Average Revenue Per User (ARPU) is a key metric used to calculate the average revenue generated by each active user of an app within a specified period. Originally used in the telecom industry, ARPU aids in assessing the value of individual users or user segments based on their activity. While similar to lifetime value (LTV), which evaluates a user’s total value over their entire lifespan, ARPU focuses on a specific timeframe. The ARPU is determined by dividing the total revenue generated by the number of unique users.