Average Revenue Per User

Average revenue per user means the average amount of revenue a company earns from each user or customer. In simple terms, ARPU shows how much money each user brings in on average. Average revenue per user is important because it helps investors understand monetization. A company can grow by adding more users, earning more from each user, or both. For example, if a streaming service earns $100 million from 10 million users, its average revenue per user is $10. Average revenue per user is not the same as profit per user. It measures revenue, not the costs required to serve each user.