17 questions reported in Qatalyst interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Recurring revenue quality, Rule of 40, retention and growth-adjusted multiples. 11 questions
Technology coverage analysts regularly reconcile operating KPIs to reported growth before discussing a software issuer with investors.
A SaaS company begins the year with $100m of ARR. Existing customers expand by $12m, contraction is $4m, churn is $6m, and new customers add $18m. Calculate ending ARR, net revenue retention, gross…
Software business models are the foundation of tech coverage. This tests understanding of SaaS vs perpetual.
Explain the differences between SaaS and perpetual licensing business models. How do revenue recognition, economics, and valuation differ?
A first-round technology coverage question testing whether you can describe a software company's customer and competitive position precisely.
A company sells workflow software only to dental practices, while another sells collaboration software to nearly any office. Explain which is vertical software and which is horizontal software, then…
Network effects are the strongest moat in technology. This tests understanding of competitive dynamics.
Explain how network effects work in technology businesses, and what determines whether they create sustainable competitive advantages?
Open source has disrupted software business models. This tests understanding of monetization.
What are the common business models for open source software companies, and how do they differ from traditional proprietary software?
Embedded finance is transforming fintech. This tests understanding of the integration model.
What is embedded finance, and how do embedded finance companies make money? How does this differ from traditional financial services?
APIs have become a core business model. This tests understanding of platform economics.
What are the business models for API-first companies, and how do they differ from traditional software models?
The core technical in any technology coverage interview.
How do you value a software company, and why doesn't the standard EV/EBITDA framework work well for one that's growing 40% a year?
AI is transforming technology. This tests understanding of the new business models.
What are the business models for AI companies, and how do they differ from traditional software economics?
The purchase accounting quirk that distorts every software acquisition's first year.
A software company with $200m of deferred revenue is acquired. Why does the acquirer's reported revenue come in below expectations in year one?
A senior coverage interviewer uses this scenario to test whether you can turn customer concentration and AI economics into a defensible valuation recommendation.
An AI-infrastructure vendor has $80m of ARR, 60% growth and an 85% gross margin. Its largest customer supplies 45% of ARR under a one-year contract, and that customer is building a competing internal…
Merger models, accretion/dilution, purchase accounting and deal judgement. 4 questions
Sector-specific multiple knowledge is what distinguishes prepared candidates.
Which multiple would you use to value: (a) a software company, (b) an airline, (c) a bank, (d) a REIT, (e) an early-stage biotech? Justify each.
Increasingly common given how many deals involve software and subscription businesses.
A SaaS company collects $120 cash upfront for a 12-month contract on January 1st. Walk me through the accounting at collection and at the end of month one. Why do investors watch deferred revenue?
A live debate in tech coverage and growth equity. Interviewers want a view, not a recital.
Stock-based compensation is added back as a non-cash expense in most adjusted EBITDA calculations. Do you think that's the right treatment? Defend your position.
Asked in technology, media and healthcare coverage groups where contract structures are complex.
Outline the five-step revenue recognition model under ASC 606. Then apply it: a software company sells a three-year licence bundled with implementation services and ongoing support for $300k paid…
IPO process and pricing, dilution, lock-ups, greenshoe and market windows. 2 questions
Asked in ECM and technology coverage; tests whether you can evaluate a structure critically.
How does a SPAC merger differ from a traditional IPO as a route to the public markets? Who bears the cost?
Tests whether you understand whose interests the pricing decision serves.
IPOs typically price below where they trade on day one, leaving money on the table for the issuer. Why does this persist, and whose interests does it serve?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
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