Bookings
The total value of contracts customers have committed to, signed but not necessarily paid or delivered yet. A forward-looking measure of sales.
Why it matters
Bookings show demand and sales momentum before it shows up as revenue. Confusing bookings with revenue is a common way founders overstate a business, so keep the two clearly separate.
For example
The sales team closes 40 lakh of new annual contracts in Q1; that is bookings, money committed but not yet invoiced or earned.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
eChai Partner Brands
