Commonly Confused Terms: Billings Versus Revenue

#Finance #CommonlyConfusedTerms

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Billings is the total amount a technology company invoices its customers for products or services.

Revenue is the money a technology company actually earns from selling its products or services.

Example: Imagine a technology company sells subscriptions for $100 per month. If the company invoices a customer for a year's subscription, here is what billings and revenue will look like:

• Billings in January: $1,200

• Revenue in January: $100