‍What Is Revenue Backlog?

Revenue backlog is the total value of revenue you’ve already contracted—but haven’t recognized yet—based on your revenue recognition schedule.

It can include:

• Subscription revenue not yet recognized
• Non-recurring service revenue (like onboarding or training)
• Future revenue from active or pending subscriptions

To qualify, the revenue must be tied to a signed agreement with high certainty of delivery.

How to Calculate Revenue Backlog

There’s no one-size-fits-all formula, but here’s the general approach:

Revenue Backlog = Sum of All Contracted, Unrecognized Revenue

Include:

• Recurring revenue from signed multi-month/year deals
• Setup fees or professional services in the contract
• Revenue delayed by acceptance criteria or project milestones

Exclude:

• Unsigned proposals
• Pure pipeline or sales forecasts
• Incomplete deals or those with low fulfillment confidence

Revenue Backlog vs Deferred Revenue

These terms often get confused, but they are not the same:

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Put simply: backlog is about signed deals, deferred revenue is about paid invoices.

Why Revenue Backlog Matters

✅ Stronger Revenue Forecasting
Use backlog to project when revenue will be recognized and understand future MRR/ARR ramp.

✅ Board and Investor Visibility
Revenue backlog is often shared in board decks to show the value still “in the pipe” from signed contracts.

✅ Revenue Operations Clarity
Gives Finance and RevOps teams a better grip on future revenue inflows not yet on the books.

✅ Performance Management
Track the velocity of backlog conversion to recognized revenue by sales cohort, product line, or deal type.

How to Use Revenue Backlog Effectively

• Segment by plan type or region to spot deal quality differences
• Track backlog aging to surface delays in implementation or service delivery
• Use it with your recognition schedule to predict GAAP revenue patterns

When used correctly, revenue backlog offers early signals on whether your revenue engine is healthy—or if it’s stalling.

Track Revenue Backlog Seamlessly with TrueRev

TrueRev makes backlog management easy:

• See backlog by contract, customer, or subscription tier
• Forecast recognition schedules with accuracy
• Align backlog tracking with ASC 606-compliant recognition logic

You’ll never have to guess which revenue is in limbo—and which is about to hit your income statement.

Final Thoughts

Revenue backlog gives SaaS leaders a powerful view of future revenue locked in. It’s not GAAP, but it’s a critical strategic metric for CFOs, RevOps, and investors alike.