Bookings

Bookings are the total value of contracts your customers have committed to, counted when the deal is signed — regardless of when you invoice them or deliver the service. It's a forward-looking sales metric that signals future revenue and momentum, and it's the first of the three cash-and-revenue milestones alongside billings and recognized revenue.

How bookings are counted

A booking equals the contracted value of a signed agreement, recorded at signature. For a multi-year deal, the full committed amount is a booking even though it will be billed and earned over time.

For example, a customer signs a two-year contract at $2,000/month. The total contract value is 24 × $2,000 = $48,000, and that full $48,000 is booked at signing — even though no invoice has been sent and no revenue has been earned yet.

Bookings vs billings vs revenue

These three describe the same deal at different stages:

• Bookings — the customer has committed (contract signed).
• [Billings](/glossary/billings) — you've invoiced them (cash is coming).
• [Recognized revenue](/glossary/recognized-revenue) — you've delivered the service (it's earned, GAAP-recognized).

Bookings and billings are non-GAAP operating metrics; only recognized revenue appears on the P&L.

Why bookings matter

Bookings show sales momentum earlier than revenue does, because they're captured at signing rather than spread over the delivery period. They also relate to recurring metrics: the recurring portion of a booking flows into committed MRR and, annualized, into ACV. But bookings alone don't guarantee cash — a signed contract can still churn or fail to pay, which is why teams watch billings and revenue behind them.