Gbadamosi Iqmat Opeyemi

PROJECT OVERVIEW This project analyzes a Kaggle dataset to evaluate quarterly business performance for 2023, focusing on revenue growth, Operating expenses, churn, and profitability. The goal is to provide data-driven insights that support better financial and strategic decision-making. Tools used: Microsoft Excel ( Data Validation, Basic formulas( IF & 0R statement, SUM, conditional formatting, Pivot table) Data Cleaning and Analysis: • • • • • • Checked for missing values. Converted text to number in the Amount column. Created a new column in the dataset named “Quarter” IF(OR(B2="January",B2="February",B2="March"),"Q1", IF(OR(B2="April",B2="May",B2="June"),"Q2", IF(OR(B2="July",B2="August",B2="September"),"Q3","Q4"))) SUM – to compute totals Pivot tables – used to summarize and aggregate the quarterly data Quarterly Business Report - 2023 Q1 Description Q2 Q3 Q4 Bookings $ 6,476,556 $ 3,506,929 $ 7,527,405 $ 3,863,034 Renewals $ 3,443,531 $ 7,687,379 $ 3,831,186 $ 7,714,225 Total Revenue $ 9,920,087 $ 11,194,308 $ 11,358,591 $ 11,577,259 Revenue Churn $ 242,784 $ 338,872 $ 170,920 $ 288,194 Net Revenue after churn $ 9,677,303 $ 10,855,436 $ 11,187,671 $ 11,289,065 Fixed Expenses Insurance Internet/Phone Loans Rent Salaries Utilities $ $ $ $ $ $ $ 8,763,701 24,000 8,400 42,000 105,000 8,557,288 27,013 $ $ $ $ $ $ $ 8,795,447 24,000 8,400 42,000 105,000 8,588,516 27,531 $ $ $ $ $ $ $ 9,502,732 24,000 9,000 42,000 105,000 9,297,240 25,492 $ $ $ $ $ $ $ 9,298,705 24,000 9,300 42,000 120,000 9,077,480 25,925 Variable Expenses Benefits Retirement Supplies Travel $ $ $ $ $ 1,526,116 1,032,776 429,517 34,028 29,795 $ $ $ $ $ 1,682,963 1,109,388 505,410 35,651 32,514 $ $ $ $ $ 1,513,055 1,022,518 421,730 38,107 30,700 $ $ $ $ $ 1,618,048 1,076,103 476,376 36,088 29,481 Operating Expenses $ 10,289,817 $ 10,478,410 $ 11,015,787 $ 10,916,753 Net Profit $ $ 377,026 $ 171,884 $ 372,312 (612,514) Table 1.0 The analysis shows that total revenue increased steadily from Q1 to Q4 .However, operating expenses remained consistently high, significantly impacting profitability particularly in Q1, where expenses exceeded revenue, resulting in a net loss. Data visualization (Charts & Dashboard) The bar chart showed that bookings drive growth (Q1 & Q3), while renewals provide greater stability (Q2 & Q4). The line graph shows that total revenue showed a steady upward trend from Q1 to Q4, indicating consistent demand and effective revenue generation .Also,the business operating expenses remained consistently high, limiting profit growth despite rising revenue. Description Net Profit Margin Operating Expenses Ratio Revenue Churn Rate Salaries to Revenue Ratio Q1 -6% 106% 2% 88% Q2 3% 97% 3% 79% Q3 2% 98% 2% 83% Q4 3% 97% 2% 80% Table 2.0 Table 2.0 depicted salaries represent the largest cost component significantly impacting operating margins. Additionally, Revenue churn exists but is manageable, with net revenue increasing after churn adjustments. A net loss was recorded in Q1, followed by modest profitability in Q2–Q4, showing recovery but fragile margins. BUSINESS RISK • High fixed cost structure increases vulnerability during low-revenue quarters. • Profitability is sensitive to even small increases in expenses. • Heavy reliance on bookings for growth may increase volatility. STRATEGIC RECOMMENDATION ➢ Implement stricter cost governance, particularly around salaries and discretionary spending. ➢ Strengthen renewal programs to stabilize revenue and reduce acquisition pressure. ➢ Improve operational efficiency through automation and productivity tracking. ➢ Shift leadership focus from revenue growth alone to margin and profitability optimization. ➢ Introduce quarter-specific planning, especially to reduce Q1 financial risk. CONCLUSION The business demonstrates steady revenue growth and resilience; however, long-term sustainability will depend on disciplined cost management, enhanced renewal strategies, and a stronger focus on profitability and margin optimization.