Definition
Billings are amounts invoiced in a period. Billings can differ from cash collected and recognized revenue due to timing.
Example
You invoice $120k annual contracts in Q1; billings are $120k even if revenue is recognized monthly.
How to use it
- Billings are useful for sales execution and collections tracking.
- Compare billings to deferred revenue to see cash timing shifts.
- Keep billings definitions consistent (include or exclude one-time fees).
Common mistakes
- Using billings as a proxy for revenue in SaaS reporting.
- Mixing billings and bookings in the same metric without clarity.
Why this matters
This term matters because cash timing and risk are usually the difference between a plan that works on paper and a plan that survives. Use consistent definitions so decisions are comparable over time.
Practical checklist
- Write a 1-line definition for "Billings" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Deferred Revenue Rollforward Calculator) to sanity-check assumptions.
- Read the related guide (e.g., Deferred revenue: bridge billings to recognized revenue (with formulas)) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Deferred Revenue Rollforward Calculator: Bridge billings to recognized revenue by rolling deferred revenue forward for a period.
- Bookings vs ARR Calculator: Compare bookings vs ARR (and cash) for a contract with term length and one-time fees.
Guides
- Deferred revenue: bridge billings to recognized revenue (with formulas): A practical guide to deferred revenue: what it is, why billings and recognized revenue differ, and how to use a rollforward to stay consistent.
- Bookings vs ARR: definitions, formulas, and examples: Bookings vs ARR explained (ARR vs bookings): what each metric measures, the formulas, and how to avoid common mistakes with annual prepay and one-time fees.
- Bookings vs ARR: what ARR means (and what it doesn't): Bookings vs ARR explained: what ARR is (and isn't), plus how it differs from bookings and cash receipts.