Financial Overview¶

Executive Summary¶

This document provides an overview of BrainSAIT's financial model, revenue projections, and key financial metrics for planning and investor communications.

Business Model¶

Revenue Streams¶

Stream	% of Revenue	Model
Platform Subscriptions	70%	Recurring
Per-Claim Fees	15%	Usage-based
Professional Services	10%	Project-based
Training & Support	5%	Recurring/One-time

Revenue Recognition¶

Subscriptions: Recognized monthly over term
Per-Claim: Recognized as processed
Services: Recognized on delivery milestones
Training: Recognized on completion

Revenue Projections¶

5-Year Forecast¶

Year	ARR (SAR)	Growth	Customers
Year 1	10M	-	25
Year 2	30M	200%	75
Year 3	70M	133%	175
Year 4	130M	86%	350
Year 5	220M	69%	600

Revenue by Segment¶

Segment	Year 1	Year 3	Year 5
Enterprise	60%	50%	45%
Mid-Market	30%	35%	35%
SME	10%	15%	20%

Unit Economics¶

Customer Acquisition Cost (CAC)¶

Segment	CAC	Payback
Enterprise	150K SAR	12 months
Mid-Market	50K SAR	8 months
SME	5K SAR	4 months
Blended	40K SAR	9 months

Lifetime Value (LTV)¶

Segment	ARPU/Year	Lifetime	LTV
Enterprise	1.5M SAR	5 years	7.5M SAR
Mid-Market	300K SAR	4 years	1.2M SAR
SME	50K SAR	3 years	150K SAR

LTV/CAC Ratio¶

Segment	LTV/CAC	Target
Enterprise	50x	>3x
Mid-Market	24x	>3x
SME	30x	>3x
Blended	35x	>3x

Gross Margin Analysis¶

Revenue Breakdown¶

Component	% of Revenue
Software Revenue	85%
Services Revenue	15%

Cost of Goods Sold¶

Cost Item	% of Revenue
Infrastructure	10%
Support	8%
Third-party licenses	5%
Services delivery	7%
Total COGS	30%

Gross Margin¶

Software: 85%
Services: 30%
Blended: 70%

Operating Expenses¶

Expense Categories¶

Category	Year 1	% Rev	Year 3	% Rev
R&D	4M	40%	14M	20%
Sales & Marketing	3M	30%	21M	30%
G&A	1.5M	15%	7M	10%
Total OpEx	8.5M	85%	42M	60%

R&D Investment¶

Product development: 60%
AI/ML research: 25%
Platform: 15%

Sales & Marketing¶

Sales team: 50%
Marketing: 30%
Customer success: 20%

Profitability Path¶

Path to Profitability¶

Metric	Year 1	Year 2	Year 3
Revenue	10M	30M	70M
Gross Profit	7M	21M	49M
OpEx	8.5M	20M	42M
EBITDA	(1.5M)	1M	7M
EBITDA Margin	-15%	3%	10%

Break-Even Analysis¶

Monthly burn: 700K SAR (Year 1)
Break-even MRR: 2.5M SAR
Expected timing: Month 18

Cash Flow¶

Cash Requirements¶

Phase	Duration	Investment
Seed	Completed	5M SAR
Series A	Month 12	25M SAR
Series B	Month 36	60M SAR

Use of Funds¶

Series A (25M SAR): - Product development: 40% - Sales & marketing: 35% - G&A: 15% - Working capital: 10%

Key Metrics¶

SaaS Metrics¶

Metric	Year 1	Target
MRR Growth	25%/mo	>20%
Gross Margin	70%	>70%
CAC Payback	9 mo	<12 mo
LTV/CAC	35x	>3x
Net Revenue Retention	120%	>100%
Gross Revenue Retention	95%	>90%

Operational Metrics¶

Metric	Year 1	Target
Magic Number	0.8	>0.75
Burn Multiple	2.0	<2.0
Rule of 40	35	>40

Valuation Considerations¶

Comparable Multiples¶

Metric	Healthcare SaaS	AI Premium
Revenue Multiple	8-12x	+20-30%
ARR Multiple	10-15x	+20-30%

Valuation Drivers¶

Positive: - High growth rate - Strong unit economics - AI technology premium - Saudi market opportunity - Regulatory tailwinds

Risks: - Market concentration - Competitive dynamics - Execution risk - Regulatory changes

Financial Controls¶

Budgeting Process¶

Annual budget cycle
Quarterly reviews
Monthly reporting
Variance analysis

Approval Authority¶

Amount	Approver
<10K SAR	Manager
10-50K SAR	Director
50-200K SAR	VP
>200K SAR	CEO/CFO

Confidential - For Internal Use Only

Last updated: January 2025