NASDAQ$DUOL

Duolingo · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Duolingo's Q4 2022 results demonstrated strong growth, with significant increases in bookings, subscribers, and active users.

Duolingo reported a strong Q4 2022 with a 42% increase in total revenue, driven by growth in subscription bookings and paid subscribers. The company also saw significant growth in daily and monthly active users.

  • Total bookings increased by 39% year-over-year to $126.4 million.
  • Subscription bookings increased by 44% year-over-year to $100.3 million.
  • Paid subscribers increased by 67% year-over-year, reaching 4.2 million.
  • Daily active users (DAUs) grew by 62% year-over-year to 16.3 million.

Headline financials

Total Revenue

$104M

Previous: $73M+42.2%
EPS (adj)

-$0.35

Previous: -$0.46+23.9%
Monthly Active Users

60.7M

Previous: 42.4M+43.2%
Daily Active Users

16.3M

Previous: 10.1M+61.4%
Paid Subscribers

4.2M

Previous: 2.5M+68.0%
Total Bookings

$126M

Previous: $90.8M+39.2%
Subscription Bookings

$100M

Previous: $69.8M+43.8%
Capital Expenditures

$292K

Previous: $523K-44.2%
Free Cash Flow

$11.3M

Previous: -$91K+12535.2%
Net Income

-$13.9M

Previous: -$17.5M+20.5%
Operating Income

-$18.2M

Previous: -$17.4M-4.2%
Gross Profit

$76.1M

Previous: $53.1M+43.3%
Cash & Equivalents

$608M

Previous: $554M+9.8%
Total Assets

$747M

Previous: $661M+13.0%
Stock-Based Comp

$20.6M

Previous: $14.7M+40.5%

Revenue & EPS history

Duolingo · Revenue · Quarterly

$104M

Q4 2022+42.2%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Duolingo · $84.3M total across 2 segments · Q4 2022

  • Subscription bookings
    $78.1M
  • Other bookings
    $6.14M

Forward guidance

Duolingo provided guidance for Q1 2023 and full year 2023, including total bookings, revenues and adjusted EBITDA.

Tailwinds

  • Q1 2023 total bookings are expected to be between $127.5 million and $130.5 million.
  • Q1 2023 revenues are expected to be between $111.0 million and $114.0 million.
  • Q1 2023 Adjusted EBITDA is expected to be between $10.0 million and $11.4 million.
  • Full year 2023 total bookings are expected to be between $530.0 million and $542.0 million.
  • Full year 2023 revenues are expected to be between $486.0 million and $498.0 million.

Headwinds

  • Full year 2023 Adjusted EBITDA is expected to be between $48.6 million and $59.8 million.
  • A reconciliation to GAAP net loss has not been provided as the quantification of certain items included in the calculation of GAAP net loss cannot be calculated or predicted at this time without unreasonable efforts.
  • The non-GAAP adjustment for stock-based compensation expenses related to equity awards 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.
  • We are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

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 Q4 2022

Historical avgQ4 2022

+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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