Glossary · Revenue metrics
Bookings vs revenue
Bookings are commitments (signed contracts, orders) — revenue is recognized when you actually earn it under accounting rules. They can diverge with annual prepay, multi-year deals, or implementation delays.
Related: Ingresos recurrentes anuales (ARR) · Monthly recurring revenue (MRR) · Due diligence
A bit more nuance▾
- Teams sometimes hype bookings; investors ask how they convert to cash and recognized revenue.
- ARR and MRR should connect cleanly to how you recognize revenue — inconsistency confuses everyone.
Go deeper▾
Discussion questions▾
- What is your typical lag from booking to cash in the bank?
- Where might your “ARR” include non-recurring dollars?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.