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“annualized revenue run rate” is a bogus accounting term. It’s like taking a paycheck and multiplying it by 365. Notice the complete lack of any mention of prof
by Eggpants 5mo ago
“annualized revenue run rate” is a bogus accounting term. It’s like taking a paycheck and multiplying it by 365. Notice the complete lack of any mention of profits.
- ToValueFunfetti 5mo agoTaking my paycheck and multiplying would be an excellent measure of my yearly salary. I don't understand how that analogy is meant to imply that the approach is nonsensical.
- Snoozus 5mo agobecause your paycheck comes only one day per month, so that estimate would bee too high by a factor of 30
- ToValueFunfetti 5mo agoBut then the analogy doesn't work at all? ARR isn't calculated by multiplying revenue to 30 years and then saying that that's 1 year's revenue; what criticism is being made here?
- nsonha 5mo agothey pick some month with the higest revenue. Unlike your income, a business makes different amounts each month based on some trends and many other factors, and they can varry wildly.
- sealthedeal 5mo agoIts your most recent months revenue * 12, its not that deep bro LMAO