User Growth - Daily Active Users (DAUs) increased to 46.6 million, a 49% year-over-year growth, while Monthly Active Users (MAUs) reached 130.2 million, up 33% year-over-year[4][11]. - Daily Active Users (DAUs) are projected to grow in the range of 40% to 45% for Q2 2025[45]. Financial Performance - Total revenue for Q1 2025 was $230.7 million, representing a 38% increase year-over-year, with subscription revenue growing by 45% year-over-year to $191.0 million[11][31][33]. - Net income rose to $35.1 million, a 30% increase compared to $27.0 million in Q1 2024[11][41]. - Adjusted EBITDA increased to $62.8 million, reflecting a margin of 27.2%, up from 26.3% in the prior year[11][41]. - Revenues increased by 37.7% from $167,553,000 in Q1 2024 to $230,743,000 in Q1 2025[65]. - Gross profit rose to $164,096,000 in Q1 2025, up 34.1% from $122,362,000 in Q1 2024[65]. - Net income increased by 30.4% from $26,956,000 in Q1 2024 to $35,135,000 in Q1 2025[66]. - Adjusted EBITDA grew by 42.6% to $62,804,000 in Q1 2025, compared to $44,005,000 in Q1 2024[70]. - Free cash flow reached $103,012,000 in Q1 2025, up 31.2% from $78,493,000 in Q1 2024[76]. Bookings and Guidance - Total bookings for Q1 2025 were $271.6 million, a 38% increase year-over-year, driven by a 44% rise in subscription bookings[11][31]. - The company is raising its full-year bookings guidance to a midpoint of 29% year-over-year growth[6]. - Duolingo expects Q2 2025 bookings to be between $243.5 million and $246.5 million, representing a year-over-year growth of 28.1% to 29.7%[43]. - For FY 2025, Duolingo projects total bookings of $1,117.5 million to $1,126.5 million, with a year-over-year growth of 28.4% to 29.4%[43]. Revenue and EBITDA Projections - Revenue guidance for Q2 2025 is set at $238.5 million to $241.5 million, indicating a year-over-year growth of 33.7% to 35.4%[43]. - The company anticipates FY 2025 revenues to range from $987 million to $996 million, reflecting a year-over-year growth of 31.9% to 33.2%[43]. - Adjusted EBITDA for Q2 2025 is expected to be between $58.4 million and $61.6 million, with an adjusted EBITDA margin of 24.5% to 25.5%[43][47]. - Duolingo is raising its full-year Adjusted EBITDA margin guidance to 28% at the midpoint, representing a 230 basis point expansion over the previous year[47]. - Duolingo anticipates a sequential Adjusted EBITDA margin expansion of about 200 basis points in Q3 2025, with further improvements expected in Q4[48]. Operational Metrics - Operating cash flow increased to $105.6 million, a 26% rise from $83.5 million in the prior year[11][41]. - Operating expenses increased by 32.6% to $140,502,000 in Q1 2025, compared to $105,923,000 in Q1 2024[65]. - The adjusted EBITDA margin improved slightly from 26.3% in Q1 2024 to 27.2% in Q1 2025[70]. Assets and Equity - Total assets increased from $1,301,728,000 in December 2024 to $1,403,146,000 in March 2025[64]. - Total stockholders' equity rose to $893,826,000 in March 2025, up from $824,550,000 in December 2024[64]. - Cash and cash equivalents increased from $785,791,000 in December 2024 to $883,996,000 in March 2025[64]. Subscriber Growth - Paid subscribers reached 10.3 million, marking a 40% increase from the previous year[11][31]. Product Development - A new Chess course will be launched, expanding the learning content beyond language[12][15]. - The Duolingo Max subscription tier is seeing increased adoption, with enhancements like 3D interactions and new features planned for the coming months[16][17]. Share Count - The fully diluted share count is expected to increase by about 1% in 2025[49]. Margin Expectations - The company expects a year-over-year decline in gross margin of approximately 150 basis points for FY 2025, an improvement from previous guidance[46].

