Duolingo, Inc. (DUOL) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 54.55%. A quarter ago, it was expected that this company would post earnings of $0.30 per share when it actually produced earnings of $0.57, delivering a surprise of 90%. Over the last four quarters, the company ha ...

Financial Performance - Total revenues for Q2 2024 reached $178.3 million, a 40.6% increase from $126.8 million in Q2 2023[22] - Gross profit for Q2 2024 was $131.0 million, up 40.5% from $93.1 million in Q2 2023[22] - Net income for Q2 2024 was $24.4 million, compared to $3.7 million in Q2 2023, representing a significant increase[22] - Total revenues for the three months ended June 30, 2024, were $178,327,000, representing a 40.6% increase from $126,839,000 in the same period of 2023[53] - Subscription revenue for the six months ended June 30, 2024, was $275,597,000, up 52.0% from $181,343,000 in the prior year[53] - Net income for the three months ended June 30, 2024, was $24.4 million, compared to $3.7 million in the same period of 2023[113] - Adjusted EBITDA for the three months ended June 30, 2024, was $48.1 million, significantly up from $20.9 million in the prior year[111] - Free cash flow for the six months ended June 30, 2024, was $134.5 million, compared to $63.1 million in the same period of 2023[100] Assets and Cash Flow - Cash and cash equivalents increased to $888.2 million as of June 30, 2024, up from $747.6 million at the end of 2023[20] - Total assets grew to $1.14 billion as of June 30, 2024, compared to $954.0 million at the end of 2023[20] - The company reported a net cash provided by operating activities of $145.9 million for the first half of 2024, significantly higher than $66.8 million in the same period of 2023[28] - Cash provided by operating activities increased by $79.1 million, or 119%, to $145.9 million for the six months ended June 30, 2024, compared to $66.8 million for the same period in 2023[155] - Cash used for investing activities increased by $9.0 million, or 192%, to $13.7 million for the six months ended June 30, 2024, from $4.7 million for the same period in 2023[156] Expenses - Operating expenses for Q2 2024 totaled $112.3 million, a 14.7% increase from $97.9 million in Q2 2023[22] - Research and development expenses for Q2 2024 were $55.1 million, compared to $47.9 million in Q2 2023, reflecting ongoing investment in new technologies[22] - Total operating expenses increased by $609,000, or 37%, to $2,243,000 for the three months ended June 30, 2024, compared to $1,634,000 for the same period in 2023[136] - General and administrative expenses increased by $4.7 million, or 15%, to $37.0 million for the three months ended June 30, 2024, mainly due to increased personnel costs and travel expenses[146] User Metrics - For the three months ended June 30, 2024, the company reported approximately 103.6 million monthly active users (MAUs), a 40% increase from 74.1 million MAUs in the same period of 2023[101] - Daily active users (DAUs) reached approximately 34.1 million for the three months ended June 30, 2024, representing a 59% increase from 21.4 million DAUs in the prior year[102] - The company had approximately 8.0 million paid subscribers as of June 30, 2024, up 52% from 5.2 million in the same period of 2023[103] Revenue Sources - Subscription bookings for the three months ended June 30, 2024, were $156.5 million, a 47% increase from $106.3 million in the prior year[105] - Total bookings for the same period were $190.1 million, reflecting a 38% increase from $137.5 million in the previous year[105] - The Duolingo English Test revenue for the three months ended June 30, 2024, was $10,698,000, up from $9,809,000 in the same period of 2023, a 9.0% increase[54] - In-app purchases revenue for the six months ended June 30, 2024, reached $20,100,000, compared to $16,527,000 in the same period of 2023, reflecting a 21.0% growth[54] Deferred Revenue - Deferred revenues increased to $291.5 million as of June 30, 2024, up from $249.2 million at the end of 2023[20] - Deferred revenue as of June 30, 2024, increased to $291,477,000 from $192,753,000 as of June 30, 2023, reflecting a 51.1% growth[56] - As of June 30, 2024, the company had deferred revenues of $291.5 million, expected to be recognized as revenue in the next 12 months[154] Market and Competition - The online language learning industry is highly competitive, with low switching costs and a consistent stream of new products and entrants[175] - Many competitors have greater financial and technical resources, which may allow them to offer more appealing products and respond more quickly to market changes[177] - The company faces competition from free online language-learning products and larger companies that can invest more in marketing and product development[179] Risks and Challenges - User engagement and conversion to paying subscribers are critical for the company's financial performance, with potential fluctuations in user base expected[172] - The company has not entered into any hedging arrangements for foreign currency risk, which may affect its financial results[162] - Inflationary pressures could adversely affect the company's results of operations if costs increase significantly[164] - The company acknowledges the potential for litigation or activism related to DEI initiatives, which could have adverse effects on its operations[220] Employee and Culture - The company has grown its employee headcount from approximately 140 to 720 from December 31, 2018, to June 30, 2024, indicating rapid expansion[184] - Intense competition for highly skilled employees in the industry may hinder the company's ability to attract and retain talent, impacting operational effectiveness[220] - The company's culture and core values are critical to fostering innovation and teamwork, which are essential for operational support[220]

