# Tappa Financial Model Mobile keyboard SDK that monetises daily keyboard opens via programmatic/agency advertising, search revenue, and first-party audience data insights sold to SDK partners. - Canonical: https://finamodel.com/startups/tappa - Excel download: https://finamodel.com/startup-models/tappa.xlsx - Category: Dev Tools - Model type: SaaS ARR / Valuation - Funding round: Seed - Funding: $4.9M - Founded: 2024 - Geography: Primary - US (30% of audience targeted); also UK/international (Real Madrid partnership implies EU/global reach). - Customer: B2B2C ## About the company Tappa is a mobile keyboard SDK that turns frequent keyboard opens into advertising, search, and audience-data opportunities for partner apps. It shares up to half of this revenue with SDK partners while helping them re-engage users. The platform recorded roughly 230 million monthly keyboard opens by August 2023. Programmatic advertising, direct agency campaigns, search revenue, and future data insights monetize the daily active keyboard audience. The model is an advertising-yield forecast: daily active keyboard users, opens, yield, partner share, search RPM, and agency deals determine revenue. Organic user growth, ad fill, and data-product adoption drive 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 - Tappa is a third-party mobile keyboard (iOS/Android) embedded via an SDK into partner apps. - Users open the keyboard ~70x/day; each open is an ad/search impression and a re-engagement touchpoint for the SDK partner. - Core value to SDK partners: (1) user re-engagement back to their brand app, (2) audience insights lost after Apple's ATT (App Tracking Transparency) changes in 2021, (3) revenue share of up to 50% of advertising and search income. - Tappa Insights: proprietary ML product using first-party keyboard data to generate KPIs and audience segments for partners. Go-live Q1 2024. Positioned alongside Adjust ($1B acquisition by AppLovin) and AppsFlyer ($2B valuation) as comparable data-asset plays. ## Revenue model Three revenue streams (all from keyboard inventory): 1. **Programmatic advertising** - automated real-time auction of ad slots on Tappa keyboards. Daily net yield for US users: ~$0.0238/user (ca. 2.38 cents/DAKU). Q4 roll-out to all Tappa keyboards targeting >100k DAKU (Daily Active Keyboard Users). 2. **Agency advertising** - direct-sold ad slots at premium CPMs above programmatic floor. First target deal: Hewlett Packard or equivalent brand at ca. $25k. 3. **Search revenue** - revenue share from a search provider embedded in the keyboard. Target: migrate to Yahoo or Google; target to grow search 2x existing volumes. 4. **Tappa Insights (future)** - B2B data/analytics product sold to SDK partners. Revenue model not specified; likely subscription or CPM-data licensing. Positioned as a "lucrative revenue stream for the future". 5. **SDK Partner revenue share** - partners receive up to 50% of ad/search income, so Tappa retains the remainder. ## Traction & metrics - Keyboard opens: ~230M per month by Aug 2023; up >60% since start of 2023. - Monthly keyboard opens Jan 2022: ~30M; by Aug 2023: ~230M. - UA spend 2022: >$600k (excl. Real Madrid guarantees). - UA spend 2023 YTD (to ~Aug 2023): $116k - audience growing organically while spend cut ~80%. - Programmatic pilot daily net yield (US users): ca. 2.38 cents/DAKU. - Q4 roll-out target: >100k DAKU on programmatic. - Named SDK partner: Real Madrid (migrating to programmatic Q4). - Tappa Insights go-live: Q1 2024. - Target MAU from SDK partners: 10M+ MAU by mid-2024. - US audience target: ~30% of total. ## Unit economics - Programmatic yield: ~$0.0238/DAKU/day (net). Annualised at 100k DAKU: ~$868k gross revenue/year (before partner revenue share). - UA cost 2023 YTD: $116k for ~Jan–Aug 2023 period, implying audience growth is largely organic. - Partner revenue share: up to 50% of ad/search income paid to SDK partners; net Tappa margin on programmatic ~50% of