Bookings vs Revenue vs Cash: The Three Lenses Every SaaS Founder Needs
Written by Aparna Devalla, CPA
Curated by Rubric Financial
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Three Numbers, One Customer
- Bookings: the dollar value of contracts signed in a period. Forward-looking; captures momentum.
- Revenue: the dollar value of services delivered in a period. Reported under GAAP (ASC 606). Backward-looking.
- Cash: the dollar value of money received in a period. Determines runway. Aligns with billing cycle, not contract or delivery.
- Example: $36K signed today for a 3-year SaaS contract, paid annually upfront = $36K bookings (today) + ~$1K monthly revenue (over 36 months) + $12K cash (today).
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