Deferred Revenue

Definitions

1. Cash received from customers for services not yet fully delivered, recorded as a liability until the revenue is earned. Annual SaaS contracts often create significant deferred revenue balances.

   In plain English: Money collected in advance for work or service that has not been fully delivered yet.

   Example: "The annual prepayments boosted cash, but the balance sheet showed deferred revenue until service was delivered."

Related Terms

• ARR
• LTV / CAC
• Cost of Goods Sold
• Cost of Revenue
• Dollar Retention
• Gross Retention
• Logo Churn
• Accrued Revenue