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Jun 30, 2021
Duolingo Q2 2021 Earnings Report
Financial results for the quarter ended June 30, 2021 were announced.
Key Takeaways
Duolingo's Q2 2021 saw a 47% increase in total revenues to $58.8 million, a gross profit increase of 51% to $42.7 million. Paid subscribers increased by 46% to 1.9 million. However, the company experienced a net loss of $176 thousand, compared to a net income of $40 thousand in the prior year quarter.
Total revenues increased by 47% from the prior year quarter to $58.8 million.
Gross Profit increased by 51% from the prior year quarter to $42.7 million.
Paid Subscribers increased 46% from the prior year to 1.9 million.
Total bookings were $64.5 million, an increase of 30% from the prior year quarter.
Duolingo
Duolingo
Forward Guidance
Duolingo provided guidance for the third quarter and full year 2021.
Positive Outlook
- Third Quarter 2021 Total Bookings are expected to be between $63.0 million and $66.0 million.
- Third Quarter 2021 Revenues are expected to be between $58.5 million and $61.5 million.
- Full Year 2021 Total Bookings are expected to be between $267 million and $273 million.
- Full Year 2021 Revenues are expected to be between $236 million and $242 million.
- Adjusted EBITDA is expected to improve in the full year 2021 compared to the third quarter 2021.
Challenges Ahead
- Third Quarter 2021 Adjusted EBITDA is expected to be between $(12.0) million and $(8.0) million.
- Full Year 2021 Adjusted EBITDA is expected to be between $(14) million and $(8) million.
- The quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts.
- The non-GAAP adjustment for stock-based compensation expense 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.