Is ARPA monthly or annual?

The computation of ARPA involves dividing a company's monthly recurring revenue (MRR) by the total number of active accounts. MRR represents the predictable income stream generated by subscriptions or recurring payments, which is vital for maintaining stable cash flow.

The active account count, on the other hand, refers to the total number of customer accounts that are currently generating revenue for the company. This metric excludes inactive or dormant accounts, providing a more accurate picture of the company's revenue-generating capacity.

The metric of ARPA, which stands for Average Revenue Per Account, is a crucial indicator in assessing the financial health of a company, particularly in the realm of subscription-based services. It offers valuable insights into the profitability of each active account, enabling businesses to make informed decisions regarding pricing strategies and customer acquisition costs.

By analyzing ARPA, companies can identify areas of strength and weakness within their customer base. A high ARPA may indicate a successful pricing strategy or a high level of customer satisfaction, while a low ARPA could signal the need for upselling, cross-selling, or other revenue-enhancing initiatives.

In the world of cryptocurrency exchanges, ARPA is just one of many metrics that exchanges like BTCC use to measure their performance. BTCC, a top cryptocurrency exchange, offers a comprehensive suite of services that includes spot trading, futures trading, and wallet solutions, among others. These services contribute to BTCC's MRR and active account count, ultimately influencing its ARPA.