User Engagement and Growth - Daily Active Users (DAUs) increased to 34.1 million, up 59% YoY[3][4] - Monthly Active Users (MAUs) reached 103.6 million, up 40% YoY[3][4] - Japan saw 93% DAU growth and 58% bookings growth YoY[6] - Daily Active Users (DAUs) averaged over the three months ended June 30, 2024, reflecting consistent global user engagement[26] Paid Subscribers and Bookings - Paid Subscribers totaled 8.0 million, up 52% YoY[3][4] - Total Bookings were $190.1 million, up 38% YoY[3][4] - Q3 2024 Bookings guidance is $194.5 million to $197.5 million, with YoY growth of 26.6% to 28.6%[20] - Paid subscribers are users with active subscriptions as of the end of the measurement period, excluding free trials and non-paying family plan members[26] - Subscription bookings represent amounts received from Duolingo subscription purchases, while total bookings include advertising income, Duolingo English Test purchases, and in-app virtual goods[27] Financial Performance - Total Revenue grew to $178.3 million, up 41% YoY[3][4] - Net Income increased to $24.4 million, compared to $3.7 million in the prior year quarter[3][4] - Adjusted EBITDA rose to $48.1 million, with a margin of 27.0%[3][4] - Revenues grew from $126.84 million in Q2 2023 to $178.33 million in Q2 2024[37] - Net income rose significantly from $3.73 million in Q2 2023 to $24.35 million in Q2 2024[37] - Adjusted EBITDA increased from $20.87 million in Q2 2023 to $48.12 million in Q2 2024, with the margin improving from 16.5% to 27.0%[41] Cash Flow and Liquidity - Cash and cash equivalents increased from $747.61 million in December 2023 to $888.24 million in June 2024[36] - Net cash provided by operating activities surged from $66.77 million in the first half of 2023 to $145.90 million in the first half of 2024[38] - Free cash flow improved from $34,340 thousand in Q2 2023 to $54,867 thousand in Q2 2024[49] - Free cash flow margin increased from 27.1% in Q2 2023 to 30.8% in Q2 2024[49] - Net cash provided by operating activities rose from $37,167 thousand in Q2 2023 to $62,388 thousand in Q2 2024[49] Expenses and Investments - Stock-based compensation expenses related to equity awards increased from $24.26 million in Q2 2023 to $27.54 million in Q2 2024[41] - Total GAAP Operating Expense increased from $97,916 thousand in Q2 2023 to $112,278 thousand in Q2 2024[43] - Non-GAAP R&D Expense rose from $36,219 thousand in Q2 2023 to $40,176 thousand in Q2 2024[44] - Non-GAAP S&M Expense grew from $16,473 thousand in Q2 2023 to $18,735 thousand in Q2 2024[45] - Non-GAAP G&A Expense increased from $19,636 thousand in Q2 2023 to $24,205 thousand in Q2 2024[46] - Capitalized software development costs and purchases of intangible assets increased from $2,544 thousand in Q2 2023 to $3,093 thousand in Q2 2024[49] - Purchases of property and equipment surged from $827 thousand in Q2 2023 to $5,563 thousand in Q2 2024[49] - Taxes paid related to stock-based compensation equity awards increased from $544 thousand in Q2 2023 to $798 thousand in Q2 2024[49] Product Expansion - Duolingo Max is now available in 5 courses and 27 countries, covering 15% of DAUs[9] Asset Growth - Total assets expanded from $953.96 million in December 2023 to $1.14 billion in June 2024[36]

