Total Bookings Vs Revenue

As mentioned at the outset of this article reporting on the three metrics tends to incite heartburn for.

Total bookings vs revenue. So you sold something for 50. Revenue on the other hand is when the geniuses in accounting can account for the revenue as being recognized. If bookings are a lot higher than revenues that can be a positive sign.

You sell a membership to your site for 120 a year. Revenue happens when the service is actually provided. The 120 is a sale a booking.

Bookings represents the total amount of revenue for a signed contract. Of course it will all depends on your specific scenario product service and pricing schema. The ceo needs this information at two levels.

I want to buy what you re selling where do i sign a booking is when the customer makes a commitment via a contract to buy your services or product. Quite simply this represents how much in both value and deal count was booked by the sales rep. But if the use of that thing requires you the seller to ongoing support you might have to spread that booking out over time.

First they need to know how well the company is doing on a total sales basis. Bookings are when the customer says. In saas if you bill your customers upfront billings will be just like bookings but if you bill monthly billings will be just like revenue.

A contract isn t required to have a booking as someone who signs up for a month of your saas offering is committing to that month of service without signing anything. If bookings are lower than revenues that can be a negative sign. That s a 50 sale.