Bookings

The value of contracts signed with customers in a period, whether or not the product has been delivered or revenue recognised yet.

Example

A three-year contract signed in December counts as a booking before any of its revenue is earned.

Important

Bookings are committed future revenue, not revenue already earned.

Related terms

  • Annual Recurring Revenue (ARR) — The yearly value of subscription or contracted revenue that is expected to repeat.
  • Deferred revenue — Cash or invoiced amounts received for products or services not yet delivered, recorded as a liability until earned.

Lessons that explain it

  • Not every number called revenue is the same kind of money — Financial diligence starts by separating recurring revenue from one-off fees, bookings from recognised revenue, and invoiced amounts from cash collected. (11 min)

All 578 terms in the Investing glossary