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What is revenue run rate?

A projection of yearly revenue based on revenue from a recent period, such as a month or a quarter.

Updated

Definition

Revenue run rate projects a year of revenue from a recent period's results.

Formula

Run rate = revenue in the period × periods in a year, for example last month's revenue × 12.

Caveats

It assumes the period was typical. Seasonality, one-off deals and rapid growth or decline make it misleading. For subscription businesses, ARR from active subscriptions is more reliable.

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