Core Viewpoint - Duolingo's stock price dropped over 21% due to lower-than-expected fourth-quarter booking guidance and a slowdown in daily active user growth, despite strong third-quarter earnings performance [1][2]. Financial Performance - Duolingo reported third-quarter revenue of $271.7 million, a 41% year-over-year increase, exceeding analyst expectations of $260.3 million [1][2]. - The company achieved an adjusted EBITDA of $80 million with a margin of 29.5%, up from 24.7% year-over-year [2]. - Net income for the third quarter was $23.4 million, showing significant growth compared to the previous year [2]. User Metrics - Monthly active users (MAUs) reached 135.3 million, a 20% increase year-over-year, while daily active users (DAUs) grew to 50.5 million, a 36% increase [2]. - Paid subscribers increased to 11.5 million, reflecting a 34% growth [2]. Strategic Adjustments - The company is shifting focus towards long-term plans, emphasizing teaching capability improvements over short-term monetization, which has impacted fourth-quarter booking expectations [4]. - Duolingo has resumed posting humorous content on social media to boost user engagement, which had previously been reduced [3]. Business Model - Duolingo operates on a "free + ads + premium" business model, relying on user growth and increased conversion rates to sustain revenue [5].

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.It's my first time covering Duolingo ( DUOL ) stock as an equity, but I've been using the app itself for quite a long time (before quitting at some point, I should admit), so I decided to take aOakoff Investments is a personal portfolio manager and a ...

Group 1 - The article introduces a subscription service, Beyond the Wall Investing, which provides access to high-quality equity research reports, potentially saving users thousands of dollars annually [1] - The author has experience using the Duolingo app and is now covering its stock for the first time, indicating a personal connection to the subject matter [1] - Oakoff Investments is highlighted as a personal portfolio manager and quantitative research analyst, focusing on balancing growth and value through proprietary Wall Street information [1] Group 2 - The investing group led by Oakoff Investments offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1]

Core Viewpoint - Duolingo (DUOL) shares experienced a decline of up to 20% in extended trading due to a fourth-quarter forecast for bookings that fell short of estimates, despite a strong overall quarterly earnings performance [1] Summary by Relevant Sections - **Earnings Performance** - The company reported a solid overall quarterly earnings beat, indicating strong performance in other financial metrics [1] - **Bookings Forecast** - Duolingo anticipates bookings to be in the range of $329.5 million to $335.5 million, which is below market expectations [1]

多邻国(DUOL.US)夜盘大跌超19%，报210美元。消息面上，多邻国公布第三季度业绩，营收2.717亿美 元，同比增长41%，超过分析师预期的2.603亿美元；每股收益5.95美元，亦超过预期的5.19美元。期内 付费用户数增长34%，达到1150万。展望第四季度，该公司预计预订量将在3.295亿至3.355亿美元之 间，低于市场的3.436亿美元；同时预计日活跃用户数增速将较第三季度的36%有所放缓，但九月和十 月的稳定趋势表明，同比增速仍将维持在30%左右。(格隆汇) ...

Core Insights - Duolingo, a language and chess learning app provider, has been on the watchlist for several months and recently reported Q3 2025 financials, leading to a stock dip of more than 10% [1] Financial Performance - The company reported its Q3 2025 financial results, which were significant enough to impact stock performance [1] Market Sentiment - The stock's recent performance indicates a cautious sentiment among investors, as evidenced by the notable dip following the earnings report [1]

Core Insights - Duolingo, Inc. reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and showing a significant increase from $0.49 per share a year ago, resulting in an earnings surprise of +31.94% [1] - The company achieved revenues of $271.71 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.30% and up from $192.59 million year-over-year [2] - Duolingo has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The sustainability of Duolingo's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $274.92 million, while for the current fiscal year, the estimate is $3.16 on revenues of $1.02 billion [7] Industry Context - The Technology Services industry, to which Duolingo belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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Core Insights - The article discusses the expertise of Dmytro, a finance and investment writer based in London, highlighting his experience in various financial sectors including crypto and forex [1]. Group 1 - Dmytro is the founder of multiple platforms such as Solvid, Pridicto, and Coinprompter, indicating a strong entrepreneurial background in finance [1]. - His work has been published in reputable financial outlets like Nasdaq, InvestorPlace, and U.S. News, showcasing his credibility and influence in the industry [1]. - Dmytro is also a retail investor with open positions in notable companies including NuBank, Duolingo, Disney, Verizon, and HSBC, reflecting his active engagement in the market [1].

Financial Data and Key Metrics Changes - The company reported a strong Q3 with bookings expected to reach nearly $1,200 million for the year, reflecting a 33% growth and an adjusted EBITDA margin of 29% [4][80] - Daily active users (DAUs) grew by 36% year-over-year in Q3, with September and October showing around 30% year-over-year growth [11][12] Business Line Data and Key Metrics Changes - The chess course is the fastest-growing course, surpassing both math and music in user engagement and retention [30] - The company is focusing on enhancing teaching efficacy, which is expected to drive user growth over time [15][16] Market Data and Key Metrics Changes - The company has seen significant user growth in Asia, aided by partnerships such as the one with Luckin [10] - The retention rate for chess users is slightly higher than that of language learners, indicating strong engagement [30] Company Strategy and Development Direction - The company is prioritizing long-term investments in AI to fundamentally transform education and improve teaching efficacy [5][14] - There is a strategic shift towards user growth over immediate monetization, with a focus on enhancing the freemium experience [36][88] Management's Comments on Operating Environment and Future Outlook - Management believes that the current moment presents a unique opportunity for growth in the education sector, driven by advancements in AI [41][42] - The company is optimistic about future initiatives, including improved video calls and expanded content for existing courses [22][23] Other Important Information - The company is not currently focused on optimizing costs, as the priority is to enhance user experience and engagement [73] - AI costs have decreased, allowing the company to invest in innovation while maintaining profitability [82] Q&A Session Summary Question: What are the underlying drivers of DAU growth into Q4? - The company reported a 36% year-over-year growth for Q3, with positive impacts from partnerships and product improvements, although some social media strategies temporarily affected growth [8][11] Question: Can you elaborate on the decision to shift investments towards long-term growth? - The company sees a significant opportunity in AI and education, leading to a strategic focus on teaching efficacy and user growth, which may have a lag in monetization [12][16] Question: How is the new chess course performing? - The chess course is growing rapidly, with higher retention rates compared to language courses, and player versus player features are being rolled out [30][31] Question: What is the impact of price increases on user growth? - The company is testing various pricing strategies, including potential discounts, while focusing on user growth over immediate monetization [86][90] Question: How is the company addressing advanced English learners? - The company has made significant improvements in teaching English, with a steady increase in advanced English learners, particularly in fast-growing regions like Asia [118][120] Question: What is the status of the family plan? - The family plan has grown to about 29% of subscribers and is expected to continue growing, especially during promotional periods [122]