The most simple definition of the matter comes from Wikipedia: the runout matrix is "an alphanumeric code (and on occasion, other symbols) stamped or handwritten (or a combination of the two) into the run-out groove area of a phonograph record."

Runouts are extremely important to the vinyl record collecting community, because they hold so much information in the text that helps us identify when it was made, where it was mastered at, what company pressed it, and other fun information.