Definition
Total revenue divided by the total number of paying accounts, commonly used in B2B where 'account' may include multiple seats.
Why it matters for growth
ARPA is often more useful than per-user metrics in B2B, since the buying and billing unit is the account, not any single individual seat.
Example
A company with $100,000 in MRR across 200 accounts reports an ARPA of $500 per month.
FAQ
- What is Average Revenue Per Account (ARPA)?
- Total revenue divided by the total number of paying accounts, commonly used in B2B where 'account' may include multiple seats.
- Why does Average Revenue Per Account (ARPA) matter for growth?
- ARPA is often more useful than per-user metrics in B2B, since the buying and billing unit is the account, not any single individual seat.
- What is an example of Average Revenue Per Account (ARPA)?
- A company with $100,000 in MRR across 200 accounts reports an ARPA of $500 per month.