ARPU, or Average Revenue Per User, is a key metric used by businesses to measure the average amount of revenue generated by each individual customer. It is calculated by dividing the total revenue earned by a company over a specific period of time by the total number of active users during that same period. ARPU is a crucial indicator of a company’s financial health and growth potential, as it reflects the effectiveness of its pricing strategies and customer retention efforts. A high ARPU indicates that a company is successfully generating more revenue from its customers, while a low ARPU may suggest the need for improvement in these areas. ARPU is commonly used in industries such as telecommunications, media, and technology, where companies rely heavily on recurring customer subscriptions or usage-based fees.