Average Revenue Per User (ARPU)

The average amount of revenue generated by each active user or account over a specific time period, typically measured monthly or annually.

Why it matters: ARPU is a core health metric. Increasing ARPU without increasing CAC significantly improves overall profitability and indicates customers derive increasing value.

In practice: If a SaaS company has $100,000 in MRR and 500 active customers, their ARPU is $200 per month.