Average Revenue Per Unit - ARPU

What is the 'Average Revenue Per Unit - ARPU'

The average revenue per unit (ARPU) is 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.

RELATED TERMS
  1. Average Revenue Per User (ARPU)

    A measure of how much income a business generates, given the ...
  2. Revenue Generating Unit - RGU

    An individual service subscriber who generates recurring revenue ...
  3. Revenue

    The amount of money that a company actually receives during a ...
  4. Revenue Recognition

    An accounting principle under generally accepted accounting principles ...
  5. Marginal Revenue Product - MRP

    The change in revenue that results from the addition of one extra ...
  6. Sales Per Share

    A ratio that computes the total revenue earned per share over ...
Related Articles
  1. Professionals

    Revenue Analyst: Job Description & Average Salary

    Learn what a revenue analyst does and what skills are needed to succeed in the position. Determine the education and experience required to work in this field.
  2. Investing

    S&P 1500 Index: A Revenue Case Study

    Learn what comprises the S&P 1500 and how analysts use revenue trends to benchmark against the performance of a portfolio or single stock investment.
  3. Investing

    Asset Turnover Ratio

    Investopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ...
  4. Charts & Patterns

    Stock Analysis Basics: How To Forecast Revenue and Growth

    Forecasted revenue and growth projections are important components of security analysis, leading to a stock’s future worth.
  5. Investing Basics

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  6. Professionals

    Revenue Analyst: Career Path & Qualifications

    Learn more about the duties of a revenue analyst and the qualifications needed for the position, along with the career path for these professionals.
  7. Fundamental Analysis

    Valuing And Investing In Internet Companies

    How do we pick the right names to invest in from this highly lucrative sector?
  8. Stock Analysis

    Twitter Shares Drop on Disappointing User Numbers

    Twitter misses on user growth, a fact that has trumped its positive earnings results and an uptick in advertising revenue.
  9. Economics

    What is Operating Revenue?

    Operating revenue is income that’s derived from sources related to a company’s everyday business operations.
  10. Stock Analysis

    This Hated Stock Could Soon Be Worth Twice As Much

    Shares of Twitter (NYSE:TWTR) have been slammed lately after weak user growth and an inability to monetize its platform led investors to question the future. The big move in shares of the 14 ...
RELATED FAQS
  1. What are some of the common trends of the Average Revenue Per User in the telecommunications ...

    Learn about the common trends in the average revenue per user, or APRU, for the telecommunications industry and why ARPU ... Read Answer >>
  2. How is the marginal cost of production used to find an optimum production level?

    Understand more about production cost calculations, and specifically how the marginal cost of production is used to determine ... Read Answer >>
  3. Has increased data usage affected the telecommunications sector in developed countries?

    Read about which developed countries are leading the charge in the global telecommunications sector, and learn why Europe ... Read Answer >>
  4. How do companies calculate revenue?

    Revenue is the amount of money a company receives in exchange for its goods and services. The revenue received by a company ... Read Answer >>
  5. Why do companies stop trying to increase marginal revenue?

    Learn what marginal revenue seeks to measure and understand why a company would want to stop increasing its marginal revenue ... Read Answer >>
  6. How is marginal revenue related to the marginal cost of production?

    Learn about the marginal cost of production and marginal revenue and how the two measures are related when determining the ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center