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What is Average Revenue Per User (ARPU)?

Average revenue per user (ARPU), also known as average revenue per unit, is a non-GAAP metric commonly used by digital media companies, social media companies, and telecommunications companies to assess their revenue-generating capabilities at the per-customer level.











The formula for average revenue per user is as follows:





Where:
  • Total revenue is the total revenue generated over the desired measurement period. 
  • Average subscribers is the average number of subscribers over the desired measurement period.



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