NASDAQ$DUOL

Duolingo · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Duolingo's Q2 2023 results demonstrated strong user growth and excellent financial performance, with increased profitability.

Duolingo reported a 62% increase in DAU, a 44% increase in revenue, and stronger profitability in Q2 2023. Total revenues were $126.8 million, an increase of 44% from the prior year quarter and net income totaled $3.7 million, compared to a net loss of $15.0 million in the prior year quarter.

  • Total bookings were $137.5 million, an increase of 41% from the prior year quarter.
  • Subscription bookings were $106.3 million, an increase of 43% from the prior year quarter.
  • Paid Subscribers totaled 5.2 million at quarter end, an increase of 59% from the prior year quarter.
  • Monthly active users (MAUs) grew 50% to 74.1 million and Daily active users (DAUs) grew 62% to 21.4 million from the prior year quarter.

Headline financials

Total Revenue

$127M

Previous: $88.4M+43.5%
EPS (adj)

$0.08

Previous: -$0.38+121.1%
Monthly Active Users

74.1M

Previous: 49.5M+49.7%
Daily Active Users

21.4M

Previous: 13.2M+62.1%
Paid Subscribers

5.2M

Previous: 3.3M+57.6%
Total Bookings

$138M

Previous: $97.5M+41.1%
Subscription Bookings

$106M

Previous: $74.1M+43.3%
Capital Expenditures

-$1.51M

Previous: -$3.19M+52.7%
Free Cash Flow

$2.22M

Previous: -$18.2M+112.2%
Net Income

$3.73M

Previous: -$15M+124.8%
Operating Income

-$4.87M

Previous: -$15M+67.6%
Gross Profit

$93.1M

Previous: $64.5M+44.2%
Cash & Equivalents

$679M

Previous: $591M+14.8%
Total Assets

$835M

Previous: $701M+19.1%
Stock-Based Comp

$23.7M

Previous: $18.1M+30.9%

Revenue & EPS history

Duolingo · Revenue · Quarterly

$127M

Q2 2023+43.5%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Duolingo · $95.2M total across 1 segment · Q2 2023

  • Subscription bookings
    $95.2M+46.0%

Forward guidance

Duolingo is providing the following guidance for the third quarter and the full year ending December 31, 2023:

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+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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