Average Revenue Per User (ARPU)

Average Revenue Per User is total recurring revenue divided by the number of active users, rather than accounts. Where ARPA measures the value of a customer, ARPU measures the value of a seat — the two diverge exactly as much as your accounts are multi-user.

It is the more useful lens for seat-based and product-led businesses. Rising ARPU with accounts steadily adding seats tells you growth is coming from deeper adoption inside customers, which is usually the stickiest kind.

Divide total MRR by the number of active related users in the period. If ARPA is $200 and the average account has roughly three active users, ARPU lands near $70. Decide clearly what counts as an active user, or the denominator — and the metric — drifts.

Track ARPU beside average active users per account: more users per account with steady ARPU means you are adding seats faster than you monetise them, which can be healthy or a pricing gap depending on your model.