Duolingo(DUOL) - 2024 Q2 - Quarterly Results

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]