Average Revenue Per User (ARPU) is a key performance metric that calculates the average amount of revenue generated per active user over a defined time period—usually monthly or annually. It’s calculated by dividing total revenue by the number of active users. ARPU is widely used in SaaS, telecom, and subscription-based businesses to evaluate pricing strategy, customer value, and overall financial health. Monitoring ARPU helps identify trends, segment profitability, and optimize growth strategies.
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