Duolingo Achieves 54% DAU growth and 40% Revenue Growth in Third Quarter 2024

Financial Performance - Total bookings for Q3 2024 were $211.5 million, a 38% increase YoY, with subscription bookings at $176.3 million, up 45% YoY [3][4] - Paid subscribers reached 8.6 million, a 47% increase YoY, while DAUs grew to 37.2 million, up 54% YoY, and MAUs reached 113.1 million, up 36% YoY [3][4] - Total revenues for Q3 2024 were $192.6 million, a 40% increase YoY, with subscription revenue contributing $157.6 million, up 49% YoY [3][5] - Net income for Q3 2024 was $23.4 million, compared to $2.8 million in the prior year quarter, while Adjusted EBITDA was $47.5 million, up from $22.5 million YoY [3][4] Operational Highlights - The company achieved strong growth in new and returning users, with the highest-ever family plan penetration and significant contributions from Duolingo Max [2][3] - The AI-powered Video Call feature drove adoption of Duolingo Max and increased conversational speaking practice, unlocking new opportunities in the global language learning market [3] - Free cash flow for Q3 2024 was $52.7 million, a 57% increase YoY, while net cash provided by operating activities was $56.3 million, up 49% YoY [3][4] Financial Outlook - For Q4 2024, the company expects total bookings between $244.5 million and $247.5 million, with revenues projected between $202.5 million and $205.5 million [6] - Full-year 2024 guidance includes total bookings of $843.5 million to $846.5 million and revenues of $741.0 million to $744.0 million [6] - Adjusted EBITDA for Q4 2024 is expected to be between $48.6 million and $50.8 million, with a margin of 24.0% to 24.7% [6] Market Position and Strategy - Duolingo is the leading mobile learning platform globally, with its flagship app being the most popular way to learn languages and the top-grossing app in the Education category on Google Play and the Apple App Store [10] - The company continues to invest in technology to provide a fun, engaging, and effective learning experience, while remaining committed to its mission of making the best education universally available [10]