Core Viewpoint - Duolingo (DUOL) is considered mispriced due to market overreactions to slowing user growth and fears of AI competition, while the company's engagement durability, new non-language vertical opportunities, and data advantage are undervalued [1] Group 1 - The company has experienced a 65% decline in stock price [1] - The analyst emphasizes a focus on long-term investment opportunities based on fundamentals [1] - Extensive research has been conducted on various industries, including energy, technology, and homebuilding, indicating a broad analytical perspective [1] Group 2 - The analyst encourages discussions with other analysts, especially when differing views are held, to enhance the investment thesis [1]

Core Viewpoint - 17EdTech is conducting its Third Quarter 2025 Earnings Conference Call to discuss its latest business performance and financial results [1][2]. Group 1: Business Performance - The conference call features Ms. Sishi Zhou, the acting Chief Financial Officer, who will present the latest business performance and strategies [2]. - The earnings release was made available on the company's Investor Relations website prior to the call [2]. Group 2: Financial Performance - Lara Zhao, the Investor Relations Manager, will provide detailed insights into the company's financial performance during the call [2]. - A Q&A session will follow the prepared remarks, allowing stakeholders to ask questions regarding the company's performance [2].

Financial Data and Key Metrics Changes - In Q3 2025, the company recorded net revenues of CNY 20 million, a 66.4% decrease from CNY 59.6 million in Q3 2024, primarily due to reduced revenues from district-level projects as resources were redirected to school-based subscription models [11] - Cost of revenue for Q3 2025 was CNY 9.8 million, a 58.1% decrease from CNY 23.3 million in Q3 2024, aligning with the decrease in net revenues [11] - Gross profit for Q3 2025 was CNY 10.2 million, down from CNY 36.3 million in Q3 2024, with a gross margin of 51.2%, compared to 60.9% in the previous year [12][13] - Total operating expenses for Q3 2025 were CNY 56.9 million, a slight decrease of 1.9% from CNY 58.0 million in Q3 2024 [13] - Net loss for Q3 2025 was CNY 44.5 million, compared to a net loss of CNY 17.4 million in Q3 2024, with net loss as a percentage of net revenues at negative 222.5% [15] Business Line Data and Key Metrics Changes - The school-based subscription business achieved a double-digit year-over-year increase, indicating strong performance and upselling opportunities for additional value-added services [5] - The company has focused on operational efficiency and resource investment, achieving a 29.8% reduction in operating expenses while narrowing losses by 21.5% in the first nine months [4] Market Data and Key Metrics Changes - The Chinese government is actively promoting the integration of AI in various sectors, including education, which aligns with the company's long-term vision and investment strategy in AI transformation [6] - The launch of the new AI product, 17Xue, has received positive market feedback, indicating robust user demand and market recognition of its value [9] Company Strategy and Development Direction - The company is committed to aligning with national strategies such as the AI+ Education Initiative, focusing on integrating intelligent learning components into the education process [3] - The successful launch of the 17Xue product marks a significant milestone in the company's AI transformation, aimed at enhancing product capabilities and improving customer learning experiences [5] - Future strategies include expanding the teaching and learning product portfolio while balancing financial sustainability and innovation investment [5][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive market response to new products, which is expected to enhance future cash flow [5] - The company aims to foster synergies across business lines to deepen customer engagement and strengthen the subscription model's strategic value [17] Other Important Information - As of September 30, 2025, the company held cash reserves of CNY 341.9 million, down from CNY 359.3 million at the end of 2024 [16] - The company is focused on delivering user-centric educational solutions through upgraded AI capabilities [16] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator indicated that there were no questions from attendees, and the call concluded with closing remarks from the management team [18][19]

Financial Data and Key Metrics Changes - In Q3 2025, the company recorded net revenues of CNY 20 million, a 66.4% decrease from CNY 59.6 million in Q3 2024, primarily due to reduced revenues from district-level projects as resources were redirected to school-based projects under a subscription model [12] - Cost of revenue for Q3 2025 was CNY 9.8 million, a 58.1% decrease from CNY 23.3 million in Q3 2024, aligning with the decrease in net revenues [12] - Gross profit for Q3 2025 was CNY 10.2 million, down from CNY 36.3 million in Q3 2024, with a gross margin of 51.2%, compared to 60.9% in the previous year [12][13] - Total operating expenses for Q3 2025 were CNY 56.9 million, a slight decrease of 1.9% from CNY 58.0 million in Q3 2024 [13] - Net loss for Q3 2025 was CNY 44.5 million, compared to a net loss of CNY 17.4 million in Q3 2024, with net loss as a percentage of net revenues at negative 222.5% [16] Business Line Data and Key Metrics Changes - The school-based subscription business achieved a double-digit year-over-year increase, indicating strong performance and upselling opportunities for additional value-added services [5][6] - The company has focused on operational efficiency and resource investment, achieving a 29.8% reduction in operating expenses and narrowing net losses by 21.5% in the first nine months of 2025 [4] Market Data and Key Metrics Changes - The Chinese government is actively promoting the integration of AI in education, with a joint policy from nine ministries emphasizing AI's role in optimizing teaching and learning processes [6][7] - The successful launch of the new CEN product, 17Xue, has received positive market feedback, indicating solid growth prospects [4][10] Company Strategy and Development Direction - The company is committed to aligning with national strategies such as the AI+ Education Initiative, focusing on integrating intelligent learning components into the education process [3][7] - Future strategies include expanding the teaching and learning product portfolio while balancing financial sustainability and innovation investment [5][18] - The company aims to foster synergies across business lines to deepen customer engagement and strengthen the subscription model's strategic value [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term vision aligned with national AI initiatives, reinforcing the commitment to enhance AI capabilities across the product portfolio [7][8] - The company anticipates that the favorable market response to new products will boost future cash flow, with cash reserves of CNY 341.9 million as of September 30, 2025 [5][17] Other Important Information - The company has successfully launched the 17Xue AI-powered precision learning product, which integrates smart hardware and advanced AI capabilities to provide personalized learning experiences [8][10] - The product has received encouraging market feedback and robust user demand, laying a solid foundation for future growth [10] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator indicated that there were no questions from attendees, and the call was concluded without further inquiries [19][20]

