Advanced Revenue Management

Optimizing Financial Performance Through Innovative Solutions

ARM Expertise

Complex Revenue Allocation

Expertise in allocating revenue based on performance obligations and Stand-Alone Selling Price (SSP) for bundled products and services.

Multi-Element Arrangements

Proficient in handling revenue recognition for complex arrangements involving multiple deliverables and varying contract terms.

Subscription-Based Models

Experienced in implementing revenue recognition strategies for subscription-based services with various recognition triggers.

Industry-Specific Solutions

Tailored ARM solutions for various industries including SaaS, healthcare, professional services, and more.

Case Studies

SAAS Cyber Security Company

Challenge: Implement ARM for a company offering User Access Software and Professional Services as bundle purchases.

Solution:

  • Implemented revenue allocation based on performance obligations and SSP
  • Developed a fair value dimension to account for pricing differences based on client size
  • Handled complex pricing structure: $500,000 for 500-1,000 employees, $750,000 for 1,001-5,000 employees

Health Medical Company

Challenge: Design ARM system for a public company selling medical devices, medications, and consultations with various revenue models.

Solution:

  • Implemented multiple revenue recognition models:
    1. Individual Products: Revenue recognized upon shipment
    2. Bundled Products: Revenue allocated based on Fair Value, recognized upon shipment
    3. Subscription-based Medical Test: Complex recognition based on product shipment, test completion, and consultation timing

Custom Revenue Recognition Event Solution

Developed a sophisticated custom revenue recognition event system to handle the complex subscription-based medical test model:

  • Implemented multi-trigger recognition logic for monthly product shipments, quarterly tests, and consultations
  • Created a fallback mechanism to recognize revenue 60 days post-shipment if test/consultation not completed
  • Designed a flexible system to accommodate varying subscription lengths and cancellation scenarios

Professional Services Company

Challenge: Develop ARM system for a company transitioning from public to private equity ownership, offering various professional consultation services.

Solution:

  • Implemented diverse revenue recognition models:
    1. Retainer and Project Flat Fee: Ratable recognition over project timeline
    2. Retainer + Hourly Overage: Combination of ratable recognition and billable rate charges
    3. Media Buy: Recognition based on Project Percentage Complete
    4. Success Fee: Recognition upon successful project completion and payment receipt

Custom Revenue Recognition Event Solution

Engineered a custom revenue recognition event system to address the unique needs of the professional services industry:

  • Developed a configurable event-based system to handle multiple revenue streams simultaneously
  • Implemented a dynamic project percentage complete calculation for Media Buy recognition
  • Created a conditional recognition trigger for Success Fees, integrating project completion status with payment verification
  • Designed a hybrid recognition model for Retainer + Hourly Overage, combining time-based and event-based triggers