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Glossary
ARPU (Average Revenue Per User)
The only thing difficult about ARPU is that the common reaction to first hearing the term pronounced in an analyst conference is to think that it might be spelled somthing like r-poo.
Note that Revenue Per User and Average Revenue Per User should be the same.
As a metric it has limited use compared to ASP (average selling price) because a user may buy units of different value. Increasing ARPU could be due to users (customers) buying more different items, or to price increases on existing items.
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Disclaimer: Our analyst summaries may include both our condensations of statements made by company representatives and our own analysis. They are not covered by any warranty. We cannot guarantee anything said by company representatives is true. We try not to make errors, but it is possible. Before making or terminating an investment you should always verify any factual basis of your decision.
Copyright 2009 William P. Meyers