Run rate

Intermediate 💼 Corporate / Business

Definition

A projection of annual revenue based on current performance, assuming nothing changes ever—which it always does. Financial crystal ball gazing disguised as analysis.

Example Usage

Based on our Q1 run rate, we'll hit $50M this year, assuming the market doesn't collapse and customers keep paying.

Origin

Financial analysis terminology from the mid-20th century

Fun Fact

Run rate projections are most confident right before they become completely wrong.

Source: Financial planning terminology

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