Vareto Finance Glossary

Daily Active Users

Definition

Daily active users is a SaaS metric that is used by businesses to know how many unique users used the company's product or service every day. This metric is also used by businesses to know the success rate of their product or service since it indicates the value that daily engaged users derive from the same.

Example

Daily Active Users metric is calculated as:DAU = unique new users + unique returning users

Why it matters

Daily active users (DAU) is a key SaaS metric that businesses should follow especially if they have a subscription model. A high DAU is considered a good sign since it means that current customers continue to use the company's product or service and more customers are signing up. A falling DAU means active users are dropping and this indicates the starting of churn.