The backlash against Duolingo going ‘AI-first' didn't even matter

Core Insights - Duolingo reported quarterly revenue that exceeded estimates, resulting in a nearly 30% increase in stock price [1] - The company is transitioning to an "AI-first" model, significantly increasing its language course offerings [2] - Financial metrics indicate a projected revenue of over $1 billion for the year, with a 40% year-over-year growth in daily active users [3] Company Strategy - CEO Luis von Ahn announced a shift towards generative AI, phasing out contract workers and limiting new hires unless automation is not feasible [2] - The introduction of 148 new language courses has more than doubled the previous offerings, showcasing the impact of AI on content scaling [2][3] Public Sentiment and Financial Performance - Despite some backlash regarding the AI approach, the company's financial performance remains strong, with a focus on improving social media sentiment [4] - The growth in daily active users, while significant, is at the lower end of the company's estimated growth range of 40-45% [3]