Bookings vs. Billings vs. Revenue vs. ARR
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
Four Numbers, Four Different Questions
- Bookings, billings, revenue, and ARR describe the same customer four different ways, and they rarely match in any given month.
- Bookings answer what you sold, billings what you invoiced, revenue what you earned, and ARR your recurring run-rate.
- Confusing them is one of the fastest ways to lose credibility in a board meeting or in diligence.
- Each is the right answer for a different audience, so the skill is knowing which one to show and when.
Go deeper on this topic: Bookings vs. Billings vs. Revenue vs. ARR: The Four Numbers Founders Confuse→
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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