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Mar 31, 2024

Duolingo Q1 2024 Earnings Report

Reported stellar performance with strong bookings and revenue growth, alongside record profitability.

Key Takeaways

Duolingo reported a 45% increase in revenue and record profitability in Q1 2024. Total revenue reached $167.6 million, with net income at $27.0 million. The company's strong performance has led to an increased full-year guidance.

Total bookings increased by 41% year-over-year to $197.5 million.

Subscription bookings grew by 47% year-over-year to $161.5 million.

Paid subscribers reached 7.4 million, a 54% increase from the prior year.

Daily active users (DAUs) increased by 54% year-over-year to 31.4 million, and monthly active users (MAUs) increased by 35% to 97.6 million.

Total Revenue
$168M
Previous year: $116M
+44.9%
EPS
$0.57
Previous year: -$0.06
-1050.0%
Total Bookings
$197M
Previous year: $140M
+41.0%
Subscription Bookings
$161M
Previous year: $110M
+46.6%
Monthly Active Users
97.6M
Previous year: 72.6M
+34.4%
Gross Profit
$122M
Previous year: $84.2M
+45.4%
Cash and Equivalents
$830M
Previous year: $641M
+29.4%
Free Cash Flow
$79.6M
Previous year: $28.9M
+175.3%
Total Assets
$1.07B
Previous year: $790M
+35.2%

Duolingo

Duolingo

Forward Guidance

Duolingo is providing guidance for the second quarter ending March 31, 2024, and updating its guidance for the full year ending December 31, 2024.

Positive Outlook

  • Second Quarter 2024 Total Bookings: $179.0 million - $181.5 million
  • Second Quarter 2024 Revenues: $175.0 million - $177.5 million
  • Second Quarter 2024 Adjusted EBITDA: $36.8 million - $39.1 million
  • Second Quarter 2024 Adjusted EBITDA Margin: 21% - 22%
  • Full Year 2024 Adjusted EBITDA Margin: 23% - 24%

Challenges Ahead

  • Full Year 2024 Total Bookings: $808.5 million - $817.5 million
  • Full Year 2024 Revenues: $726.5 million - $735.5 million
  • Full Year 2024 Adjusted EBITDA: $167.1 million - $176.5 million
  • A reconciliation to GAAP net income (loss) has not been provided as the quantification of certain items included in the calculation of GAAP net income (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, and 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.