We can all agree that Daily Active Users is a "hot" metric, especially for apps and SaaS companies. Executives, investors, and analysts love to keep a close eye on DAU because it shows the growth potential and indicates the stickiness of your product or service.

A fast-growing number of DAUs is an almost certain promise for revenue. A sustainable base of active users is the bread and butter for new and rapidly growing businesses.

Nevertheless, you need to keep a cool head because fast-growing high DAUs can easily turn into a misleading vanity metric if looked at in an isolated manner. DAU as a core metric is most valuable in correlation with other parameters. Read on to find out how to track Daily Active Users effectively and what the numbers will tell you.