ARPU (Average Revenue Per User)
The average amount of revenue generated per user over a specific time period.
Definition
ARPU measures how much revenue each user generates on average. It's particularly useful for subscription businesses, mobile apps, and any business with a user-based revenue model.
How to Calculate
ARPU = Total Revenue / Number of Users
Real-World Example
Mobile App: $100,000 monthly revenue with 10,000 active users
ARPU = $100,000 / 10,000 = $10 per user per month