Search Investopedia

Revenue Per User - RPU

Filed Under »
Dictionary Says

Definition of 'Revenue Per User - RPU'

A ratio used to express the profitability of a company on a per-user basis. RPUs are calculated by taking overall revenue and dividing by total number of users:

Revenue Per User (RPU)
Investopedia Says

Investopedia explains 'Revenue Per User - RPU'

This ratio is mainly used by service providers, such as telephone providers. This measure helps companies to uncover deficiencies and plan strategies for growth. RPU also helps the company determine which product or service lines produce the most revenue per customer and, therefore, which customer relationships are the most important.

Related Definitions

  • Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure ...
    Read More »

  • Revenue Per Employee

    An important ratio that looks at a company's sales in relation to the number of employees they have. It is calculated as:
    Read More »

  • Gross Sales

    A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods ...
    Read More »

    • Net Sales

      The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. The sales number reported on a company's ...
      Read More »

    • Margin

      1. Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin". 2. The amount of equity contributed by a customer as a percentage of the ...
      Read More »

    • Revenue Generating Unit - RGU

      An individual service subscriber who generates recurring revenue for a company. This is used as a performance measure with analysts, investors and other participants. Investors will look ...
      Read More »

    • Cost Per Gross Addition - CPGA

      A ratio used to quantify the costs of acquiring one new customer to a business. Often, the CPGA ratio is used by companies that offer subscription services to clients, such as wireless ...
      Read More »

    • End-User

      The true consumer of a product or service. The term "end-user" is used to distinguish the person who will actually work with the good or service from individuals who are involved in ...
      Read More »

    • Average Margin Per User - AMPU

      A widely used metric for gauging the success of businesses in the telecommunications industry. Average margin per user (AMPU) measures the margin made by the firm from each customer, ...
      Read More »

    • Licensing Revenue

      Income earned by a company for allowing its copyrighted or patented material to be used by another company. Some examples of things that may be licensed include songs, sports team logos ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions