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Average revenue per user

A simple mean that expresses the average amount of money customers spend on a company's product or service.

Expanded Definition

Average revenue per user (ARPU) can be a particularly helpful metric for subscription businesses, where we as financial analysts can gain an understanding through ARPU of whether the average customer is spending more this month than last month, or this year than last year, on a company's product or service.

Use of this Term in a Foolish Example Sentence

"What's more, with the cheapest iPhone plan costing $70/month, AT&T's average revenue per user (ARPU) grew by $2.24 annually, to $61.23."

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