Revenue Per User - RPU

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)

BREAKING DOWN '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.

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