Average Revenue Per Unit - ARPU

AAA

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.

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.

RELATED TERMS
  1. Average Margin Per User - AMPU

    A widely used metric for gauging the success of businesses in ...
  2. Revenue

    The amount of money that a company actually receives during a ...
  3. Revenue Per User - RPU

    A ratio used to express the profitability of a company on a per-user ...
  4. Revenue Generating Unit - RGU

    An individual service subscriber who generates recurring revenue ...
  5. Last Mile

    A phrase used in the telecommunications and technology industries ...
  6. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. How To Pick The Best Telecom Stocks
    Personal Finance

    How To Pick The Best Telecom Stocks

  3. Executing A Swot Analysis
    Investing Basics

    Executing A Swot Analysis

  4. Examples Of Using SWOT Analysis To Get ...
    Investing Basics

    Examples Of Using SWOT Analysis To Get ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center