Core Insights - Duolingo reported an outstanding first quarter for 2025, achieving the highest number of Daily Active Users in its history, indicating strong product and brand performance [2] - The company surpassed 10 million paid subscribers and experienced a 38% year-over-year revenue growth, driven by user momentum and increased adoption of premium subscription tiers [2] - Duolingo Max is anticipated to drive innovation and growth, with ongoing investments in AI enhancing content creation capabilities [2] Company Overview - Duolingo is recognized as the leading mobile learning platform globally, with its app being the most popular method for language learning and the top-grossing app in the Education category on both Google Play and the Apple App Store [4] - The company is committed to providing a fun, engaging, and effective learning experience while striving to make high-quality education universally accessible [4]

Core Insights - Duolingo has launched 148 new language courses, more than doubling its current offerings and marking the largest content expansion in the company's history [1][8]. Company Expansion - The new courses make Duolingo's seven most popular non-English languages available to all 28 supported user interface languages, significantly expanding learning options for over a billion potential learners worldwide [2][5]. - The development of these courses was accelerated by advancements in generative AI, allowing the company to create and launch nearly 150 new courses in less than a year, compared to the previous timeline of about 12 years for the first 100 courses [3][4]. Learning Features - The new courses primarily support beginner levels (CEFR A1 – A2) and include immersive features such as Stories for reading comprehension and DuoRadio for listening comprehension, with more advanced content expected to roll out in the coming months [4][5]. Market Reach - The expansion allows Duolingo to better serve global learners, particularly in the growing demand for popular Asian languages like Japanese, Korean, and Mandarin, with new course availability for various language speakers across different regions [5][9].

Group 1 - The article discusses the investment potential of Duolingo, highlighting its growth and market position [1] - It emphasizes the company's unique offerings in the language learning sector, which differentiate it from competitors [1] - The article suggests that Duolingo's innovative approach and user engagement strategies contribute to its strong performance [1] Group 2 - The Motley Fool recommends Duolingo as a promising investment opportunity [1] - The article notes that the author, Parkev Tatevosian, has no personal investment in the stocks mentioned, ensuring an unbiased perspective [1] - It mentions the potential for financial compensation for promoting services, indicating a business relationship with The Motley Fool [1]

Core Viewpoint - Kyndryl Holdings, Inc. (KD) is currently viewed as a more attractive option for value investors compared to Duolingo, Inc. (DUOL) based on various valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - KD has a forward P/E ratio of 15.43, significantly lower than DUOL's forward P/E of 145.53, indicating that KD is more reasonably priced relative to its earnings [5]. - KD's PEG ratio stands at 3.09, while DUOL's PEG ratio is slightly higher at 3.30, suggesting that KD may offer better value when considering expected earnings growth [5]. - KD's P/B ratio is 6.19, compared to DUOL's P/B of 20.81, further emphasizing KD's relative undervaluation [6]. Earnings Outlook - KD has a Zacks Rank of 2 (Buy), indicating a positive revision in earnings estimates, while DUOL holds a Zacks Rank of 3 (Hold), reflecting a less favorable earnings outlook [3][7]. - The improving earnings outlook for KD positions it as a superior value option in the current market [7].

Core Insights - Duolingo is the largest global language learning platform offering gamified courses for over 40 languages [1] Company Overview - Duolingo is recognized as one of the highest quality businesses in the public markets, particularly in the challenging consumer subscription sector [1] Investment Perspective - The company has attracted significant venture capital investment, indicating strong market confidence [1]

