Bookings

What is Bookings?

Bookings represent the total value of all signed contracts between a company and its customers during a specific period. Unlike revenue, which is recognized as service is delivered, bookings reflect a forward-looking commitment from the customer to pay for services.

Why It Matters

• It is a primary indicator of sales team performance and future revenue growth.

• Tracking bookings helps management understand the demand for the product and the effectiveness of the sales pipeline.

• It provides the necessary data for cash flow planning and resource allocation.