Billings
The amount you have actually invoiced customers in a period, whether or not the revenue has been recognized yet. Sits between bookings and recognized revenue.
Why it matters
Billings are a useful leading indicator of revenue and cash, especially for annual contracts paid upfront. Investors watch billings growth to see momentum that recognized revenue lags behind.
For example
A SaaS company signs a customer to an annual plan and invoices the full 1.2 lakh upfront; that is billings, even though the revenue is recognized 10,000 a month.
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Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
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