Definition
Revenue Per User (ARPU - Average Revenue Per User) is a metric that calculates the total revenue generated by a company divided by the total number of users over a specific period.
Why it matters (in Poovi’s context)
Figma’s strategy focuses on increasing revenue per user by encouraging adoption of multiple products, rather than solely focusing on acquiring new users.
Key properties or components
- Total Revenue divided by Number of Users
- Measures monetization efficiency
- Can be increased by upselling/cross-selling
Contradictions or debates
None.