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Remaining performance obligations

Revenue from signed contracts that the company hasn't recognized yet: work that is already sold but not yet delivered.

Simple example

A customer signs a three-year contract worth $300. On day one, all $300 counts as remaining performance obligations: about $100 is expected to turn into revenue in the next 12 months, and $200 after that.

Signed today: 3-year contract, $300$100$200next 12 monthsafter thatAll $300 counts as remaining performance obligations;it becomes revenue as the work is delivered.
Made-up numbers, for illustration only.

Related terms

BacklogOrders already placed that the company hasn't delivered yet.Deferred revenueMoney received for work not delivered yet.BillingsRevenue plus the change in deferred revenue: roughly what was invoiced.