Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU) serves as a metric for calculating the average revenue generated by each active user of an app during a specific period. Initially utilized in the telecom industry, ARPU helps by determining the value of individual users or user segments based on their behavior. Though similar to lifetime value (LTV), which measures a user's value throughout their entire lifecycle, ARPU focuses on a specific time frame. ARPU is calculated by dividing the total revenue generated by the number of unique users.    

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