Definition
Total revenue divided by the total number of active users in a period, showing average monetization per user.
Why it matters for growth
ARPU trends reveal whether pricing changes, upsells, or a shifting customer mix are increasing or decreasing revenue per user over time.
Example
A freemium app with mostly free users reports a low ARPU of $2, while a B2B tool with only paying seats reports a much higher ARPU of $80.
FAQ
- What is Average Revenue Per User (ARPU)?
- Total revenue divided by the total number of active users in a period, showing average monetization per user.
- Why does Average Revenue Per User (ARPU) matter for growth?
- ARPU trends reveal whether pricing changes, upsells, or a shifting customer mix are increasing or decreasing revenue per user over time.
- What is an example of Average Revenue Per User (ARPU)?
- A freemium app with mostly free users reports a low ARPU of $2, while a B2B tool with only paying seats reports a much higher ARPU of $80.