What is ARPU (Average Revenue Per User)?

Average Revenue Per User (ARPU) is a financial term that tracks user or customer revenue over time. Software, mobile apps, and technology use it. It's computed by dividing a company's revenue by its consumers. This metric measures product, service, and application performance and firm value per user. ARPU can show user value trends and pricing strategy effectiveness. It can also compare product or company performance and benchmark against industry averages.