Duolingo(US:DUOL)2023-08-08 16:00Financial Performance - Revenues for Q2 2023 reached $126.839 million, a 43.4% increase from $88.386 million in Q2 2022[22] - Gross profit for Q2 2023 was $93.051 million, compared to $64.517 million in Q2 2022, reflecting a gross margin improvement[22] - The company reported a net income of $3.725 million for Q2 2023, a significant improvement from a net loss of $15.045 million in Q2 2022[22] - Total revenues for the three months ended June 30, 2023, were $126,839,000, a 43.4% increase from $88,386,000 in the same period of 2022[64] - For the six months ended June 30, 2023, total revenues were $242.5 million, a 43% increase from $169.6 million in the same period of 2022[130] - Adjusted EBITDA for Q2 2023 was $20.871 million, significantly higher than $4.198 million in Q2 2022[105] - Net income for the three months ended June 30, 2023, was $3.7 million, compared to a net loss of $15.0 million in the same period of 2022[122] - Free cash flow for Q2 2023 was $34.340 million, up from $9.880 million in Q2 2022[105] User Metrics - The total number of monthly active users (MAUs) and daily active users (DAUs) is a key operating metric, although specific numbers were not disclosed in the provided content[15] - The company reported 74.1 million monthly active users (MAUs) for the three months ended June 30, 2023, up 50% from 49.5 million MAUs in the same period of 2022[102][107] - Daily active users (DAUs) increased to 21.4 million in Q2 2023, compared to 13.2 million in Q2 2022[105] - Paid subscribers reached 5.2 million at the end of Q2 2023, up from 3.3 million in Q2 2022[105] Revenue Streams - Subscription revenue for the first half of 2023 reached $181,343,000, up 47.1% from $123,204,000 in the first half of 2022[64] - The Duolingo English Test revenue for the first half of 2023 was $19,781,000, compared to $16,116,000 in the same period of 2022, reflecting a 22.0% growth[64] - Subscription bookings for Q2 2023 were $106.254 million, a 43% increase from $74.123 million in Q2 2022[105] - Total bookings for Q2 2023 were $137.539 million, compared to $97.467 million in Q2 2022, reflecting a 41% growth[105] - Subscription revenues totaled $95.2 million for the three months ended June 30, 2023, representing a 46% increase from $65.2 million in the prior year[129] Expenses - Operating expenses increased to $97.916 million in Q2 2023 from $79.551 million in Q2 2022, driven by higher research and development costs[22] - Research and development expenses increased by 40% to $47.9 million for the three months ended June 30, 2023, compared to $34.2 million in the same period of 2022[143] - Sales and marketing expenses increased by $2.5 million (16%) to $17.7 million for the three months ended June 30, 2023, and by $4.1 million (14%) to $34.3 million for the six months ended June 30, 2023[151][152] Cash and Assets - The total assets as of June 30, 2023, were $834.803 million, up from $747.347 million as of December 31, 2022[21] - The company has a cash and cash equivalents balance of $678.665 million as of June 30, 2023, an increase from $608.180 million at the end of 2022[21] - Cash provided by operating activities increased by $33.5 million (101%) to $66.8 million for the six months ended June 30, 2023, driven by net income generation and increased non-cash stock-based compensation[163] Deferred Revenue - Deferred revenues increased to $192.753 million as of June 30, 2023, compared to $157.550 million at the end of 2022, indicating growth in subscription bookings[21] - Deferred revenue as of June 30, 2023, was $192,753,000, an increase from $128,194,000 at the end of June 2022[65] Competitive Landscape - The company continues to face competitive pressures in the online language learning industry, which may impact user retention and engagement[18] Stock-Based Compensation - Stock-based compensation expense for the six months ended June 30, 2023, was $44,787,000, compared to $32,700,000 for the same period in 2022, reflecting an increase of approximately 37%[30] - The company recognized $23.714 million in total stock-based compensation expense for the three months ended June 30, 2023, compared to $18.114 million for the same period in 2022[85]