Bookings
Broadly speaking, bookings refers to the value of accepted term contracts, contracted work or services, and changes to such contracts as of either the order date or the effective date of the transaction. Bookings can also include revenue transactions outside of contracts, such as incidental purchases. Bookings typically include all items with a revenue implication, such as new contracts, renewals, upgrades, downgrades, add-ons, early terminations and refunds.
Bookings is typically also segmented into classifications, such as New Bookings and Renewal Bookings, and performance in these bookings classes is frequently tied to various compensation plans.
Like all other SaaS metrics, there is no standard definition for bookings. You will have to define bookings. While at first glance, it appears like a simple metric to calculate, interesting conversations arise when you begin defining rules for classes of bookings metrics needed for compensation plans. For instance, how do you record bookings for a three year agreement? How do you record bookings for an upgrade that involves a change in the term end date?
How do you define and use Bookings? Join the discussion at the SaaS Optics community.