What are bookings?
Bookings represent the total value of contracts signed with customers during a period — the commitments customers have made to pay for products or services — regardless of when the revenue is earned or cash is collected. Bookings are a leading indicator of future revenue.
In SaaS and enterprise sales, bookings, billings and revenue diverge because of multi-year contracts and ratable revenue recognition. Investors track bookings closely to assess sales pipeline health. Bookings are not recognised as revenue under GAAP/IFRS until earned.