Financial Data and Key Metrics Changes - In 2023, the company achieved a record user growth, bookings, revenue, profitability, and free cash flow in Q4, surpassing ambitious expectations set at the beginning of the year [6][11] - Bookings and revenue growth for the year were 51% and 45% year-over-year, respectively, or 49% and 43% on a constant currency basis [12][14] - Adjusted EBITDA margin increased by over 13 points to over 17% in 2023, with expectations to reach 22.5% at the midpoint in 2024 [7][14] Business Line Data and Key Metrics Changes - The family plan now constitutes about 18% of the subscriber base and has shown higher retention rates compared to other plans [9][20] - The company reached a milestone of 100 billion lessons completed by learners, holding a 90% share of global online language learning monthly active users (MAUs) [10] Market Data and Key Metrics Changes - The company has added approximately 18 million daily active users and over 50 million monthly active users since its IPO, primarily through word of mouth [8] - The company noted strong growth in international markets, particularly in Southeast Asia and Japan, with robust growth in European countries as well [99] Company Strategy and Development Direction - The company plans to continue investing in R&D as a growth lever, focusing on making the app more engaging and effective [15][37] - Strategic investments will be made to drive long-term growth, particularly in advanced content for English learners and expanding math and music courses [32][58] - The company aims to enhance its marketing strategy to capitalize on cultural moments and viral marketing opportunities [119] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining user growth, projecting mid-50s percentage growth for Q1 2024, despite the large user base [144] - The company is optimistic about the potential for further growth in the language learning market, with a total addressable market of about two billion people [72] Other Important Information - The company plans to experiment with pricing strategies, particularly for its MAX offering, and will continue to optimize the lifetime value (LTV) of its platform [44][141] - The company ended 2023 with approximately 49 million fully diluted shares outstanding and expects about 1% net dilution from equity issued to employees in 2024 [39] Q&A Session Summary Question: Can you elaborate on the family plan retention rate? - The family plan has a materially higher retention rate compared to the annual plan, contributing to a higher lifetime value (LTV) product [20] Question: What is the outlook for in-app purchases and other revenue lines? - Ad revenue is expected to grow slower than subscriptions, with a similar growth delta anticipated for 2024 [45] Question: How does the company view the impact of AI on operations? - AI is being leveraged for content creation and feature generation, allowing for faster experimentation and cost reductions [52][75] Question: What are the expectations for user growth in 2024? - The company expects user growth to remain strong, driven primarily by product improvements and word of mouth [71] Question: Can you provide insights on the performance of math and music courses? - While these courses are smaller than language learning, they are showing promising early results and are expected to grow over time [90][116]

Duolingo, Inc. (DUOL) reported $150.99 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 45.4%. EPS of $0.26 for the same period compares to -$0.35 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $146.98 million, representing a surprise of +2.73%. The company delivered an EPS surprise of +23.81%, with the consensus EPS estimate being $0.21.While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Duolingo, Inc. (DUOL) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to loss of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.81%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced earnings of $0.06, delivering a surprise of 200%.Over the last four quarters, the company has surpa ...

PITTSBURGH, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Duolingo, Inc. (NASDAQ:DUOL), the world's leading mobile learning platform, announced results for the fourth quarter and full year ended December 31, 2023 in a shareholder letter that is posted at investors.duolingo.com. "2023 was an exceptional year that exceeded our own high expectations. It was capped off with a very strong Q4 that saw us achieve record bookings, revenue and profitability," said Luis von Ahn, Co-Founder and CEO of Duolingo. "We accelerated DA ...

