ARPU: Average Revenue Per User

ARPU is a key metric that measures how much money a company earns from each user on average over a specific period. It's calculated by dividing total revenue by the number of users.

Why is it important?

• Monetary value of users: Shows how much each user contributes to revenue.
• Business performance: Helps evaluate a company's financial health and monetization strategy.
• Comparison and benchmarking: Can be used to compare performance with competitors.
• Decision-making: Informs pricing, marketing, and product development strategies.

Factors affecting ARPU:

• Pricing
• Customer retention
• Additional product sales
• Marketing effectiveness

By understanding ARPU, companies can optimize revenue and make data-driven decisions.