Definition
Backlog revenue is the portion of backlog (remaining contract value) that you expect to recognize as revenue in a given period or over a horizon (e.g., next 12 months). It is derived from backlog and a schedule (or assumption) of when jobs will be performed and revenue recognized. It feeds revenue and cash flow forecasts.
Why It Matters
Backlog tells you how much work you have; backlog revenue tells you when you expect to earn it. That supports revenue forecasting, staffing, and cash flow. Lenders and sureties may want to see backlog by time period (e.g., next 12 months) to assess revenue visibility.
Field Example
Total backlog $2M across 8 jobs. Based on project schedules, $800K is expected to be performed and recognized in the next 12 months; the rest in year 2. Backlog revenue (next 12 months) = $800K. That $800K is used in revenue and cash flow forecasts and in management reporting.
Calculation / Formula (if applicable)
Backlog revenue (period or horizon) = Sum over jobs of (Revenue expected to be recognized in that period). Requires either a schedule (start/end, % per period) or an assumption (e.g., even over remaining duration). Often done in a spreadsheet or project schedule export.
Software Application
If job start/end or schedule is stored, estimate revenue per period (e.g., by POC curve or even spread). Sum to get backlog revenue by period. Report backlog by time bucket (0–3 months, 3–12 months, etc.). Feed into revenue and cash flow forecast. Optional: integrate with scheduling tool.
Tooltip Version
Backlog revenue is the part of your backlog you expect to turn into revenue in a given period, so you can forecast revenue and cash flow.
Related Objects
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