Recurring Bookings

This is a term for the ACV of all recurring product and services contracts. Subscription Bookings are always recurring although contracts with less than one-year terms should be disclosed. An example of this is a pilot subscription. Recurring services bookings include Maintenance and Support revenue if the company is required to provide such services throughout the contract term. The adoption of ASC 606 creates a unique reporting situation for one-time professional services related to onboarding a new customer, such as implementation and integration, software and business process customization, and training and enablement. Under ASC 606, these services are capitalized and amortized over the expected customer lifetime and this turns Professional Services bookings into recurring revenue. However, this is a GAAP requirement and is not relevant to SaaS reporting. CFOs should still report Professional Services Bookings as Non-Recurring Bookings.

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