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Estimate Revenue and Profitability for Share Workplace's Paid Tier

Capital OneData Scientist · Technical Screen
MediumData ScientistTechnical ScreenAnalytics & Experimentation

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This interview question evaluates metric design, causal reasoning, experiment setup, diagnostics, SQL/statistical checks, and recommendations in a realistic interview setting. A strong answer for Estimate Revenue and Profitability for Share Workplace's Paid Tier states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.

Scenario

Enterprise collaboration product “Share Workplace” is considering a freemium + subscription business model.

Question

Size the annual revenue opportunity for the paid tier three years after launch. Given separate ARPU assumptions for paid and free cohorts, calculate total and cohort-level contribution margins. If marketing spend increases by 20 %, estimate its impact on subscriber count and profitability; state the assumptions you need.

Hints

Structure the funnel (site visits → sign-ups → active → paid), keep unit economics visible, show step-by-step math clearly.