Bookings

Bookings are the sum of all committed dollars in your new contracts.

EXAMPLE:

In January, you have 4 contracts:

  • Contract 1 is a month-to-month contract (cancelable at the end of each month) that pays $1,000 per month. Your booking is $1,000.
  • Contract 2 is a $12,000 annual contract where the customer pays the total contract value upfront. Your booking is $12,000.
  • Contract 3 is a $12,000 annual contract where the customer pays quarterly. Your booking is $12,000 since your customer has committed for an annual term.
  • Contract 4 is a 5-year committed contract that annually pays $12,000. Your booking is $60,000.

In this case, your total January bookings are $85,000 ($1,000 for contract 1 + $12,000 for contract 2 + $12,000 for contract 3 + $60,000 for contract 4).

Common variations: In many instances, bookings can be restricted to the first year. If that is the case, the above example would have bookings of $37,000 ($1,000 for contract 1+ $12,000 for contract 2 + $12,000 for contract 3 + $12,000 for contract 4).