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catastrophic  events,  and  resulting  interruptions  in  the  availability  of  our  models,  platform,  and 
applications; and

general economic conditions in either U.S. or non-U.S. markets, including geopolitical uncertainty and 
instability and their effects on software spending.

Any one or more of the factors above, or other factors in this “Risk Factors” section, may result in significant 
fluctuations  in  our  results  of  operations  or  other  key  metrics,  which  may  cause  such  results  to  fall  below  our 
financial guidance or other projections or the expectations of analysts or investors, and cause the market price 
of our Class A common stock to decline.

Certain of our operating metrics are subject to assumptions and limitations. As a result, these 
metrics may not provide an accurate indication of our actual performance or future results.

Certain  of  our  operating  metrics,  such  as  Run-Rate  Revenue,  Net  Revenue  Retention,  customer  counts,  and 
Claude’s  success  rate,  are  based  on  numerous  assumptions  and  limitations,  are  calculated  using  data  from 
internal  systems  and  tools,  have  not  been  independently  verified  by  third  parties,  are  subject  to  inherent 
limitations in measurement, and may not accurately reflect actual results or provide an accurate indication of 
future or expected results. 

Run-Rate Revenue is not a substitute for revenue prepared in accordance with GAAP or a forecast of revenue. 
Because  Run-Rate  Revenue  annualizes  our  consumption-based  fees  for  a  trailing  28-day  period  and  our 
subscription-based  fees  for  a  single  month,  it  assumes  that  activity  during  those  measurement  periods  has 
continued at the same rate for a full year. Because it annualizes a short measurement period, Run-Rate Revenue 
measured  during  a  period  of  seasonally  higher  or  lower  usage,  such  as  the  reduced  usage  we  have  typically 
experienced around holiday and vacation periods in the summer and winter, may differ significantly from Run-
Rate  Revenue  measured  at  other  times,  and  in  each  case  may  not  correspond  to  the  revenue  we  ultimately 
recognize over any quarter or fiscal year. Our actual historical revenue and future revenue may differ materially 
from this measure. Both our consumption-based and subscription-based revenue may fluctuate from period to 
period,  and  in  particular,  our  consumption-based  revenue  may  fluctuate  significantly  or  decline  if  customers 
reduce,  limit,  or  do  not  expand  their  usage  or  spend,  or  shift  usage  to  lower-priced  models,  including  in 
response  to  competitive  offerings,  pricing  changes,  changes  in  customer  budgets  or  strategic  priorities 
regarding AI investment, seasonality, or general economic conditions. In addition, sustaining and growing this 
revenue depends on our ability to continue to offer models at the frontier of AI capability, which we may not be 
able to do. Our ability or decision to remain at the frontier may also be affected by the safety and risk mitigation 
measures we implement in developing and releasing our models. Our recent Run-Rate Revenue growth has also 
been driven in part by rapid initial customer adoption and expansion often characteristic of an early-adoption 
period and the nascency of the AI market that may not be sustainable, and we expect our Run-Rate Revenue 
growth rate to decline over time, and it may decline significantly and more rapidly than we anticipate, as our 
revenue  base  increases,  as  the  market  matures,  and  as  a  result  of  other  factors. In  addition,  our  Run-Rate 
Revenue has included, and we expect will continue to include, amounts from customers that we subsequently 
determine  are  using  our  models,  platform,  and  applications  in  violation  of  our  usage  policy  or  commercial 
terms. When we identify such usage, we seek to restrict or terminate the customer’s access; however, because 
our  detection,  investigation,  and  enforcement  take  time,  our  Run-Rate  Revenue  as  of  any  measurement  date 
includes amounts from customers that have not yet been restricted or terminated and whose revenue would not 
be expected to recur following restriction or termination of their access. Our continued enforcement efforts may 
reduce  our  revenue,  Run-Rate  Revenue,  and  growth  rates  in  future  periods.  See  “—Our  results  of  operations 
may  fluctuate  significantly  on  a  period-to-period  basis,  including  as  a  result  of  strategic  investment  decisions 
and  substantial  compute-related  expenditures,  which  could  cause  the  market  price  of  our  Class  A  common 
stock to decline.” Accordingly, our Run-Rate Revenue as of any measurement date is not indicative of historical 
revenue and may not be indicative of our revenue for any future period. 

The determination of the number of customers with $100,000 or more of revenue on a TTM basis is based on 
our internal records and involves judgment, including in determining which accounts should be aggregated and 
treated as belonging to the same organization. We apply our most current customer records in calculating this 
metric,  and  our  determination  of  which  accounts  belong  to  a  single  organization  may  change  over  time, 
including as a result of acquisitions and account consolidations. We do not separately define or internally track 
a category of “enterprise” customers, and our customers are not segmented or measured internally by reference 

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