What is Bookings?
Bookings is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
Bookings are the total value of contracts customers have committed to, signed in a given period, regardless of when the revenue is recognized or cash is collected. A one-year 60,000 dollar contract is a 60,000 dollar booking on signing. Bookings measure sales output, not accounting revenue.
Key takeaways
- Total contract value signed in a period.
- Recorded at signature, not as service is delivered.
- Different from revenue, which is recognized over the contract term.
- A primary measure of sales team output and quota attainment.
Why it matters
Bookings show what the sales team actually sold this period, before accounting spreads it out. Leaders use bookings to measure sales performance and to plan the revenue that will follow.
How Ardovo handles it
Ardovo records bookings the moment a deal closes and ties them to the deal's line items, so sales output and downstream billing stay connected. Rook can break bookings down by product, segment, and rep instantly.
Frequently asked questions
What is the difference between bookings and revenue?
Bookings are the full value committed when a contract is signed. Revenue is recognized gradually as the product or service is delivered. A 12-month deal books fully on day one but recognizes revenue monthly.
Are bookings the same as billings?
No. Bookings are what the customer committed to. Billings are what you have invoiced so far. A customer can book a year but be billed monthly or quarterly.