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The average revenue per user (ARPU), also called average revenue per unit, is often used by tech, media, and telecom companies to track their revenue per customer.
To find your ARPU, you can divide your total revenue from active users by the average number of active users over a specific period, such as a month. While it’s not a generally accepted accounting principles (GAAP) measure, tracking ARPU can be important.
You can use your company’s ARPU to forecast its potential growth or compare similar companies’ ARPU to see how well you’re performing. You may also get insight into your business by comparing your ARPU from different business lines or types of customers.
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