Revenue Prediction

Services: Gradient Boosted Trees
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CHALLENGE

A large, publicly traded technology company sought to replace ineffective, legacy revenue forecasting models.

 

SOLUTION 

We developed two Gradient Boosted Tree models that predict quarterly revenue (up to 8 quarters out). One model could predict granular revenue by:

  • Region and Territory
  • Business Unit 
  • Product Line
  • Market and Segment

A second model was focused on explainability and predicts the error rate per quarter and category.

OUTCOME

We achieved over 18% greater accuracy predicting revenue while also providing granular predictions, up to two years into the future.