Duolingo (DUOL -6.82%) runs the biggest online language learning platform, providing engaging and game-like lessons to nearly anyone with a smartphone. The company is using artificial intelligence (AI) to enhance the user experience even more, and it is achieving great success.
Duolingo has a strong advantage due to its large amount of data and use of AI, which helps keep users engaged and loyal, making it better than AI chatbots. As AI costs decrease, Duolingo can improve its research and development, creating more personalized learning experiences that will help retain users and increase profits. The new video call feature in Duolingo Max aims at the language exchange market, which could bring in an extra $120 million in revenue with better profit margins.
Duolingo (DUOL -5.40%) had its fourth-quarter earnings call for 2024 on February 27, 2025, where CEO Luis von Ahn called it "an outstanding record quarter." The company experienced a 51% increase in daily active users (DAUs), reaching 40 million, and achieved record highs in quarterly bookings, revenue, and adjusted EBITDA.
Duolingo (DUOL) has recently caught the attention of Zacks.com users. Therefore, it's important to look into what the future holds for this stock.
Duolingo's revenue for the fourth quarter of fiscal year 2024 increased by 39% compared to the previous year, reaching $209.6 million, thanks to a rise in user numbers and more people subscribing to Duolingo Max. However, the stock fell by 16% after the earnings report because the company provided cautious revenue forecasts for fiscal year 2025 and indicated that operating costs would rise more quickly than in the previous year. While management expects revenue to grow by 29.75% in FY25, the higher operating expenses and tougher comparisons may limit the stock's potential for growth.
Duolingo, Inc.'s stock dropped about 15% after it announced its Q4 results, even though it saw good user growth and an increase in bookings. Concerns about AI taking over jobs are not justified, as Duolingo's user numbers and advanced AI tools demonstrate strong stability and ongoing growth. However, there are risks such as users leaving after finishing courses, economic difficulties, and a high valuation that could restrict future gains.
Duolingo's stock dropped by 14.6% by 10:55 a.m. ET on Friday, even though it had exceeded analysts' expectations for Q4 sales the previous evening.
The financial results for Duolingo (DUOL) provide an overview of the company's performance for the quarter ending in December 2024. It may also be helpful to compare some of its important metrics with Wall Street predictions and figures from the previous year.
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Duolingo, Inc. (DUOL) finished the most recent trading session at $432.69, which is an increase of 0.55% compared to the previous day.