Term · Business Model & Operating KPIs
DAU/MAU Ratio
In briefThe DAU/MAU ratio expresses what share of monthly users return daily, thereby measuring engagement. For digital small-caps, a high value points to firm usage routines and strong product stickiness.
Definition
The DAU/MAU ratio measures what share of monthly users are also active daily and serves as an engagement indicator.
How it is calculated
Formula. DAU/MAU Ratio = Daily Active Users / Monthly Active Users.
Why it matters for small caps
For digital small-caps, a high ratio can point to strong usage habits and product stickiness.
Common misreadings
- The ratio is often assessed in isolation, even though usage frequency varies greatly by business model.
In the process
Frequently asked
What is the DAU/MAU ratio?
It is the ratio of daily to monthly active users. A higher value points to more frequent usage.
How is the DAU/MAU ratio calculated?
You divide the Daily Active Users by the Monthly Active Users. The result shows the intensity of usage.
Why should you not read the ratio in isolation?
The usual usage frequency differs greatly by business model. A low value is normal for products used less often.
Related terms
Sources
Primary
ESMA – Guidelines on Alternative Performance Measures
https://www.esma.europa.eu/document/esma-guidelines-alternative-performance-measures
https://www.esma.europa.eu/document/esma-guidelines-alternative-performance-measures
Methodology
U.S. SEC – Non-GAAP Financial Measures
https://www.sec.gov/rules-regulations/staff-guidance/corporation-finance-interpretations/non-gaap-financial-measures
https://www.sec.gov/rules-regulations/staff-guidance/corporation-finance-interpretations/non-gaap-financial-measures
Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.