What is Average Revenue Per User (ARPU)?

What is Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU) is a metric used by companies to measure how much revenue they are generating per customer or user, usually expressed as a monthly or annual average. ARPU is calculated by dividing the total revenue generated by the company over a given period by the total number of active customers or users during that period. ARPU is an important metric for subscription-based businesses, as it can help them identify opportunities to increase revenue by upselling, cross-selling, or improving their pricing strategy.