pro forma

Definition

Financial projections showing what a company's metrics would look like under hypothetical conditions or future scenarios. Latin for 'as a matter of form,' startup-ese for 'this is the fantasy we're selling investors.'

Example Usage

The pro forma showed them reaching $100M ARR by year three, which everyone knew required perfect execution and a miracle.

Origin

Latin term adopted into accounting in the 19th century, formalized in SEC regulations in the 20th century

Fun Fact

During the dot-com bubble, companies abused pro forma accounting to exclude 'one-time' charges and make losses look like profits—leading to SEC crackdowns and stricter disclosure rules.

Source: SEC regulations and financial accounting standards

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