解题，一直是教育领域最刚需的场景之一，在 AI 时代也是如此。 皮尤研究中心在今年 1 月发布的一项研究数据显示，在美国约 26% 的 13-17 岁青少年会使用 ChatGPT 完成家庭作业，这一比例是 2023 年的 2 倍。而在通用型 AI 助手之外，也有大量专门的解题应用供学生选择，比如国内「作业帮」月活已经接近亿级，海外也有「Photomath」、 「Gauth」在内的一批成熟产品。 预期中，解题 App 已经"触手可得"，不会给硬件产品留下太多空间，但国内海外的实际情况似乎都并非如此，而原因截然不同。 今年 2 月头部品牌网易有道推出了有道 AI 答疑笔，媒体报道这款产品一上市便一度售罄，半年后网易有道又官宣了升级版本有道 AI 答疑笔 Space X，售 价高达 1499 元却销量很好，目前仅京东渠道这款产品的销量就已经突破 20 万，类似产品在各大电商渠道还有不少，又一次验证了国内家长对于独立于手 机的学习工具的强劲付费意愿。 在海外，一款功能类似的设备在 TikTok 上走红，它被称之为"应对纸笔考试的作弊神器"。此前不少海外学校为应对学生过度依赖 AI，重新将纸笔考试引 入课堂，当手机里的 ...

Duolingo ( DUOL ) is quietly becoming one of the most profitable consumer apps in the market. With nearly 72% gross margins and a stunning 40% net income margin, the company converts revenue into earnings far more efficiently than peers. Its strong cash flow, overHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with ...

Core Insights - The analysis of Duolingo (DUOL) indicates a mixed outlook, with AI presenting both long-term risks and short-term benefits [1] Group 1: Company Analysis - The initial assessment of Duolingo was in July 2024, categorizing it as a hold due to concerns about AI's impact [1] - The analyst emphasizes a fundamental approach to investment, focusing on identifying undervalued stocks with growth potential [1] Group 2: Market Context - The analyst has experience covering both Brazilian and global stocks, suggesting a broad understanding of market dynamics [1]

Duolingo ( DUOL ) entered the year as one of the biggest winners post-pandemic as well as of the rise of AI. The stock’s fall from grace has removed a lot of that luster, and management has more or less signaled continued pressuresJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is the leader of the investing group B ...

Sands Capital, an investment management company, released its Q3 2025 investor letter for the “Sands Capital Technology Innovators Fund.” A copy of the letter can be downloaded here. Technology Innovators focus on pioneering businesses worldwide that serve as key drivers or beneficiaries of significant, long-term technological changes. The fund returned 8.4% (net) in the third quarter compared to a 12.5% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Despite concentrated lea ...

Core Insights - iHuman Inc. will present at NobleCon21 on December 3rd, 2025, showcasing its tech-powered intellectual development products aimed at enhancing child upbringing experiences for parents and children [1][2]. Company Overview - iHuman Inc. is a leading provider of tech-powered intellectual development products in China, focusing on making child upbringing easier for parents and transforming intellectual development into an enjoyable journey for children [3]. - The company has nearly three decades of experience in the parenthood industry, combining superior original content, advanced technology, and research capabilities to empower parents [3]. - iHuman offers a comprehensive suite of innovative products, including self-directed apps, interactive content, and smart devices, aimed at developing children's abilities in speaking, critical thinking, independent reading, and creativity [3]. - The company leverages advanced technologies such as 3D engines, AI/AR functionality, and big data analysis to enhance the experience for both parents and children [3]. Event Details - Interested investors can attend the presentation at a discounted rate using the code [IHNOBLECON], and a high-definition video webcast will be available the following day on Noble Capital Markets' website and Channelchek [2].