Duolingo, Inc. (DUOL) Bundle
A Brief History of Duolingo
Duolingo, Inc. has experienced significant growth and development since its inception in 2011, focusing on making language learning accessible and engaging through its innovative platform. As of 2024, Duolingo continues to expand its market presence and enhance its offerings.
Financial Performance Overview
For the nine months ended September 30, 2024, Duolingo reported total revenues of $538.5 million, a 42% increase compared to $380.1 million for the same period in 2023. Subscription revenues grew by 51%, reaching $433.2 million, up from $287.2 million in the prior year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenues | $538.5 million | $380.1 million | 42% |
| Subscription Revenues | $433.2 million | $287.2 million | 51% |
User Growth Metrics
Duolingo's user engagement has also seen remarkable growth. As of September 30, 2024, the platform boasted approximately 113.1 million monthly active users (MAUs), up from 83.1 million in 2023, representing a 36% increase. Daily active users (DAUs) rose to 37.2 million from 24.2 million, marking a 54% increase.
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Monthly Active Users (MAUs) | 113.1 million | 83.1 million | 36% |
| Daily Active Users (DAUs) | 37.2 million | 24.2 million | 54% |
Net Income and Cash Flow
Duolingo recorded a net income of $74.7 million for the nine months ended September 30, 2024, compared to $4.0 million for the same period in 2023. The free cash flow for the same period was $187.2 million, up from $96.6 million in 2023.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $74.7 million | $4.0 million |
| Free Cash Flow | $187.2 million | $96.6 million |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $346.5 million, showing a decrease as a percentage of revenue compared to the previous year. Research and development expenses increased to $168.9 million, primarily driven by personnel costs and technology investments.
| Expense Category | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Operating Expenses | $346.5 million | $296.5 million |
| Research and Development | $168.9 million | $144.1 million |
Market Position and Future Outlook
Duolingo remains a leader in the language learning market, leveraging technology and user engagement strategies to drive growth. The company continues to innovate and expand its service offerings, positioning itself for sustained success in the competitive edtech landscape.
A Who Owns Duolingo, Inc. (DUOL)
Ownership Structure
As of 2024, Duolingo, Inc. has a dual-class share structure comprising Class A and Class B common stocks. The Class A shares have one vote per share, while Class B shares have ten votes per share. This structure allows the founders and executives to maintain control over corporate decisions.
Major Shareholders
The largest shareholders of Duolingo include:
- Luis von Ahn: Co-founder and CEO, holds a significant percentage of Class B shares.
- Severin Hacker: Co-founder and CTO, also has a substantial amount of Class B shares.
- Institutional Investors: Several large investment firms and mutual funds hold Class A shares, contributing to the public ownership of the company.
Shareholder Composition Table
| Shareholder Type | Ownership Percentage | Share Class |
|---|---|---|
| Founders (Luis von Ahn, Severin Hacker) | ~60% | Class B |
| Institutional Investors | ~30% | Class A |
| Retail Investors | ~10% | Class A |
Stock Performance
As of September 30, 2024, Duolingo's stock (DUOL) has shown significant growth. Key financial metrics include:
- Market Capitalization: Approximately $4 billion.
- Stock Price: $115 per share.
- 52-week Range: $90 - $145.
Recent Financial Performance
Duolingo's financial performance for the nine months ended September 30, 2024, includes:
- Total Revenues: $538.5 million, an increase of 42% from the previous year.
- Subscription Revenues: $433.2 million, a 51% increase year-over-year.
- Net Income: $74.7 million, compared to $3.9 million in the same period last year.
Key Financial Metrics Table
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $538.5 million | $380.1 million |
| Subscription Revenues | $433.2 million | $287.2 million |
| Net Income | $74.7 million | $3.9 million |
| Free Cash Flow | $187.2 million | $96.6 million |
Future Considerations
Duolingo continues to focus on expanding its user base and enhancing its product offerings. The company has reported approximately 113.1 million Monthly Active Users (MAUs) as of September 30, 2024, up from 83.1 million in the previous year, signifying robust growth in its user engagement metrics.
