(Average Revenue per User) calculated by dividing total revenue by the number of active users. It’s a metric that shows the average revenue generated by each user.
This metric shows you how much money you make on average from each user. You can calculate the ARPU of your game by dividing your daily income by the number of active users per day. In general, the ARPU of casual games (Candy Crush etc...) is around 4-10 cents. Assuming you have 1000 active users per day, your daily income will be $40 (1000 X $0.04 = $40).
It is very important for product managers to observe the ARPU trend in terms of showing how much revenue the game generates from each user on a daily basis, on average. Your game may have low daily revenue, but if your revenue per player is high, you can increase your daily revenue by spending a little more marketing budget. Generally, when the number of players increases drastically, ARPU will decrease relative to this number, but still ARPU is one of the most important metrics to look at when making the decision to spend more marketing budget.