Explore commonly used personal finance terms.
Average Revenue per User (ARPU) is a performance metric commonly used by subscription-based companies and telecommunications businesses. It calculates the revenue generated from each user over a specified period, often monthly or annually, by dividing total revenue by the number of users. ARPU helps businesses understand customer value, optimize pricing strategies, and compare financial performance across periods. Higher ARPU indicates stronger revenue generation per user, which is crucial for scaling operations and profitability.
