Duolingo(DUOL) - 2024 Q4 - Annual Results

User Engagement Metrics - Daily Active Users (DAUs) increased to 40.5 million in Q4 2024, a 51% year-over-year growth[4] - Monthly Active Users (MAUs) reached 116.7 million, reflecting a 32% year-over-year increase[4] - Monthly Active Users (MAUs) and Daily Active Users (DAUs) are key metrics for measuring user engagement, with MAUs defined as unique users engaging monthly[57][58] Financial Performance - Total revenue for Q4 2024 was $209.6 million, up 39% year-over-year, while FY 2024 revenue was$ 748.0 million, a 41% increase[4] - Net income for Q4 2024 was $13.9 million, compared to$ 12.1 million in Q4 2023, marking a 15% increase[4] - Adjusted EBITDA for Q4 2024 was $52.3 million, a 49% increase year-over-year, with a margin of 25.0%[4] - Total bookings in Q4 2024 reached$ 271.6 million, a 42% increase year-over-year, driven by a 50% rise in subscription bookings[4] - Free cash flow for Q4 2024 was $87.8 million, an 84% increase year-over-year[4] - Revenues for Q4 2024 reached$ 209,550, a 38.7% increase from $150,985 in Q4 2023[69] - Net income for Q4 2024 was$ 13,907, compared to $12,117 in Q4 2023, reflecting a 14.8% growth[69] - Free cash flow for 2024 was$ 274,937, up from $144,273 in 2023, representing an increase of 90.5%[81] Subscriber Growth - Paid subscribers grew to 9.5 million at the end of Q4 2024, a 43% increase from the previous year[4] - The introduction of Duolingo Max contributed to significant user growth and accounted for 5% of paid subscribers by year-end[4] Future Projections - For Q1 2025, the company expects bookings between$ 252 million and $255 million, representing a year-over-year growth of 27.6% to 29.2%[49] - For FY 2025, the company projects revenues between$ 962.5 million and $978.5 million, with a year-over-year growth of 28.7% to 30.8%[49] - On a constant currency basis, FY 2025 bookings growth is estimated at 26.2% to 28.1% and revenue growth at 30.1% to 32.2%[50] Expense Management - In Q4, GAAP R&D expense decreased from 33% to 32% of revenue year over year, and in FY 2024, it decreased from 37% to 31% of revenue[42] - In Q4, GAAP S&M expense decreased from 13% to 12% of revenue year over year, and in FY 2024, it decreased from 14% to 12%[43] - In Q4, GAAP G&A expense decreased from 24% to 22% of revenue year over year, and in FY 2024, it decreased from 25% to 21%[44] Adjusted EBITDA - Adjusted EBITDA in Q4 increased by$ 17.1 million year over year to $52.3 million, representing a 25.0% margin; for FY 2024, it increased by$ 98.3 million to $191.9 million, with a 25.7% margin[46] - The adjusted EBITDA margin improved from 23.3% in Q4 2023 to 25.0% in Q4 2024[75] Assets and Liabilities - Total assets increased from$ 953,957 in 2023 to $1,301,728 in 2024, marking a 36.4% rise[68] - Cash and cash equivalents rose from$ 747,610 in 2023 to $785,791 in 2024, an increase of 5.5%[68] - The company reported total liabilities of$ 477,178 in 2024, up from $298,456 in 2023, a 60.0% increase[68] - Deferred revenues increased from$ 249,192 in 2023 to $372,884 in 2024, a growth of 49.7%[68] Research and Development - Research and development expenses for 2024 totaled$ 235,298, up from $194,352 in 2023, a 21.1% increase[77]