Forecasting Glossary
Browse 14 forecasting terms defined in plain English, from the cultural dictionary of computing.
14 Forecasting Terms
- Base Case
- The most likely planning scenario used in forecasts and decision models, typically positioned between optimistic and downside cases. Investors and operators...
- Bookings
- The total value of signed customer contracts or committed sales in a period, regardless of when the revenue will be recognized. Bookings matter because they...
- Committed Revenue
- Revenue contractually committed by customers, typically through signed agreements, even if all of it has not yet been recognized in accounting. It is useful...
- Forward Revenue
- Expected future revenue over an upcoming period, often used in planning or valuation multiples rather than historical reporting. Forward revenue matters most...
- Guidance
- Management's communicated expectation for future business performance, such as revenue, margin, or growth, typically given to investors, boards, or public...
- Hockeystick
- A growth curve that stays modest for a while and then rises sharply, resembling a hockey stick. The phrase is common in startup pitch decks and often invites...
- Pipeline Coverage
- The ratio between current pipeline value and future quota or revenue targets, used to judge whether enough opportunity volume exists to support the plan....
- Pipeline Value
- The total potential dollar value of opportunities currently in the sales pipeline, sometimes weighted by stage probability and sometimes not. It is a...
- Pro Forma
- Adjusted or projected financial reporting that shows what numbers would look like under specified assumptions, such as after an acquisition or excluding...
- Revenue Run Rate
- An annualized or periodic projection based on current revenue performance, used as a shorthand estimate of what revenue would look like if the present pace...
- Rolling Forecast
- A forecast that is updated continuously by extending the planning horizon forward as each period closes, rather than being fixed once per year. Rolling...
- Run Rate
- A projected annualized level based on current short-term performance, such as monthly revenue multiplied forward. Run rate is useful for quick framing but can...
- Sales Pipeline
- The collection of active sales opportunities at various stages before closing. A healthy sales pipeline has enough volume, quality, and progression to support...
- Weighted Pipeline
- Sales pipeline value adjusted by estimated probability of closing at each stage rather than simply summed at face value. Weighted pipeline is useful for...
Related Topics
- Sales (5 terms in common)
- Finance (5 terms in common)
- Revenue (4 terms in common)
- Pipeline (4 terms in common)
- Metrics (2 terms in common)
- Valuation (1 terms in common)
- Accounting (1 terms in common)
- Growth (1 terms in common)
- Planning (1 terms in common)
- Investor Decks (1 terms in common)
- Contracts (1 terms in common)
- Scenarios (1 terms in common)
- Investors (1 terms in common)