Bookings
The total value of contracts signed with customers, representing future revenue commitments.
Definition
Bookings represent the total contract value committed by customers when they sign an agreement, regardless of when the revenue will be recognized. This forward-looking metric helps businesses forecast future performance and understand sales momentum.
Bookings vs Revenue vs Billings
Bookings
Total contract value when signed
Billings
Amount invoiced to customers
Revenue
Amount earned and recognized
Real-World Example
SaaS Company Contract:
- • Customer signs 2-year contract: $50/month
- • Bookings: $1,200 (total contract value)
- • Billings: $600 (if paid annually)
- • Revenue: $50/month (recognized monthly)
The booking happens when signed, but revenue is recognized over 24 months.
Types of Bookings
New Bookings
Contracts from new customers or new products for existing customers
Renewal Bookings
Contract renewals from existing customers