Category: Glossary

Capital Expenditures (CAPEX) in software development refer to the money spent on creating or acquiring software assets that will benefit a business over the long term. Common Types of CAPEX in Software Development Software Development Costs: These are the expenses involved in creating new software applications or significantly upgrading existing ones. This includes coding, designing,…

SaaS (Software as a Service) companies generally don’t need as much physical equipment as traditional businesses, but they do have their own types of capital expenditures (CAPEX), mostly related to technology and infrastructure. Common Types of CAPEX in SaaS Companies Software Development Costs: This is often the biggest expense for a SaaS company. It covers…

Capital Expenditures (CAPEX) Capital Expenditures, or CAPEX, is the money that companies spend to buy or upgrade their long-term assets like buildings, factories, technology, and equipment. These are significant purchases expected to help the company grow over the years. Unlike everyday expenses (OPEX), which show up on the income statement, CAPEX appears on the balance…

Bookings in SaaS Bookings in a SaaS (Software as a Service) business are the total value of all customer contracts signed or orders received in a specific period, no matter when the money from those deals will be collected. SaaS Bookings Example Imagine a SaaS company signs a 3-year contract with a customer for $1,000…

Billings Meaning In a SaaS (Software as a Service) business, billings are the total amount of money a company has charged its customers over a certain period. This is regardless of when the company will actually receive the revenue from these charges. Gross billings are the total cash billed to customers before any fees or…