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Bookings vs Revenue & Inflated Future Value

Asked on June 30, 2015

"Management may use the bookings metric (non-gaap) metric as a way to inflate future value despite known variances between bookings and recognized revenue. Is there any guidance that can be referenced or is the AICPA looking at bookings to provide some general guidance or guidelines?"

This question was asked at a recent webinar, now available on-demand:

"Why Companies Need a Bookings Policy, and How to Create One"

Please add your thoughts about it below. Thanks!

Answers

Mike Murphy Chief Business Officer • June 29, 2015

I wish. Non-GAAP financial measurements are not new. You may recall the term ‘eye balls” as a metric web sites used to measure user engagement. However given that these are in fact “financial metrics” I do believe that there should be some oversight over the metrics and their usage.

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