ARPA stands for "Average Revenue per Account" and is a key figure used in financial analysis and management. It indicates the average revenue that a company generates per customer (or account) within a certain period of time. ARPA is particularly important in subscription-based business models such as SaaS (Software as a Service) or telecoms companies. It is calculated by dividing the total revenue by the number of customer accounts. A rising ARPA value can indicate successful monetisation and an improved product offering, while a falling value can indicate problems with customer retention or pricing.
ARPA (Average Revenue per Account): Important key figure for sales analysis and customer loyalty
July 17, 2024