Revenue Per User (RPU)

Revenue per user (RPU) is a ratio used to express revenue generated by a company on a per-user basis. It is most often used by companies that generate revenue by selling subscription services and measures how robust the product usage is across the customer base. Social media sites that allow free access also use the revenue per user ratio. Since free social media sites generate revenue through ad sales, more users equal more foot traffic to their sites which equates to higher revenues from ad space. Monitoring customer usage and revenue per user is a quick litmus test for these companies to keep in touch with their financial health.