Date created: Mar 26, 2021 • Last updated: Nov 4, 2021
What is Bookings?
Bookings is a key sales metric that is calculated by taking the total dollar value, including subscription, implementation, and discounts, that a customer has committed to spend for a product or service within a specified period.
How to calculate Bookings
For example, a customer that agrees to a 12-month $12,000 subscription contract on March 15th that starts April 1st would be a $12,000 booking in March and $1,000 of revenue recorded monthly from April 1st to March 31st.
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What is a good Bookings benchmark?
Since Bookings is a leading indicator of revenue, the top SaaS companies strive to be 200% YoY in early pre-seed to seed stages and continue the momentum of being over 100% YoY in later stages (Series A, B, C, etc).
More about Bookings
Bookings is a key sales metric used across different industries, predominantly SaaS, to calculate the total dollar value of a contractual obligation a customer has committed to spending for a product or service within a specified time-frame. It is a leading indicator of expected revenue to be recognized (in accordance with Generally Accepted Accounting Principles) over said time-frame.