Hey great question. I’ve often thought the same thing about bookings and tcv.
For all intensive purposes they are the same. If you really wanted to split hairs, the booking is only for that period / calendar year. It only counts against the sales reps quota retirement for that year. In other words, the booking is only counted or associated with the period it occurred.
But TCV continues for the length of the contract. So the total contract value in year 2 is carried as the same as in year 1.
Not all revenue is created equal
Hey great question. I’ve often thought the same thing about bookings and tcv.
For all intensive purposes they are the same. If you really wanted to split hairs, the booking is only for that period / calendar year. It only counts against the sales reps quota retirement for that year. In other words, the booking is only counted or associated with the period it occurred.
But TCV continues for the length of the contract. So the total contract value in year 2 is carried as the same as in year 1.
I've always just relied on revenue as reported in quarterly filings...am I doing something wrong? (!)