Definition

Average Revenue Per Paying User (ARPPU) measures the average revenue generated from paying users, including total revenue from subscriptions and non-renewing purchases.

One of the main goals of any mobile business is to maximize revenue. ARPPU is a critical value for understanding the revenue potential of your paying users.

Knowing the ARPPU of different groups of users allows you to optimize your marketing efforts and focus on high-performing user acquisition campaigns. ARPPU-driven measurement helps identify which media sources bring the top-paying users and which are underperforming and should be stopped.

Understanding who your high LTV users are can help you find more like them through lookalike campaigns, leading to increased total app revenue.

Segments

Segment By

There are various segments that can be applied to the chart: Installation Period (segment by day, week, month, quarter, or year), country, platform, etc.

Calculate using Sales or Proceeds

You can choose whether to calculate ARPPU using Sales (after refunds) or Proceeds (after refunds, store commissions, and VAT).

Cohort Period

Default value - Max. This indicates the number of days (0-365) or Max (no limitation). Day 0 is the first 24 hours from the moment a user installed the app. Day 1 is the next 24 hours, and so on.

This setting can be used to understand the average revenue up to the Nth day of a user's life. This helps estimate when paid installs are paying off.

For instance, if there are 200 new users installed the app within the selected period, and 40 of them have made purchases totaling $80 by Day 7, ARPPU by Day 7 would be calculated as follows:

ARPPU = Total Revenue from Paying Users / Number of Paying Users

ARPPU = $80 / 40 = $2

This means that, on average, each paying user brings $2 by the end of the seventh day of their lifetime.

Calculate users by events

• Purchase (default) – count all paying users in the selected cohort for ARPPU calculation. For example, if there are 10 paying users that installed the app within the selected period and they have made purchases totaling $10 by now, ARPPU is equal to $10 / 10 = $1 per paying user.
• Trial Converted – calculate average revenue only among those new users who have started a trial and then converted to a paid subscription.
  For example, if there are 50 users who have started a free trial, and 10 of these trial users have converted into paid subscriptions, making purchases totaling $10 by now, ARPAS is equal to $10 / 10 = $1 per paying trial-converted user.