Duolingo Q1 2023 Earnings Report
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
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.