NASDAQ$DUOL

Duolingo · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Achieved record bookings and a record number of paid subscribers, with monthly and daily users also reaching all-time highs.

Duolingo's Q3 2021 saw a 40% increase in total revenues to $63.6 million, driven by subscription revenue growth. Total bookings increased by 57% to $73.1 million and paid subscribers reached 2.2 million, a 49% increase. However, the company experienced a net loss of $29.0 million, compared to a net loss of $3.2 million in the prior year quarter, largely due to IPO-related costs.

  • Total revenues increased 40% year-over-year to $63.6 million.
  • Total bookings were $73.1 million, up 57% year-over-year.
  • Paid subscribers totaled 2.2 million, a 49% increase from the prior year quarter.
  • Net loss totaled $29.0 million, primarily due to IPO-related costs.

Headline financials

Total Revenue

$63.6M

Previous: $45.3M+40.4%
EPS (adj)

-$0.98

Previous: -$0.25-292.0%
Monthly Active Users

41.7M

Previous: 37.0M+12.7%
Daily Active Users

9.8M

Previous: 8.4M+16.7%
Paid Subscribers

2.2M

Previous: 1.5M+46.7%
Total Bookings

$73.1M

Previous: $46.7M+56.5%
Subscription Bookings

$55.4M

Previous: $33.8M+63.9%
Capital Expenditures

-$3.06M

Previous: $364K-941.5%
Free Cash Flow

-$32M

Previous: $483K-6732.1%
Net Income

-$29M

Previous: -$3.18M-812.2%
Operating Income

-$28.7M

Previous: -$3.07M-835.8%
Gross Profit

$45.5M

Previous: $32.2M+41.3%
Cash & Equivalents

$549M

Previous: $82.3M+567.6%
Total Assets

$618M

No prior period
Stock-Based Comp

$20.7M

Previous: $1.68M+1128.4%

Revenue & EPS history

Duolingo · Revenue · Quarterly

$63.6M

Q3 2021+40.4%vs Q3 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Duolingo · $47.9M total across 2 segments · Q3 2021

  • Subscription bookings
    $46M+42.4%
  • Other bookings
    $1.84M+178.5%

Forward guidance

Duolingo provided guidance for the fourth quarter and full year ending December 31, 2021.

Tailwinds

  • Fourth Quarter 2021 Total Bookings: Low $79.0 million, High $82.0 million
  • Fourth Quarter 2021 Revenues: Low $66.5 million, High $69.5 million
  • Fourth Quarter 2021 Adjusted EBITDA: Low $(6.5) million, High $(3.5) million
  • Full Year 2021 Total Bookings: Low $282.5 million, High $285.5 million
  • Full Year 2021 Revenues: Low $244.0 million, High $247.0 million

Headwinds

  • Fourth Quarter 2021 Adjusted EBITDA: Low $(6.5) million, High $(3.5) million
  • Full Year 2021 Adjusted EBITDA: Low $(8.0) million, High $(5.0) million
  • Reconciliation to GAAP net earnings (loss) has not been provided
  • Quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts
  • 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

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 Q3 2021

Historical avgQ3 2021

+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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