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.

BREAKING DOWN '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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