Duolingo(DUOL)2025-05-01 20:02User Growth - Daily Active Users (DAUs) increased to 46.6 million, a 49% year-over-year growth, while Monthly Active Users (MAUs) reached 130.2 million, up 33% year-over-year[4][11]. - Daily Active Users (DAUs) are projected to grow in the range of 40% to 45% for Q2 2025[45]. Financial Performance - Total revenue for Q1 2025 was 191.0 million[11][31][33]. - Net income rose to 27.0 million in Q1 2024[11][41]. - Adjusted EBITDA increased to 167,553,000 in Q1 2024 to 164,096,000 in Q1 2025, up 34.1% from 26,956,000 in Q1 2024 to 62,804,000 in Q1 2025, compared to 103,012,000 in Q1 2025, up 31.2% from 271.6 million, a 38% increase year-over-year, driven by a 44% rise in subscription bookings[11][31]. - The company is raising its full-year bookings guidance to a midpoint of 29% year-over-year growth[6]. - Duolingo expects Q2 2025 bookings to be between 246.5 million, representing a year-over-year growth of 28.1% to 29.7%[43]. - For FY 2025, Duolingo projects total bookings of 1,126.5 million, with a year-over-year growth of 28.4% to 29.4%[43]. Revenue and EBITDA Projections - Revenue guidance for Q2 2025 is set at 241.5 million, indicating a year-over-year growth of 33.7% to 35.4%[43]. - The company anticipates FY 2025 revenues to range from 996 million, reflecting a year-over-year growth of 31.9% to 33.2%[43]. - Adjusted EBITDA for Q2 2025 is expected to be between 61.6 million, with an adjusted EBITDA margin of 24.5% to 25.5%[43][47]. - Duolingo is raising its full-year Adjusted EBITDA margin guidance to 28% at the midpoint, representing a 230 basis point expansion over the previous year[47]. - Duolingo anticipates a sequential Adjusted EBITDA margin expansion of about 200 basis points in Q3 2025, with further improvements expected in Q4[48]. Operational Metrics - Operating cash flow increased to 83.5 million in the prior year[11][41]. - Operating expenses increased by 32.6% to 105,923,000 in Q1 2024[65]. - The adjusted EBITDA margin improved slightly from 26.3% in Q1 2024 to 27.2% in Q1 2025[70]. Assets and Equity - Total assets increased from 1,403,146,000 in March 2025[64]. - Total stockholders' equity rose to 824,550,000 in December 2024[64]. - Cash and cash equivalents increased from 883,996,000 in March 2025[64]. Subscriber Growth - Paid subscribers reached 10.3 million, marking a 40% increase from the previous year[11][31]. Product Development - A new Chess course will be launched, expanding the learning content beyond language[12][15]. - The Duolingo Max subscription tier is seeing increased adoption, with enhancements like 3D interactions and new features planned for the coming months[16][17]. Share Count - The fully diluted share count is expected to increase by about 1% in 2025[49]. Margin Expectations - The company expects a year-over-year decline in gross margin of approximately 150 basis points for FY 2025, an improvement from previous guidance[46].