NASDAQ$DUOL

Duolingo · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Financial results for the quarter ended June 30, 2021 were announced.

Duolingo's Q2 2021 saw a 47% increase in total revenues to $58.8 million, a gross profit increase of 51% to $42.7 million. Paid subscribers increased by 46% to 1.9 million. However, the company experienced a net loss of $176 thousand, compared to a net income of $40 thousand in the prior year quarter.

  • Total revenues increased by 47% from the prior year quarter to $58.8 million.
  • Gross Profit increased by 51% from the prior year quarter to $42.7 million.
  • Paid Subscribers increased 46% from the prior year to 1.9 million.
  • Total bookings were $64.5 million, an increase of 30% from the prior year quarter.

Headline financials

Total Revenue

$58.8M

Previous: $68.1M-13.7%
EPS (adj)

-$0.01

Previous: -$0.18+94.4%
Monthly Active Users

37.9M

Previous: 39.1M-3.0%
Daily Active Users

9.1M

Previous: 8.9M+2.0%
Paid Subscribers

1.9M

Previous: 1.3M+46.0%
Total Bookings

$64.5M

Previous: $49.6M+30.0%
Subscription Bookings

$48.9M

Previous: $36.5M+34.0%
Capital Expenditures

-$1.98M

Previous: $2.19M-190.2%
Free Cash Flow

-$2.15M

Previous: $11M-119.6%
Net Income

-$176K

Previous: $40K-540.0%
Operating Income

-$478K

Previous: $82K-682.9%
Gross Profit

$42.7M

Previous: $28.2M+51.3%
Cash & Equivalents

$115M

Previous: $81.1M+41.3%
Total Assets

$182M

No prior period
Stock-Based Comp

$2.91M

Previous: $2.84M+2.5%

Revenue & EPS history

Duolingo · Revenue · Quarterly

$58.8M

Q2 2021-13.7%vs Q2 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Duolingo · $115M total across 2 segments · Q3 2023

  • Subscription bookings
    $106M+46.7%
  • Other bookings
    $9.45M+85.9%

Forward guidance

Duolingo provided guidance for the third quarter and full year 2021.

Tailwinds

  • Third Quarter 2021 Total Bookings are expected to be between $63.0 million and $66.0 million.
  • Third Quarter 2021 Revenues are expected to be between $58.5 million and $61.5 million.
  • Full Year 2021 Total Bookings are expected to be between $267 million and $273 million.
  • Full Year 2021 Revenues are expected to be between $236 million and $242 million.
  • Adjusted EBITDA is expected to improve in the full year 2021 compared to the third quarter 2021.

Headwinds

  • Third Quarter 2021 Adjusted EBITDA is expected to be between $(12.0) million and $(8.0) million.
  • Full Year 2021 Adjusted EBITDA is expected to be between $(14) million and $(8) million.
  • The quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts.
  • The non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable.
  • The non- GAAP adjustment for certain legal, tax and regulatory reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

+5.3%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+9.4%

Avg return

30 days after

61%

14 / 23 earnings

Positive

+42.5%

Q1 2022

Best reaction

-25.5%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-3.0%-4.7%
Q4 2025+12.0%-18.1%-18.8%
Q3 2025-25.5%-25.0%-23.2%
Q1 2025+21.6%+23.9%+29.9%
Q4 2024-17.0%-22.1%-16.2%
Q3 2024+4.2%+5.0%+21.6%
Q2 2024+8.4%+10.1%+26.2%
Q1 2024-19.4%-27.3%-24.1%
Q4 2023+22.8%+15.5%+13.4%
Q3 2023+23.4%+29.7%+30.5%
Q2 2023+3.4%-0.9%+11.5%
Q1 2023+12.0%+7.3%+19.4%
Q4 2022+24.7%+34.0%+52.8%
Q3 2022-4.6%-4.1%-10.8%
Q2 2022-1.4%-5.9%-11.2%
Q1 2021+27.1%+18.5%+39.4%
Q1 2022+42.5%+29.0%+48.2%
Q4 2021-3.0%+3.9%+24.3%
Q3 2020-7.3%-6.8%-36.8%
Q3 2021+3.3%-4.3%-34.8%
Q2 2020+0.5%-1.8%+27.5%
Q4 2020+0.5%-1.8%+27.5%
Q2 2021-4.4%-3.6%+23.8%
Q1 2020

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