Average Revenue Per User (ARPU) is a financial metric that measures the average amount of revenue that a company generates from each of its users or customers. This metric is commonly used by companies that offer subscription-based products or services, as it provides a way to measure the value of each customer over time.
For example, a company that sells software as a service (SaaS) might have 100 customers who pay $100 per month for a subscription to the software.
In this case, the company's average revenue per user would be ($100 x 100) / 100 = $100.
This means that, on average, the company generates $100 in revenue from each of its customers each month.
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