Fig. 01 · Glossary
Deferred Revenue
Also known as Unearned Revenue
Definition
Deferred revenue is a liability created when a company receives cash or bills a customer before delivering the product or service required to recognize revenue. In SaaS and services diligence, deferred revenue affects cash, working capital, revenue quality, and purchase price mechanics.
Deferred revenue is where cash and revenue stop being the same conversation. A company can collect cash ahead of performance and still owe future delivery.
Buyers care because deferred revenue affects working capital, customer obligations, and the quality of the recurring revenue story.
Human Renaissance glossary · operator-grade definitions · Research methodology
