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"annualized run rate" is useful for growing companies and has nothing to do with "recurring". Why would you use "recurring" in the context of Tesla?!
by trhway 7y ago
"annualized run rate" is useful for growing companies and has nothing to do with "recurring". Why would you use "recurring" in the context of Tesla?!
- mediaman 7y agoARR most commonly refers to recurring revenues, especially in the context of premium valuation multiples on revenue. Annual run rate is usually used for small businesses trying to extrapolate out a monthly revenue number. For quarterly publicly traded 10Q numbers, most analysts just say "annualized". But, that's all semantics. Also, 10x sales is out of line for big tech companies. Most are more like 5-7x. True, a little higher than Tesla's 4x, but their economics are very dissimilar. Apple, which is typically trotted out as a "manufacturer", actually offloads all the lower margin manufacturing to other companies, and their margins show it.