← Glossary

Bookings

Contracted value signed in a period — often ACV or TCV depending on company definition.

What it is

Bookings are contracted value signed in a period — not the same as ARR recognized into the recurring base, and not the same as cash collected. Companies mix ACV, TCV, and ARR impact under one label unless finance forces a glossary.

How it’s calculated

Sum closed-won contract value for the period under a published ACV/TCV rule. Separately map each booking to ARR impact (immediate, ramped, or future) so sales and finance do not argue from different columns.

Where it breaks

Bookings break when multi-year TCV is treated as one period’s ARR, when pilots are counted as bookings without ARR policy, or when CRM close dates diverge from countersigned contracts.

In the board pack

Show bookings next to net new ARR with an explicit bridge. Pipeline coverage should point at bookings, not at certified ending ARR.

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