Total Subscription Bookings

What is Total Subscription Bookings?

Total Subscription Bookings is a SaaS metric to measure the total value of new subscription contracts booked within a specific period. It indicates the business's growth and sales performance, as the metric represents customers’ commitment to pay for the company's products or services over time.

Total Subscription Bookings include the value of all new contracts signed during a period - a month, quarter, or year. It typically includes recurring revenue from subscriptions and any associated setup or implementation fees. However, total subscription bookings do not account for contract renewals, expansions, or upsells.

Why is Total Subscription Booking Important in SaaS?

Total Subscription Bookings is a critical metric for SaaS businesses for the following reasons.

·        It helps them understand the effectiveness of their sales and marketing efforts

·        It enables the identification of trends in customer acquisition, and

·        It also helps SaaS companies evaluate the potential for future revenue growth.

Apart from the above three, Total Subscription Booking can also be used as a benchmark for setting sales targets and forecasting future revenues. Further, the metric can compare a SaaS company's performance against industry benchmarks or competitors.

By tracking Total Subscription Bookings with other key performance indicators, such as Customer Acquisition Cost (CAC), Monthly Recurring Revenue (MRR), and Total Contract Value (TCV), SaaS companies can make informed decisions.

How to Calculate Total Subscription Bookings?

Total Subscription Bookings is the sum total of the values of new subscription contracts in a given period.  

Total Subscription Bookings = Σ (Value of New Subscription Contracts)

To calculate Total Subscription Bookings, consider all new contracts within a specific period, and calculate the value of each contract including subscription fees, one-time setup, or implementation fees.

Note that, Total Subscription Bookings considers only new contracts. So, exclude contract renewals, upsells, or expansions.