Comment by sisve

18 hours ago

As far as I understand run rate revenue is just a fancy way of saying that "the last month we had sales, and if that continues for a year we will have a AAR of 30B. meaning it's not 30B yet, but the sales numbers indicates that we get there by continue selling at the current speed. But to have revenue of $100 and get $30B in ARR I guess the period looked at needs to be seconds....

(Run Rate = Revenue in Period / # of Days in Period x 365)

Not even that. It's not based on actual sales in, for example, the past month. It's based on an expected continuous growth based on the growth of the past month (or whatever period you pick).

It's a forecast.

  • I cant say what all companies does. But my google seaches and and chatgpt Do not agree with you on that. They stick to actual sales.