ARPU, or Average Revenue Per User, is a metric used to measure the average amount of revenue generated by each individual user of a product or service. It is calculated by dividing the total revenue generated by the number of users, providing insight into the profitability and value of each customer. ARPU is commonly used in industries such as telecommunications, media, and technology to track the effectiveness of pricing strategies and customer retention efforts. A higher ARPU indicates a more profitable and engaged customer base, while a lower ARPU may suggest the need for adjustments in pricing or marketing strategies.