Duolingo Q2 2024 Earnings Report
Key Takeaways
Duolingo reported a strong second quarter in 2024, marked by significant growth in MAUs, DAUs, paid subscribers, and revenue. The company exceeded 100 million MAUs and saw a substantial increase in net income and free cash flow compared to the prior year quarter.
Total bookings increased by 38% year-over-year, reaching $190.1 million.
Paid subscribers grew to 8.0 million, a 52% increase compared to the previous year.
Daily active users (DAUs) surged by 59% year-over-year, reaching 34.1 million, and monthly active users (MAUs) increased by 40% to 103.6 million.
Total revenues increased by 41% year-over-year, amounting to $178.3 million.
Duolingo
Duolingo
Forward Guidance
Duolingo provided guidance for the third quarter ending September 30, 2024, and updated its guidance for the full year ending December 31, 2024.
Positive Outlook
- Total bookings are expected to be between $194.5 million and $197.5 million for Q3 2024.
- Revenues are projected to be between $186.7 million and $189.7 million for Q3 2024.
- Adjusted EBITDA is anticipated to be between $40.1 million and $42.7 million for Q3 2024.
- Total bookings are expected to be between $820.5 million and $827.5 million for the full year 2024.
- Revenues are projected to be between $731.3 million and $738.3 million for the full year 2024.
Challenges Ahead
- The company has not provided a reconciliation to GAAP net income for Adjusted EBITDA and Adjusted EBITDA margin outlook.
- The quantification of certain items included in the calculation of GAAP net income 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 the 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.
- The probable significance of the unavailable information could have a potentially unpredictable and potentially significant impact on future GAAP financial results.