yield. - No CAC, LTV, or gross margin % explicitly stated. ## Competition / moat - Moat claims: first-party keyboard data sidesteps Apple ATT (2021) restrictions; proprietary ML for autocorrect and audience segmentation. - Implicit moat: daily keyboard engagement (70x/day) creates high-frequency touchpoint hard to replicate. - Comparable data/attribution companies cited as moat validation: Adjust ($1B acq. by AppLovin), AppsFlyer ($2B val'n). - No named direct competitors in the deck. ## Team & funding ask / use of funds --- ## Recommended financial model - **Archetype + why:** Usage-based / advertising yield model with a B2B SaaS layer. Primary driver is DAKU (Daily Active Keyboard Users) × daily yield per user across three revenue lines (programmatic CPM, search RPM, future data/insights subscription). Similar to an ad-supported mobile app P&L but with an SDK distribution channel and partner revenue share. Not a SaaS ARR model (revenue is volume × yield, not subscription seats). Not M&A or SPAC. - **Forecast horizon & granularity:** Monthly for 2024–2026 (24–30 months); quarterly roll-up summary. Deck's own targets are 6–9 months out (Q4 2023–mid-2024), so the model should anchor to those milestones and then project 2 further years. - **Key drivers & assumptions:** | Driver | Seed value / note | | -- | -- | | Monthly keyboard opens (Aug 2023) | ~230M | | MoM organic growth in keyboard opens | ~5% [chart shows strong upward trend in 2023 H2] | | DAKU (Daily Active Keyboard Users) | ~100k target Q4 2023 | | DAKU as % of monthly keyboard opens | ~100k DAKU × 30 = 3M/month vs 230M opens → ~1.3%; implies most opens are from a large passive install base | | Programmatic net yield per DAKU per day (US) | $0.0238 | | US % of total DAKU | 30% target | | Blended global yield per DAKU per day | ~$0.012–$0.016 (US yield discounted for non-US mix) | | Agency revenue | Target first deal ~$25k (Q4 2023) | | Agency ramp | Start minimal; scale to $X/month as more agency deals close | | Search revenue contribution | Not quantified; model as % of programmatic revenue initially | | SDK partner revenue share | 50% of ad+search revenue | | MAU from SDK partners | Target 10M+ MAU by mid-2024 | | Tappa Insights revenue | $0 until Q1 2024 go-live; ramp TBD | | Headcount cost | 4 new senior SDK sales consultants (commission-heavy) | | UA spend | 2023 run-rate ~$14k/month ($116k YTD ÷ 8 months) | - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** DAKU grows to 200k by end-2024; blended yield $0.015/DAKU/day; search 2x; 2 agency deals/year; Insights launches Q1 2024 at modest B2B pricing. - **Bull:** DAKU reaches 500k by end-2024 (strong SDK partner pipeline, Real Madrid + new verticals); US mix rises to 40%; programmatic yield improves via ML ad optimisation; Insights gains 5+ paying partners. - **Bear:** DAKU stagnates at 100k; programmatic yield compresses to $0.010 (CPM market softness); no agency deals close; Insights delayed to Q3 2024. - Flex variables: DAKU ramp speed, US/non-US mix, programmatic yield, agency deal cadence, Insights revenue per partner. - **Required sheets / outputs:** 1. Assumptions - all drivers in one place with toggle for Base/Bull/Bear. 2. Audience Model - monthly DAKU by geo (US vs. non-US), MAU from SDK partners. 3. Revenue Build - Programmatic (DAKU × yield × days), Search (indexed to programmatic), Agency (deal-by-deal), Insights (seat/partner-based SaaS when launched). 4. Partner Revenue Share - 50% split applied to programmatic + search. 5. P&L - Gross revenue, partner share (COGS), gross profit, opex (headcount, UA, tech/infra, admin), EBITDA. 6. UA & CAC Tracking - monthly UA spend, new DAKU added, blended CAC. 7. Cash Flow / Runway - if funding ask is added. 8. KPI Dashboard - DAKU, yield/DAKU, gross profit per DAKU, MAU, US%, revenue by stream. ## Frequently asked questions ### Is the Tappa financial model free? Yes. The Tappa 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.