Duolingo Reports Strong Fourth-Quarter Results, Shares Surge After Hours
Duolingo Inc (NASDAQ: DUOL) shares are trading higher in Wednesday’s after-hours session following the release of the company’s fourth-quarter financial results. The language learning platform reported impressive numbers, beating analyst estimates and demonstrating strong growth across key metrics.
In the fourth quarter, Duolingo reported revenue of $150.99 million, surpassing estimates of $148.09 million. Earnings per share came in at 26 cents, beating expectations of 15 cents. The company ended the quarter with $191 million in total bookings, a 51% increase year-over-year. Paid subscribers also saw a significant jump, rising 57% to 6.6 million. Additionally, Duolingo reported 26.9 million daily active users, a 65% increase year-over-year, and 88.4 million monthly active users, up 46% year-over-year.
Luis von Ahn, co-founder and CEO of Duolingo, expressed his excitement about the company’s performance in 2023, stating, “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.” He emphasized the company’s focus on user growth, engagement, and subscriber numbers throughout the year.
Looking ahead, Duolingo provided guidance for the first quarter, expecting revenue in the range of $164 million to $167 million, higher than estimates of $159.238 million. For the full year, the company anticipates revenue between $717.5 million and $729.5 million, surpassing estimates of $699.096 million. Duolingo remains committed to its mission of expanding its user base globally and providing high-quality language learning experiences.
Following the earnings release, Duolingo shares surged 21.2% in after-hours trading to $237. Investors and analysts are optimistic about the company’s growth prospects and the continued momentum in user engagement and subscription numbers.
In conclusion, Duolingo’s strong fourth-quarter results and optimistic outlook for 2024 have propelled its stock higher in after-hours trading. The company’s focus on user satisfaction, subscriber growth, and global expansion bodes well for its future performance in the language learning market.
