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.
Related metrics terms
ARR (Annual Recurring Revenue)
Annualized value of your subscription revenue at a point in time.
MRR (Monthly Recurring Revenue)
Monthly equivalent of ARR, useful for month-over-month tracking.
Net Revenue Retention (NRR)
Revenue from your existing customer base 12 months later, including expansion and churn.
Gross Revenue Retention (GRR)
NRR without upsell — what you keep before expansion.
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 directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in 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 daily 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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