User Growth and Engagement - As of December 31, 2023, Duolingo has over 85 million monthly active users, with approximately 8% being paid subscribers[32][36] - Duolingo's users complete over a billion exercises daily, contributing to what is believed to be the world's largest learning dataset[35] - The Duolingo platform has approximately 20 million daily active users with a 7-day streak or longer, and about 5 million daily active users with a 365-day streak or longer[42] - Duolingo's brand has become part of pop culture, with significant social media presence, including over four billion views for duolingo on TikTok[34] - The company emphasizes a strong future roadmap for feature improvements and optimizations to enhance user experience and engagement[36] Revenue and Financial Performance - Revenues for the year ended December 31, 2023, were $531.1 million, a 43.7% increase from $369.5 million in 2022[416] - Subscription revenue grew to $404.7 million in 2023, up 48.0% from $273.5 million in 2022[490] - The Duolingo English Test revenue increased to $41.2 million in 2023, representing a 26.0% rise from $32.7 million in 2022[490] - The company reported a net income of $16.1 million for 2023, compared to a net loss of $59.6 million in 2022[416] - Operating cash flow increased significantly to $153,614 in 2023, up from $53,656 in 2022[424] Business Model and Market Position - Duolingo's freemium business model allows users to access content for free, with monetization through subscriptions for additional features[37] - The online language learning market is projected to reach about $115 billion by 2025, with significant growth expected in online learning[31] - The company is experiencing a growing adoption of subscription models globally, which is enhancing the shift towards mobile experiences in online learning[64] - The company believes that the shift towards online learning, accelerated by the COVID-19 pandemic, will have enduring effects on consumer behavior[64] Product Offerings and Innovations - The Duolingo English Test, launched in 2016, serves millions annually for various purposes, including university admissions and job applications[38] - In 2023, Duolingo launched Duolingo Max, a premium subscription tier that includes features powered by generative AI technology[48] - Duolingo's Math and Music courses were integrated into the Duolingo App as of November 2023, expanding the platform's educational offerings[46] - The company utilizes advanced data analytics and machine learning to optimize the learning experience, adapting lessons to individual learner needs[49] Financial Position and Assets - The company had $697.2 million in cash equivalents invested in money market funds as of December 31, 2023, held for working capital and future investments[390] - Total assets as of December 31, 2023, were $953.96 million, an increase from $747.35 million in 2022[414] - The company’s cash and cash equivalents rose to $747.61 million as of December 31, 2023, up from $608.18 million in 2022[414] - Deferred revenue at the end of 2023 was $249.2 million, up from $157.6 million at the end of 2022, indicating strong prepayments for subscriptions[492] Expenses and Investments - Research and development expenses increased to $194.4 million in 2023, up from $150.4 million in 2022, reflecting a 29.2% year-over-year growth[416] - The company capitalized $10.4 million in software development costs during the year ended December 31, 2023, bringing total capitalized software development costs to $26.9 million[402] - Stock-based compensation expense increased to $95,221 in 2023 from $73,820 in 2022, reflecting higher employee incentives[424] Risks and Compliance - The company relies on third-party platforms for product distribution and payment collection, which poses risks to its business operations[25] - The company is subject to various evolving data protection and privacy regulations, including GDPR in the EEA and U.K., which impose strict compliance requirements[72] - The company has not entered into any hedging arrangements for foreign currency risk, which may affect its operating results due to fluctuations in exchange rates[391] Corporate Structure and Governance - Duolingo's dual class stock structure concentrates voting control, limiting influence on corporate matters for other shareholders[24] - The company maintains effective internal control over financial reporting as of December 31, 2023, according to the auditor's opinion[406] - The company is committed to protecting its intellectual property through trademarks, copyrights, and confidentiality agreements with employees and partners[66]

shareholder letter Q4 / FY 2023 our mission is to develop the best education in the world and make it universally available. DUOLINGO Q4 / FY 2023 2 Q4 and FY23 Highlights | User Metrics | Q4 2022 | Q4 2023 | | --- | --- | --- | | Daily Active Users | 16.3M | 26.9M | | | | 65% YoY | | Monthly Active Users | 60.7M | 88.4M | | | | 46% YoY | | Paid Subscribers | 4.2M | 6.6M | | at period end | | 57% YoY | | Paid Subscriber Penetration | 7.8% | 8.3% | | as % of MAU* | | | | Financial Metrics | Q4 2023 | FY 2023 ...

Wall Street analysts forecast that Duolingo, Inc. (DUOL) will report quarterly earnings of $0.17 per share in its upcoming release, pointing to a year-over-year increase of 148.6%. It is anticipated that revenues will amount to $146.95 million, exhibiting an increase of 41.6% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during th ...

The artificial intelligence rally has carried into 2024 after a strong showing in 2023. Many corporations have rushed to launch AI initiatives, and any mention of the technology can send a stock soaring.While some stocks deeply ingrained with the technology have taken off, there are a few under-the-radar stocks also poised to benefit from artificial intelligence. AI doesn’t make up the entirety of these firms’ business models. However, innovations in technology can help these assets appreciate over time.Inv ...

Stock prices go up, and stock prices go down. Tell me you found a stock that always goes in one direction, without even the slightest bump along the way, and I'll politely decline buying that cool bridge you have for sale. It just doesn't work that way. But in the long run, good businesses almost inevitably deliver strong stock returns while the lesser lights fade out.Wall Street is always a bumpy road, and the temporary downticks for potential long-term winners can be great buy-in opportunities. That's wha ...

Editor's note: Seeking Alpha is proud to welcome Titan Trend Analytics as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Duolingo Headquarters in Pittsburgh bgwalker Introduction Duolingo (NASDAQ:DUOL), was founded in 2011 by Carnegie Mellon University students, Severin Hacker and Luis von Ah. As US immigrants from a different world and culture, they both u ...