Bookings

MetricSales

The total value of new contracts signed in a period, including new business, renewals, and expansions. Distinct from revenue, which is recognized over the contract term.

Bookings are the total contract value (TCV) of all new, renewal, and expansion deals a company signs in a given period. A booking is recorded when a customer commits to a contract and represents the promise of future revenue.

Bookings vs. Revenue vs. ARR

  • Bookings: The full contract value at signature.
  • Example: A 3-year, $300K deal = $300K in bookings.
  • Revenue: The portion of that contract recognized over time according to GAAP, as the service is delivered.
  • ARR (Annual Recurring Revenue): The annualized recurring value of active contracts.
  • Example: The same 3-year, $300K deal = $100K added to ARR.

Types of Bookings

  • New Business Bookings: Contracts from brand-new customers.
  • Expansion Bookings: Additional contract value from existing customers (upsells, cross-sells, seat increases, etc.).
  • Renewal Bookings: Contract value from existing customers renewing their subscriptions.

Why Bookings Matter

Bookings are the most immediate indicator of sales productivity and momentum. While:

  • ARR shows the current recurring revenue base, and
  • Revenue shows recognized financial performance,

Bookings show how much new value the sales team is closing right now and signal future ARR and revenue growth.

RevOps Application

Revenue Operations (RevOps) tracks bookings by:

  • Segment (e.g., SMB, mid-market, enterprise)
  • Sales rep

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