SaaS bookings represent the amount of money that the business can expect to come in. It reflects the demand for the company's product/service and the overall market response. Although this is an annual number, bookings can be measured for more or less than a year. While making the bookings, a company can collect the payments at the start of the contract. Thus, it is recorded as a liability or deferred revenue. This is because the company is obligated to provide the product/service. Alternatively, the revenue can be recognized through the period of the contract.
To calculate monthly bookings, a company must take into account the total value of all the contracts booked during a specific period.For instance - If Vareto makes total bookings of $2,400 under its standard service category and $160 worth of bookings under its lite service category the total SaaS bookings is $2560.