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Sales

What is New Bookings?

Total value of new contracts signed in a period, before revenue is recognized.

How to calculate it

Calculate New Bookings as: Sum of newly signed contract value. Pull the inputs from your connected data and track the trend over time in your dashboard.

Examples

Example 1

You sign 10 annual contracts worth $12,000 each in March -> $120,000 in new bookings, even though revenue is recognized monthly.

Example 2

In Q2 the team signs 25 deals totaling $480k in new bookings against a $400k target -> 120% of plan, pointing to strong upcoming revenue.

Why it matters

New bookings capture the total value of contracts signed before any revenue is recognized, making them a leading indicator of future revenue and current sales momentum. Because they move ahead of recognized revenue, they give finance and leadership an early read on whether growth targets are achievable. Watching bookings alongside recognized revenue also exposes timing gaps that can distort a single-month view.

Benchmark context

Benchmark against your sales quota and prior-period bookings rather than an absolute figure; consistent quarter-over-quarter growth and a healthy book-to-bill ratio (near or above 1.0) signal a balanced pipeline.

Common pitfalls

Counting non-binding LOIs; mixing one-time and recurring values.

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