Glossary
Run-rate
A projection of yearly revenue made by extending a recent short period, such as a month or quarter, across a full year.
A revenue run-rate takes revenue from a recent period and scales it up to a year, for example a month multiplied by twelve or a quarter by four. AI companies often announce run-rates to show how fast they are growing.
Run-rates can be useful for fast-growing companies whose past-year revenue is already out of date. They can also flatter a company by annualizing an unusually strong month, one-off deals, or usage that may not last.
A run-rate is a projection, not revenue earned. Look for the period it is based on, who reported it, and whether it is recurring.
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