Duolingo(US:DUOL) INDUSTRIAL SECURITIES·2024-08-11 14:18Investment Rating - The report does not provide a specific investment rating for the company [16]. Core Insights - The company has achieved significant quarterly performance exceeding expectations, with a notable increase in user engagement and revenue growth [2][12]. - The utilization of new technologies is expected to enhance product experience and user activity, leading to increased willingness to pay and continuous growth [2][12]. - The company is effectively managing costs, resulting in improved profitability metrics [4][9]. Financial Performance Summary - In Q2 2024, the company reported a net revenue of $178 million, representing a year-over-year growth of 41%, with subscription revenue contributing $144 million, up 51% [6][12]. - The operating cash flow for Q2 2024 was $62.4 million, reflecting a 68% increase year-over-year, while cash revenue reached $190 million, a 38% increase [6][12]. - The adjusted EBITDA for Q2 2024 was $48.1 million, with an adjusted EBITDA margin of 27%, marking a 10.5 percentage point increase year-over-year [4][9]. User Metrics Summary - The company's Monthly Active Users (MAU) surpassed 100 million for the first time, reaching 104 million, with Daily Active Users (DAU) at 34.1 million, showing year-over-year growth of 40% and 59% respectively [12]. - The number of paying users increased to 8 million, a 52% year-over-year growth, with a payment rate of 8.6%, up 0.7 percentage points from the previous year [12]. Future Guidance - For Q3 2024, the company anticipates cash revenue between $194.5 million and $197.5 million, and net revenue between $186.7 million and $189.7 million, indicating a year-over-year growth of 36-38% [14]. - The full-year 2024 projections estimate cash revenue of $820.5 million to $827.5 million, and net revenue of $731.3 million to $738.3 million, with expected growth rates of 38-39% [14].