What are Bookings?
Bookings represent the total value of opportunities which were successfully closed-won during a specific period. Basically, they are the value of additional revenue which can come from New Business (NB) or from Renewal and Expansion opportunities.
Bookings can be measured according to the number of won deals (Count), the amount of Total Contract Value (TCV) or the amount of Annual Recurring Revenue (ARR) of these opportunities.
Why are Bookings important to measure?
Increasing revenues is perhaps the most important goal for any business. SaaS businesses must be especially aware of the amount and the source of their revenues, ARR in particular. Bookings are the simple answer to the question “how much revenue is the company successfully generating?”
It is critical to monitor this metric in order to understand the topline results that the company is achieving and to react accordingly. Using different filters and breakdowns makes it easier to identify the types and amount of revenue generated per region, segment or product, and act to remedy any deficiencies and leverage strong performance.
How are Bookings calculated?
Bookings are as simple to calculate as they are important to measure. The total value of Bookings is produced by summing the amount of all opportunities that were closed-won in the period.
An advanced version of this metric, Bookings Progression, provides a cumulative sum of Bookings value for each fiscal week in the quarter. The result is a sum that gradually increases, with the metric value representing the amount of Bookings attained in the quarter so far up to the end of each fiscal week.
All the SaaS revenue metrics you need
Bookings is only one of the hundreds of SaaS metrics that are available out-of-the-box to users of the Sightfull revenue analysis and optimization platform. They include all the critical metrics required for SaaS companies - from indicators regarding campaigns and leads, through those that track pipeline, conversion and bookings, and all the way to later signals such as retention and expansion.
These highly precise customizable metrics are automatically calculated based on a large repository of SaaS industry standards, best practices and benchmarks. This saves lots of time for RevOps teams since they don’t have to rely on data analysts for support, waste time on error-prone spreadsheets, or manually create and update dozens of reports.
Sightfull users also receive dozens of pre-built dashboards based on these metrics, enabling them to easily investigate revenue trends at a highly granular level, identify their root causes, and act on proactive insights regarding time-sensitive business issues.