and-to-the-right with COVID dip. Slide 11 ("Shop Growth" - longer-term view, 4 bars each): - New Shops: 4 periods shown, growing from a small base to a materially larger bar. Exact values redacted. - New ARR Bookings ($M) - note unit is **$M** not $K as in slide 8, implying meaningful scale by latest period. Values redacted. Slide 9 (COVID-19 Response): - Waived all subscription fees until December 2020. - Launched Online Gift Cards for revenue during closure. - Released COVID Waiver Forms and Virtual Waiting Room features. ## Unit economics Slide 10 ("Shops Grow Over Time"): - **Net Retention** line chart by cohort tenure (3 Mo, 6 Mo, 9 Mo, 12 Mo, 15 Mo+): upward-sloping - shops expand revenue over time (net retention > 100% implied by slope). Specific % values redacted. - **Monthly ARPU** line chart by cohort tenure (3 Mo, 6 Mo, 9 Mo, 12 Mo, 15 Mo+): upward-sloping - ARPU grows as shops mature on platform. Specific $ values redacted. No CAC, LTV, or gross margin figures disclosed. ## Competition / moat Slide 4: competitive moat framed as consolidation - barbershops without Squire need 9+ apps; with Squire, they need 1. Named competitors visible in "without" screenshot: Instagram, Yelp, Mailchimp, StyleSeat, Boulevard, Clover, ADP Mobile, Self Employed, QuickBooks. Moat levers implied: data network (CRM + booking + payments in one system), switching cost (all data locked in), consumer discovery marketplace (demand-side stickiness). ## Team & funding ask / use of funds Slide 7: - **Songe LaRon** - CEO; Yale Law School, Skadden (YC alumni marker shown). - **Dave Salvant** - President; Wisconsin School of Business, J.P. Morgan (YC alumni). - YC batch indicated (Y logo). - Advisors / press mentions: BarberEvo, The Rise of Squire, Richie the Barber, Grey Matter LA, Brittany Fitapelli, Robert Braid, Zach Ramsey, Josh O'Meara-Patel. --- ## Recommended financial model - **Archetype + why:** Vertical SaaS ARR model with embedded payments revenue layer. Squire has two distinct revenue streams (subscription + payment take-rate) that compound together as shops mature. The cohort expansion dynamic (rising Net Retention + rising ARPU over tenure) makes a cohort-based ARR model the right spine, with a separate payments GMV → revenue line. - **Forecast horizon & granularity:** 3 years (2020–2022), monthly for Year 1, quarterly for Years 2–3. Monthly granularity needed to capture COVID recovery shape and new shop onboarding cadence visible in slide 8. - **Key drivers & assumptions:** - **New shops added per month** - direction and shape visible from slide 8 bar chart (strong May–Jul 2020 recovery); specific unit counts redacted → starting from ~30–50 new shops/month at peak based on bar chart relative sizing; refine with real data. - **Churn rate (gross)** ~5% monthly at cohort month 1, declining; net retention chart implies gross churn is more than offset by expansion. - **Net Revenue Retention %** shown as upward-sloping by cohort on slide 10; specific values redacted → exits 15 Mo+ cohort at ~110–120% NRR, consistent with vertical SaaS expansionary dynamics. - **Monthly ARPU by cohort age** upward-sloping; starting $ redacted → ~$200–$350/month at month 3, growing to ~$400–$600/month at 15 Mo+, based on industry comps and payment processing supplement. - **Payment GMV per shop per month** ~$8,000–$15,000 based on haircut ATV ~$25 × ~400–600 appointments/month for a small shop. - **Payment take-rate** 2.5%, consistent with vertical SaaS SMB payment peers. - **SaaS subscription fee** ~$150–$200/month per shop base fee; not disclosed in deck. - **COVID subscription fee waiver** all fees waived through Dec 2020 → model should zero-out subscription revenue Apr–Dec 2020 for existing shops; payment revenue partially recovers as shops reopen May–Jul 2020. - **COGS / gross margin** SaaS gross margin ~70–75%; blended gross margin lower (~50–60%) once payment processing COGS included. - **S&M / onboarding cost per shop (CAC)** ~$500–$1,500; not in deck. - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** New shops follow observed Aug-19–Jul-20 trajectory; ARPU expansion per slide 10 shape; NRR ~115%. - **Bull:** Post-COVID acceleration sustains; NRR reaches 125%; payment GMV per shop higher end of range. - **Bear:** COVID second wave / re-lockdowns suppress new shop adds through H1 2021; subscription fee waivers extend; NRR ~100%. - **Required sheets / outputs:** 1. **Assumptions** - all drivers with / tags and toggle for scenarios. 2. **Shop Cohort Model** - monthly cohort waterfall: new shops added, churned, surviving; ARPU by cohort age → MRR/ARR per cohort. 3. **Payments Revenue** - GMV per active shop × take-rate → payments revenue. 4. **Revenue Bridge** - SaaS subscription + payments = total revenue; COVID fee-waiver adjustment line. 5. **P&L Summary** - Revenue, COGS (split SaaS / payments), Gross Profit, S&M, R&D, G&A, EBITDA. 6. **KPI Dashboard** - Total Active Shops, MRR, ARR, Blended ARPU, NRR, Gross Margin, Payment GMV. ## Frequently asked questions ### Is the Squire financial model free? Yes. The Squire 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.