Revenue analytics and unit economics ARPPU: Average Revenue Per Paying User

109. ARPPU: Average Revenue Per Paying User

If we zoom out a little from ARPU we will arrive at ARPPU. The addition P in ARPPU stands for Paying – Average Revenue Per Paying User. It could be a little bit confusing – isn’t it the same as LTV?

As we’ve discussed earlier LTV is an expected value of all revenues we’ll get from a customer. This month (or year), next month, month after next and so on until they churn.

In contrast ARPPU is an average revenue per customer. The formula is the same as ARPU we just use only customers in denominator: the total revenue divided by the total number of...

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