ARPU (Average Revenue Per User)

ARPU (Average Revenue Per User) measures how much revenue each active user generates on average during a given time period. It's one of the most important metrics for SaaS companies, telecommunications firms, streaming services, and all digital businesses with recurring revenue.

Why is ARPU important?

ARPU helps you understand monetization efficiency and track how well you're extracting value from your user base over time. Combined with CAC and churn rate, it forms a complete picture of business health.