Billings vs Bookings

This problem tests your understanding of how SaaS companies recognize commercial activity before it becomes revenue. Candidates need to know that billings track what has been invoiced to the customer, while bookings capture the value of signed contracts and committed future work that may not yet have been invoiced. That distinction matters in interviews because bankers often use SaaS metrics to assess growth, cash collection timing, and the quality of a company’s revenue base. Interviewers ask this to see whether you can separate contractual demand from invoiced amounts and speak clearly about how SaaS performance is measured.