What is the difference between ARPU and LTV?

The prime difference between LTV and ARPU is in the timeframe used to compute these measures.

LTV (Lifetime Value) is an estimate of the financial value of each customer. This metric looks at the net profit a business can generate from its customers during their relationships with the brand.

In contrast, ARPU (Average Revenue Per User) refers to the average sum of money an e-commerce retailer makes from a customer over a defined period. Moreover, LTV metrics focus on the long-term customer value, whereas ARPU only looks at the short-term value.