UK and US SOM Calculation:

SOM = Potential ARR of MONET

Calculation:

• Targeting 5%: 850 UK agencies + 2,700 US agencies = 3,550 agencies

Revenue Breakdown:

• Subscription fees:

  $654 per month × 3,550 agencies = $2,321,700 MRR

• Financing fees:

  $395,000 average borrowing per agency × 2% fee × 3,550 agencies = $28,045,000 MRR

Total Revenue:

• Total MRR: $2,321,700 (subscription) + $28,045,000 (financing) = $30,366,700 MRR

• Total ARR:

  $30,366,700 MRR × 12 = $364,400,400 ARR

This gives a potential ARR of $364.4 million from targeting 5% of the UK and US markets.

UK SOM Calculation:

• SOM Target: Immediate opportunity to capture ARR from 5% of the UK media agency market.
  • Target MRR: £5,525,000 = ARR of £66.3 million.

UK Media Agency Market:

• Number of Agencies: 17,000 active agencies growing at 11% CAGR.
  • Focus: Middle-class agencies with turnovers of £5-10m. This is the most common segment of UK agencies.

Penetration Rate:

• Targeting 5% of the market = 850 agencies.

Revenue Breakdown:

• Subscription Fees:
  • Subscription Fee per Agency: £500 per month.
  • Total Subscription MRR: 850 agencies × £500 = £425,000 MRR.
  • Total Subscription ARR: £425,000 MRR × 12 months = £5.1 million ARR.
• Financing Fees:
  • Lower Quartile Loan Balance per Agency: £300,000 per month.
  • Fee per Loan: 2% = £6,000 per agency per month.
  • Total Financing MRR: 850 agencies × £6,000 = £5.1 million MRR.
  • Total Financing ARR: £5.1 million MRR × 12 months = £61.2 million ARR.