What is bookings vs. revenue ?
Bookings represent the total value of contracts signed, while revenue is what has actually been earned and recognized over time.
Bookings measure the total value of deals closed in a period, regardless of when the revenue will be delivered. Revenue is only recognized as the service is delivered, in line with ASC 606 and IFRS 15 standards.
Example: A company signs a $120,000 annual contract in January. The booking is $120,000, but revenue is recognized at $10,000 per month throughout the year.
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