Total Bookings Definition for SaaS
Total Bookings is the value of all transactions in a specified period of time, including all subscription and non-subscription (one-time) transactions. Typically, “value” is the total revenue (recognizable or not) associated with each transaction, as opposed to amount invoiced in the period. However, since there is no standard definition, some organizations define to normalize the value, for instance, only including the value of the first year of a multi-year agreement.
For monthly subscription businesses, Total Bookings for any period may very well equate to total revenue for that period because in most cases, invoices are produced monthly and invoices for monthly services are typically recognized when they are created.
For term subscription businesses with subscription and services revenue recognition schedules, Total Bookings would not typically equate to total revenue. They would only be equate when all revenue associated with the transactions happens to be completely recognized in the reporting period.
Typically included are:
Total Subscription Fees, including for new contracts as well as for renewal terms
Variable Fees (e.g. – overage, consumption, transactional fees)
One Time Fees such as Perpetual Licenses
Training and Professional Services Fees
Since Total Bookings is a non-GAAP term used to measure and compare general sales trends, there is no universal standard. Therefore, they may or may not include certain financial transactions such as credits or write offs.