Re:The Groupon Bubble is Going Burst Tech
by beoba on Wednesday February 09, 2011 @09:29PM
(#2200421)
It doesn't communicate growth -- there is nothing to compare against. If you were going to do that, you'd simply provide a something like YOY% change in revenue.
A run rate is just inflating/fabricating PAST revenue by speculating on the FUTURE. Refer to my helpful chart:
| / <- SHOW THIS NUMBER TO INVESTORS, PRETEND IT WILL GO ON FOREVER
| /
|/ <- HIDE THIS NUMBER, TOO LOW
+---
A run rate is just inflating/fabricating PAST revenue by speculating on the FUTURE. Refer to my helpful chart: