NASDAQ$DUOL

Duolingo · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Duolingo's Q3 2024 performance was marked by substantial growth across key metrics. The company exceeded expectations in DAU and bookings growth, driven by strategic initiatives like increased family plan adoption and the rollout of Duolingo Max. Strong new and returning user growth, record family plan penetration, and significant bookings contribution from Duolingo Max fueled the positive results.

Duolingo reported a strong third quarter in 2024, with significant increases in daily active users (DAUs), paid subscribers, and total revenue. Total revenues increased by 40% year-over-year, and the company saw a substantial rise in net income.

  • Total bookings increased by 38% year-over-year, reaching $211.5 million.
  • Subscription bookings grew by 45% year-over-year, totaling $176.3 million.
  • Paid subscribers increased by 47% year-over-year, reaching 8.6 million.
  • Daily active users (DAUs) grew by 54% year-over-year, reaching 37.2 million, and monthly active users (MAUs) grew by 36% year-over-year, reaching 113.1 million.

Headline financials

Total Revenue

$193M

Previous: $138M+39.9%
EPS

$0.49

Previous: $0.06+716.7%
Monthly Active Users

113.1M

Previous: 83.1M+36.1%
Daily Active Users

37.2M

Previous: 24.2M+53.7%
Paid Subscribers

8.6M

Previous: 5.8M+48.3%
Total Bookings

$212M

Previous: $154M+37.7%
Subscription Bookings

$176M

Previous: $121M+45.3%
Capital Expenditures

-$10.2M

Previous: -$2.27M-347.9%
Free Cash Flow

$13.2M

Previous: $540K+2345.4%
Net Income

$23.4M

Previous: $2.81M+732.2%
Operating Income

$13.6M

Previous: -$4.67M+390.7%
Gross Profit

$140M

Previous: $101M+38.5%
R&D Expense

$62.2M

Previous: $50.3M+23.7%
Stock-Based Comp

$29M

Previous: $25.4M+13.9%

Revenue & EPS history

Duolingo · Revenue · Quarterly

$193M

Q3 2024+39.9%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
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 fourth quarter and updated its full year guidance for 2024. The company expects total bookings between $244.5 million and $247.5 million for the fourth quarter and between $843.5 million and $846.5 million for the full year. Revenues are expected to be between $202.5 million and $205.5 million for the fourth quarter and between $741.0 million and $744.0 million for the full year. Adjusted EBITDA is projected to be between $48.6 million and $50.8 million for the fourth quarter and between $188.3 million and $190.4 million for the full year.

Tailwinds

  • Total bookings are projected to be between $244.5 million and $247.5 million for Q4 2024.
  • Full year total bookings are expected to range from $843.5 million to $846.5 million.
  • Q4 2024 revenues are forecasted to be between $202.5 million and $205.5 million.
  • Full year revenues are projected to be between $741.0 million and $744.0 million.
  • Adjusted EBITDA for Q4 2024 is expected to be between $48.6 million and $50.8 million.

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 2024

Historical avgQ3 2024

+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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