Average Revenue Per Unit - ARPU
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Definition of 'Average Revenue Per Unit - ARPU'
A measure of the revenue generated per user or unit. Average revenue per unit allows for the analysis of a company's revenue generation and growth at the per-unit level, which can help investors to identify which products are high or low revenue-generators.
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Investopedia explains 'Average Revenue Per Unit - ARPU'
This measure is most often used in the telecommunications sector to survey the amount of revenue generated per cell-phone user, for example. The values of the measures obtained can be used as a comparison between companies. Companies may also use this information to determine which product lines are lagging.
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