Duolingo, Inc. (DUOL) Mission Statement
Mission Statement Overview
Duolingo's mission statement as of 2024 emphasizes its commitment to making education accessible and engaging for everyone. The company aims to provide free language education through its innovative platform, allowing users to learn at their own pace and convenience.
Latest Financial Performance
Duolingo has shown significant growth in its financial metrics for the year 2024. Below is a summary of key financial data:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $192.6 million | $137.6 million | 40% |
| Subscription Revenues | $157.6 million | $105.9 million | 49% |
| Net Income | $23.4 million | $2.8 million | 736% |
| Adjusted EBITDA | $47.5 million | $22.5 million | 111% |
User Engagement Metrics
Duolingo's user engagement has also increased markedly, reflecting its effectiveness in attracting and retaining users:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Monthly Active Users (MAUs) | 113.1 million | 83.1 million | 36% |
| Daily Active Users (DAUs) | 37.2 million | 24.2 million | 54% |
| Paid Subscribers | 8.6 million | 5.8 million | 47% |
Revenue Streams and Disaggregation
Duolingo generates revenue primarily through subscriptions and advertising. The following table illustrates the revenue breakdown for the third quarter of 2024:
| Revenue Source | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Subscription Revenue | $157.6 million | $105.9 million | 49% |
| Advertising Revenue | $14.4 million | $11.7 million | 23% |
| Duolingo English Test | $10.8 million | $10.6 million | 2% |
| In-App Purchases | $9.4 million | $9.2 million | 2% |
Cost Structure and Profitability
Duolingo's cost structure reflects its growth investments and operational efficiencies:
| Cost Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenues | $52.2 million | $36.3 million | 44% |
| Research and Development | $62.9 million | $50.3 million | 25% |
| Sales and Marketing | $25.6 million | $22.3 million | 10% |
| General and Administrative | $38.4 million | $33.4 million | 15% |
Market Position and Future Outlook
Duolingo continues to solidify its position as a leader in the language learning sector, driven by its innovative technology and user-centric approach. The company is well-positioned for future growth with a strong emphasis on expanding its user base and enhancing product offerings.
How Duolingo, Inc. (DUOL) Works
Business Model
Duolingo, Inc. primarily generates revenue through subscriptions, which include monthly and annual plans. The family plan is available as an annual subscription. Additional revenue streams include advertising, in-app purchases, and the Duolingo English Test.
Financial Performance
For the three months ended September 30, 2024, Duolingo reported total revenues of $192.6 million, a 40% increase from $137.6 million in the same period in 2023. Subscription revenues during this period were $157.6 million, marking a 49% increase from $105.9 million in 2023.
For the nine months ended September 30, 2024, total revenues reached $538.5 million, up 42% from $380.1 million in 2023, with subscription revenues totaling $433.2 million, a 51% increase from $287.2 million in 2023.
| Period | Total Revenue ($ million) | Subscription Revenue ($ million) | % Change Total Revenue | % Change Subscription Revenue |
|---|---|---|---|---|
| Q3 2024 | 192.6 | 157.6 | 40% | 49% |
| Q3 2023 | 137.6 | 105.9 | ||
| 9M 2024 | 538.5 | 433.2 | 42% | 51% |
| 9M 2023 | 380.1 | 287.2 |
Operating Metrics
As of September 30, 2024, Duolingo had approximately 113.1 million monthly active users (MAUs), an increase of 36% from 83.1 million in 2023. Daily active users (DAUs) reached 37.2 million, a 54% increase from 24.2 million in 2023. The number of paid subscribers grew to 8.6 million, up 47% from 5.8 million in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Monthly Active Users (MAUs) | 113.1 million | 83.1 million |
| Daily Active Users (DAUs) | 37.2 million | 24.2 million |
| Paid Subscribers | 8.6 million | 5.8 million |
Revenue Composition
Revenue from subscriptions accounted for a significant portion of total revenues. For Q3 2024, subscription revenue was $157.6 million, while other revenue sources, including advertising and in-app purchases, contributed $34.977 million.
