What is Revenue Backlog?

The value of unfulfilled client orders or contracts that a business has not yet recognized as revenue is measured by the financial indicator known as revenue backlog. It indicates the total amount of future revenue that a business might expect to earn from its current clientele.

Companies that primarily generate revenue from long-term contracts or subscriptions, such as SaaS providers of software as a service, employ revenue backlog. It is also typical among businesses that offer goods or services that are provided over time, such as engineering or construction organizations.