ARPU: Average Revenue Per User
Average monthly or annual revenue generated per active customer.
Formula
Why it matters
ARPU reveals whether revenue growth is driven by new customer volume or by increasing per-customer value. Flat ARPU with growing MRR means acquisition-dependent growth; rising ARPU means expansion revenue is working.
How to improve ARPU
Introduce higher-tier plans with compelling features, add usage-based pricing components, and build expansion triggers into the customer success motion.
Depends on product tier and market segment. Rising ARPU indicates successful upsell motion.
Prooflytics tracks ARPU automatically from your connected sources and flags it in your daily briefing when it moves significantly.
Start free trialFrequently asked questions
Is ARPU monthly or annual?
Both conventions exist. SaaS companies typically report monthly ARPU to align with MRR tracking. Some use annual ARPU in investor reporting. Always specify the period when communicating ARPU.