| Revenue Source | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Subscription Revenue | 157.6 | 105.9 |
| Advertising Revenue | 14.4 | 11.7 |
| Duolingo English Test Revenue | 10.8 | 10.6 |
| In-App Purchases | 9.4 | 9.2 |
| Other Revenue | 0.4 | 0.2 |
Cost and Profitability
The cost of revenues for Q3 2024 was $52.2 million, resulting in a gross profit of $140.4 million and a gross margin of 72.9%. In comparison, the cost of revenues for Q3 2023 was $36.3 million, with a gross profit of $101.4 million and a gross margin of 73.7%.
| Period | Cost of Revenues ($ million) | Gross Profit ($ million) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | 52.2 | 140.4 | 72.9% |
| Q3 2023 | 36.3 | 101.4 | 73.7% |
Net Income
Duolingo’s net income for Q3 2024 was reported at $23.4 million, compared to $2.8 million for Q3 2023. The net income for the nine months ended September 30, 2024, was $74.7 million, a significant increase from $4.0 million in the same period of 2023.
| Period | Net Income ($ million) |
|---|---|
| Q3 2024 | 23.4 |
| Q3 2023 | 2.8 |
| 9M 2024 | 74.7 |
| 9M 2023 | 4.0 |
Cash Flow
Net cash provided by operating activities for the nine months ended September 30, 2024, was $202.2 million, compared to $104.4 million for the same period in 2023. Free cash flow for the same period was $187.2 million, up from $96.6 million in 2023.
| Period | Net Cash Provided by Operating Activities ($ million) | Free Cash Flow ($ million) |
|---|---|---|
| 9M 2024 | 202.2 | 187.2 |
| 9M 2023 | 104.4 | 96.6 |
How Duolingo, Inc. (DUOL) Makes Money
Revenue Streams
Duolingo generates revenue primarily from three main streams:
- Subscription Revenues
- Advertising Revenues
- Duolingo English Test and In-App Purchases
Subscription Revenues
Subscription revenue is the largest component of Duolingo's income. For the three months ended September 30, 2024, Duolingo reported:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Subscription Revenue (in thousands) | $157,617 | $105,887 | $51,730 | 49% |
| Paid Subscribers (millions) | 8.6 | 5.8 | 2.8 | 48% |
For the nine months ended September 30, 2024, subscription revenue totaled $433,214, representing a 51% increase from $287,230 in 2023.
Advertising Revenues
Advertising revenue is another significant source of income. For the three months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Advertising Revenue (in thousands) | $14,405 | $11,678 | $2,727 | 23.3% |
For the nine months ended September 30, 2024, advertising revenue was $40,615, an increase from $36,374 in the previous year.
Duolingo English Test and In-App Purchases
This category contributed significantly to other revenues. For the three months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Duolingo English Test Revenue (in thousands) | $10,772 | $10,612 | $160 | 1.5% |
| In-App Purchases Revenue (in thousands) | $9,411 | $9,233 | $178 | 1.9% |
For the nine months ended September 30, 2024, Duolingo English Test revenue reached $34,225, compared to $30,393 in the previous year.
Key Financial Metrics
Duolingo's overall financial performance has shown strong growth. The following metrics summarize the company's key financials for the three and nine months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue (in thousands) | $192,594 | $137,624 | $538,474 | $380,124 |
| Net Income (in thousands) | $23,360 | $2,807 | $74,667 | $3,950 |
| Gross Margin (%) | 72.9% | 73.7% | 73.1% | 73.3% |
Duolingo's total revenue increased by 40% year-over-year for Q3 2024 and 42% for the nine-month period.
Cost Structure
Duolingo's cost of revenues primarily includes third-party payment processing fees and hosting fees. For the three months ended September 30, 2024:
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Total Cost of Revenues | $52,180 | $36,254 | $15,926 |
The gross margin for this period was reported at 72.9%, slightly down from 73.7% in Q3 2023.
Cash Flow and Bookings
For the three months ended September 30, 2024, Duolingo generated:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscription Bookings (in thousands) | $176,309 | $121,342 |
| Total Bookings (in thousands) | $211,456 | $153,556 |
This reflects a year-over-year increase of 45% for subscription bookings and 38% for total bookings.
Duolingo, Inc. (DUOL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Duolingo, Inc. (DUOL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Duolingo, Inc. (DUOL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Duolingo, Inc. (DUOL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.