Revenue Model
Condelo operates a hybrid revenue model combining SaaS subscriptions, usage-based pricing, and revenue share components. The base SaaS subscription covers platform access and a set number of document ingestions per month. Usage-based charges apply for additional document processing, API calls, and advanced AI model usage beyond included quotas. Revenue share arrangements with implementation partners create an additional income stream while incentivising ecosystem growth. This blended approach provides predictable recurring revenue while capturing upside from high-usage customers.
Projections Table
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| ARR | £120K | £840K | £3.2M |
| Customers | 5 | 22 | 60 |
| Gross Margin | 65% | 72% | 75% |
Key Assumptions
Unit Economics
ACV
£20K average contract value today, with a path to £40K as enterprise features and multi-module deployments drive higher deal sizes.
CAC
£15K blended customer acquisition cost, improving over time with brand recognition, content marketing, and partner referrals.
LTV
£72K lifetime value at 90% gross retention, reflecting the sticky nature of compliance tools once embedded in workflows.
LTV:CAC Ratio
4.8x target ratio, well above the 3x benchmark for healthy SaaS businesses, indicating efficient capital deployment.
Sensitivity Analysis
Our projections are modelled across three scenarios. The base case assumes steady execution against the pipeline with a 12-month enterprise sales cycle. The upside case assumes faster-than-expected adoption driven by regulatory tailwinds and a shorter 9-month sales cycle, resulting in Year 3 ARR of £4.8M. The downside case assumes a longer 15-month sales cycle and lower conversion rates, yielding Year 3 ARR of £1.8M — still above break-even. In all scenarios, the 18-month runway provides sufficient time to reach cash-flow positive operations or secure follow-on funding.