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Mar 31, 2023
Duolingo Q1 2023 Earnings Report
Duolingo experienced strong user and revenue growth alongside increased profitability.
Key Takeaways
Duolingo reported a strong first quarter in 2023, with significant growth in DAUs, revenue, and paid subscribers. The company also saw increased profitability and raised its full-year guidance.
Total bookings increased by 37% year-over-year to $140.1 million.
Subscription bookings grew by 40% year-over-year to $110.1 million.
Paid subscribers increased by 63% year-over-year, reaching 4.8 million.
Total revenues increased by 42% year-over-year to $115.7 million.
Duolingo
Duolingo
Duolingo Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Duolingo provided guidance for the second quarter and full year 2023. Second quarter total bookings are expected to be between $128.0 million and $131.0 million. Second quarter revenues are expected to be between $122.0 million and $125.0 million. Second quarter Adjusted EBITDA is expected to be between $13.4 million and $15.0 million. Full year total bookings are expected to be between $552.0 million and $561.0 million. Full year revenues are expected to be between $500.0 million and $509.0 million. Full year Adjusted EBITDA is expected to be between $55.0 million and $61.0 million.
Positive Outlook
- Second Quarter 2023 Total Bookings are expected to be between $128.0 million and $131.0 million.
- Second Quarter 2023 Revenues are expected to be between $122.0 million and $125.0 million.
- Second Quarter 2023 Adjusted EBITDA is expected to be between $13.4 million and $15.0 million.
- Full Year 2023 Total Bookings are expected to be between $552.0 million and $561.0 million.
- Full Year 2023 Revenues are expected to be between $500.0 million and $509.0 million.
Challenges Ahead
- 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.
- Duolingo is unable to address the probable significance of the unavailable information.
- The unavailable information could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income