4 ms·
dude, in just two months.. still amazing.
by sinzone 13y ago
dude, in just two months.. still amazing.
- jfarmer 13y agoIt's mostly irrelevant, honestly, except as good marketing. If I buy $1000 worth of candy and sell it for $1000 every month, do I have a "$12,000 run rate?" I'm not poo-pooing FOBO, only saying that "$X run rate" is meaningless without understanding the underlying economics. It's a vanity metric. So, it's awesome they got ink based on that story, but let's not kid ourselves that this says something about the business in and of itself. :)
- baddox 13y ago> If I buy $1000 worth of candy and sell it for $1000 every month, do I have a "$12,000 run rate?" Yes. As far as I know, "run rate" refers to taking data from a shorter time period and extrapolating it to a year, and the obvious implication is that revenue is the data point being extrapolated.
- jfarmer 13y agoYou're either being deliberately pedantic or missing my point, which was to illustrate how silly "run rate" can be as financial metric unless it's backed up by fundamentals. The $1000/month candy business is a bad business and in fact the more revenue it "makes" the more money the business actually loses.
- baddox 13y agoNo one is disputing that this one figure doesn't give a complete representation of the health or success of a company. That doesn't mean that run rate can't be a useful metric. You just asked if you were correct about the definition of run rate, and I just responded that you were.