Core Viewpoint - Analysts project that Duolingo, Inc. (DUOL) will report quarterly earnings of $0.52 per share, reflecting an 8.8% decline year over year, while revenues are expected to reach $223.33 million, marking a 33.3% increase from the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has been revised upward by 2.9% over the past 30 days, indicating a collective reassessment by analysts [2] - It is crucial to consider revisions to earnings projections prior to a company's earnings release, as they are a strong indicator of potential investor behavior [3] Revenue Estimates - Analysts forecast 'Revenues- Subscription' to reach $187.35 million, indicating a year-over-year increase of 42.3% [5] - 'Revenues- Other- Duolingo English Test' is projected to be $12.59 million, suggesting a decline of 1.3% year over year [5] - 'Revenues- Other- Advertising' is expected to reach $14.16 million, reflecting a 9.3% increase from the previous year [5] Bookings and User Metrics - The consensus estimate for 'Total bookings' is $255.18 million, compared to $197.45 million in the same quarter last year [6] - 'Subscription bookings' are projected to be $219.26 million, up from $161.47 million year over year [6] - Analysts estimate 'Daily active users (DAUs)' will reach 46.00 million, an increase from 31.4 million in the same quarter last year [6] Active User Projections - The estimated 'Monthly active users (MAUs)' is 120.45 million, compared to 97.6 million in the same quarter last year [7] - 'Paid subscribers (at period end)' are projected to reach 10.47 million, up from 7.4 million year over year [7] Stock Performance - Over the past month, Duolingo shares have returned +21.2%, contrasting with a -4.3% change in the Zacks S&P 500 composite [8] - Currently, DUOL holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [8]

Duolingo, Inc. (DUOL) closed the most recent trading day at $375.02, moving +1.36% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.03%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 2.74%. The company's stock has climbed by 11.71% in the past month, exceeding the Business Services sector's loss of 3.26% and the S&P 500's loss of 5.07%. Analysts and investors alike will be keeping a close eye on the performance of Duolingo, Inc. in it ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Duolingo, Inc. (DUOL) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than expect ...

Core Insights - Duolingo is recognized as a high-growth consumer technology company, driven by rapid user growth and a successful subscription model [1][2][12] - The company has achieved significant user engagement, with daily active users (DAUs) reaching 40.5 million, a 51% increase year-over-year, and monthly active users (MAUs) at 116.7 million, a 32% rise [2][3] - Duolingo's financial performance is strong, with total revenue for 2024 at $748.0 million, a 41% increase, and subscription bookings increasing by 47% to $730.7 million [5][6] User Engagement and Growth - The DAU/MAU ratio stands at 34.7% in Q4 2024, indicating high user engagement, with over 10 million users maintaining learning streaks for more than a year [3] - Features like "Friend Streak" enhance social interaction, contributing to user retention, with a third of DAUs utilizing this feature [3] - The company has seen substantial growth on social media platforms, with over 430% growth on YouTube Shorts and 450% on Instagram Reels in 2024 [3] Financial Performance - By the end of 2024, Duolingo had 9.5 million paid subscribers, a 43% increase from the previous year, contributing to a net income of $88.6 million, up from $16.1 million in 2023 [5][6] - Adjusted EBITDA more than doubled to $191.9 million, with a margin increase of about 800 basis points to 25.7% [7] - The company generated $274.9 million in free cash flow in 2024, representing a 36.8% margin [7] Market Position and Valuation - Duolingo's stock has a 12-month price target of $372.92, indicating a 14.22% upside, with a consensus rating of Moderate Buy from 15 analysts [8] - The company's trailing price-to-earnings ratio is approximately 178.5, and its price-to-sales multiple is nearing 19.9, reflecting high growth expectations [9] - Insider selling by key executives totaled around $151.7 million over the past 12 months, which raises some concerns but may not indicate a negative outlook [10] Strategic Focus - Duolingo is enhancing its subscription offerings, including Duolingo Max, which utilizes AI features, and is promoting the Family Plan for higher retention rates [6] - The company's software-centric model offers scalability and recurring revenue, distinguishing it from hardware-focused tech companies facing supply chain issues [11][12] - Continuous product innovation and effective viral marketing strategies are key to Duolingo's leadership in the mobile learning space [12]