ARPU (Average Revenue Per User)

ARPU, or Average Revenue Per User, measures the average amount of money a company earns from each customer or user over a specific period. It helps businesses understand how well they are generating revenue from their user base. To calculate ARPU, divide the total revenue generated during that period by the number of active users. This metric provides insights into the company's financial performance, efficiency, and growth potential. A higher ARPU indicates that, on average, each user contributes more to the company's revenue, which can reflect successful monetization strategies.