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by yen223 27 days ago
"Annualized revenue" is a projection, and is known to be a projection.
3 comments

The problem is, annualized revenue doesn’t work when your income has a 3 standard of deviation month to month. It is standard for other fields/businesses but these tend to have stable month to month revenue.
It’s not deviating up and down. It’s deviating upward. It is necessarily going to wildly overstate the previous 12 months’ revenue while wildly understating the next 12 months’ revenue. There is no way to describe exponential growth in a single number that doesn’t do this. This is why adults with a brain look at the series.
I would venture that's it's the whole reason they use it. because it doesn't work.
If anything, it’s a very conservative estimate. Short of a major turn of events it seems very unlikely Anthropic’s revenue growth is going to slow to zero.
Interesting. I’m going to start describing my “annualized impact” in my performance self-reviews in terms of all the things I project that I’ll do.
Go for it. Be aware of what happens to your stock when expectations you set do not materialize.
Dunno about that, somehow Tesla stock doing pretty well despite setting a lot of expectations that haven't materialized.
Investors don't want results anyway, they want a dream. Until the IPO which is the final boss stage where you are selling forward looking profits
Yes but my mother-in-law doesn't understand it, so it's a lie.