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.

Go deeper

16 More Startup Metrics a16z · article Billings is defined here among the core startup metrics investors actually track, with how to read it honestly. Open a16z.com →

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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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