NASDAQ$DUOL
Duolingo · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
Duolingo Q4 2024 Earnings Report
Duolingo reported strong Q4 2024 results with revenue growing 39% YoY to $209.6 million. GAAP EPS was $0.32, while non-GAAP EPS was not provided. Operating income increased to $13.88 million, and free cash flow surged to $87.8 million, reflecting a 42% free cash flow margin. Paid subscribers reached 9.5 million, up 43% YoY, driving record total bookings of $271.6 million.
- Total revenue grew 39% YoY to $209.6 million.
- Paid subscribers reached 9.5 million, a 43% YoY increase.
- Subscription bookings rose 50% YoY to $236.5 million.
- Free cash flow surged to $87.8 million, with a 41.9% margin.
Headline financials
Revenue & EPS history
Duolingo · Revenue · Quarterly
$210M
Revenue by segment
Duolingo · $115M total across 2 segments · Q3 2023
- Subscription bookings$106M+46.7%91.8%
- Other bookings$9.45M+85.9%8.2%
Forward guidance
Duolingo expects continued revenue growth in Q1 and FY25, with full-year revenue guidance between $962.5 million and $978.5 million. Total bookings are projected between $1.08 billion and $1.10 billion, with an adjusted EBITDA margin ranging from 27% to 28%.
Tailwinds
- Revenue forecast between $962.5 million and $978.5 million for FY25.
- Total bookings expected to reach $1.08 billion to $1.10 billion.
- Paid subscriber base expected to continue growing with Duolingo Max expansion.
- Strong engagement metrics with continued investment in AI-driven features.
- Operating leverage expected to improve despite increased AI-related costs.
Headwinds
- Subscription margins under pressure due to higher AI costs.
- Advertising revenue per DAU declined YoY.
- Foreign exchange fluctuations may impact revenue growth.
- Higher operational costs expected due to AI and product investments.
- Potential user churn as Duolingo Max pricing evolves.
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 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
| Quarter | Report date | Reaction (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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