The Average Revenue per User (ARPU) is a performance indicator used in the services sector. It measures the average amount of revenue generated per user during a given period (usually per month). This indicator is used to assess the profitability of the services offered and evaluate the value of customers to the business.
To calculate the ARPU, simply divide the total revenue generated by the number of active users during the specified period. For example, if a company generates a total of €100,000 in revenue during a month and has 10,000 active users during that period, its ARPU will be €10 per month per user.
The ARPU can be used to compare the performance of different companies in the same sector, but it should be noted that each company offers different services and their customer base may differ in terms of profile and purchasing behavior.
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