PITTSBURGH, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Duolingo, Inc. (NASDAQ: DUOL), the world's leading mobile learning platform, announced results for the second quarter ended June 30, 2024 in a shareholder letter that is posted at investors.duolingo.com. "We achieved significant milestones in the second quarter, surpassing 100 million MAUs and reporting 8 million subscribers," said Luis von Ahn, Co-Founder and CEO of Duolingo. "Our user growth accelerated, and we saw record levels of engagement. Over 20% of our ...

PITTSBURGH, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Duolingo, Inc. (NASDAQ: DUOL), the world's leading mobile learning platform, announced results for the second quarter ended June 30, 2024 in a shareholder letter that is posted at investors.duolingo.com. "We achieved significant milestones in the second quarter, surpassing 100 million MAUs and reporting 8 million subscribers," said Luis von Ahn, Co-Founder and CEO of Duolingo. "Our user growth accelerated, and we saw record levels of engagement. Over 20% of our ...

Duolingo is a leading name in online language learning, but it's still a small company with big dreams -- how far can it go in the next five years? The language-learning company Duolingo (DUOL 1.41%) launched in 2012. Duolingo's mobile app is currently the third most popular app in the Apple App Store's education category, ahead of popular learning resources such as Instructure's Canvas platform and Alphabet's (GOOG 1.28%) (GOOGL 1.58%) Google Classroom. On Alphabet's Android Play Store, Duolingo sits at th ...

Duolingo, Inc. (DUOL) is scheduled to report its second-quarter 2024 results on Aug 7, after the bell. The Zacks Consensus Estimate for DUOL's bottom line in the to-be-reported quarter stands at 33 cents per share, indicating a 312.5% year-over-year improvement. The consensus estimate for revenues is pegged at $176.9 million, indicating a 39.5% increase from the year-ago reported figure. One estimate for the to-be- reported quarter's earnings moved north over the past 30 days versus no southward revisions. ...

Artur Duolingo, Inc. (NASDAQ:DUOL) has an interesting profile from a fundamentals perspective. On the one hand, it's a Top 10 performer in the Education Services sector within the broader Consumer Discretionary industry on the basis of its net income margin, and it's #1 in terms of revenue growth on a 3Y basis; but, on the other hand, its valuation seems to have run away from its fundamentals by a mile. In other words, that kind of performance is excellent, of course, but does it really justify a 9x forward ...

Hinterhaus Productions/DigitalVision via Getty Images Investment Thesis Last year, Duolingo's (NASDAQ:DUOL) stock outperformed the market and had a decent run. However, it has recently had a slight decline, falling 42% from its peak of $251. Stock performance (Seeking Alpha) Not-so-good news has been hitting the market lately. The unexpected increase in U.S. unemployment, the Bank of Japan's sudden boost in interest rates, and even Warren Buffett's sale of some Apple shares have all caused investors to get ...

stockcam Introduction & Investment Thesis Duolingo (NASDAQ:NASDAQ:DUOL) is a language learning app that expanded its offerings to Maths and Music in FY23. The company has been underperforming the S&P 500 and Nasdaq 100 YTD. I had last covered the stock on May 10 after its Q1 FY24 earnings report, where I held my "buy" rating as I believed that the stock offered an attractive entry point after it beat estimates for revenue and earnings growth. Unfortunately, since then, the stock has declined over 12%, under ...