Bookings refers to the total value of contracts signed with customers during a specific period. It is a leading indicator of future revenue, representing the commitment a customer makes to pay for a service over time. Unlike recognized revenue, bookings are recorded when a contract is signed, not when the payment is received or the service is delivered.

Bookings are calculated by summing the total contract values signed during a period.

\[\text{Bookings} = \text{Sum of All Signed Contract Values}\]

1. Basic Example: A company signs contracts worth $200,000 in a month. The bookings for that month are:

\[\text{Bookings} = 200,000 \text{ USD}\]

2. Quarterly Example: A company signs 10 contracts in a quarter, each worth $50,000. The bookings for the quarter are:

\begin{align}\text{Bookings} &= 10 \times 50,000 \cr&= 500,000 \text{ USD}\end{align}