Bookings

Bookings are the total value of contracts your customers have signed, counted on the day they sign. When you invoice or deliver the service doesn't matter. Bookings are a sales metric that points to future revenue. They are the first of three stages, followed by billings and recognized revenue.

How bookings are counted

A booking is the contract value of a signed agreement. A multi-year deal counts in full at signing, even though you bill and earn it over time.

A customer signs a two-year contract at $2,000/month. Its total contract value is 24 × $2,000 = $48,000. The full $48,000 is booked at signing, before any invoice or revenue.

Bookings vs billings vs revenue

• Bookings. The customer has signed.
• [Billings](/glossary/billings). You have invoiced them.
• [Recognized revenue](/glossary/recognized-revenue). You have delivered the service and earned the money under GAAP.

Bookings and billings are non-GAAP operating metrics. Only recognized revenue appears on the income statement.

Why bookings matter

Bookings show sales momentum before revenue does, because they count at signing. The recurring part of a booking feeds committed MRR, and its yearly value is the ACV. A signed contract can still cancel or go unpaid, so teams track billings and revenue too.