Metrics
Bookings vs Revenue vs Cash
Quick definition
Bookings = contracts signed (forward-looking). Revenue = service delivered (GAAP recognized). Cash = money received (bank balance).
Three different lenses on the same customer relationship. A 3-year $36K contract signed today = $36K bookings, ~$1K monthly revenue over 36 months, and (if paid annually upfront) $12K cash today. Investors look at all three: bookings for momentum, revenue for accounting integrity, cash for runway. Misalignment between them (e.g., bookings way up but revenue flat) signals contracts with delayed delivery or seasonal billing terms.
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Frequently asked questions
- What is Bookings vs Revenue vs Cash?
- Three different lenses on the same customer relationship. A 3-year $36K contract signed today = $36K bookings, ~$1K monthly revenue over 36 months, and (if paid annually upfront) $12K cash today. Investors look at all three: bookings for momentum, revenue for accounting integrity, cash for runway. Misalignment between them (e.g., bookings way up but revenue flat) signals contracts with delayed delivery or seasonal billing terms.
- Why is Bookings vs Revenue vs Cash important for startups?
- Bookings vs Revenue vs Cash is a metrics concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does Bookings vs Revenue vs Cash belong to?
- Bookings vs Revenue vs Cash is a Metrics term in the StartupCFO finance glossary, alongside other metrics concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about Bookings vs Revenue vs Cash?
- Beyond this definition, see the related metrics terms below, or explore StartupCFO's insights and tools that put Bookings vs Revenue vs Cash in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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