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Sep 30, 2021
Duolingo Q3 2021 Earnings Report
Achieved record bookings and a record number of paid subscribers, with monthly and daily users also reaching all-time highs.
Key Takeaways
Duolingo's Q3 2021 saw a 40% increase in total revenues to $63.6 million, driven by subscription revenue growth. Total bookings increased by 57% to $73.1 million and paid subscribers reached 2.2 million, a 49% increase. However, the company experienced a net loss of $29.0 million, compared to a net loss of $3.2 million in the prior year quarter, largely due to IPO-related costs.
Total revenues increased 40% year-over-year to $63.6 million.
Total bookings were $73.1 million, up 57% year-over-year.
Paid subscribers totaled 2.2 million, a 49% increase from the prior year quarter.
Net loss totaled $29.0 million, primarily due to IPO-related costs.
Duolingo
Duolingo
Forward Guidance
Duolingo provided guidance for the fourth quarter and full year ending December 31, 2021.
Positive Outlook
- Fourth Quarter 2021 Total Bookings: Low $79.0 million, High $82.0 million
- Fourth Quarter 2021 Revenues: Low $66.5 million, High $69.5 million
- Fourth Quarter 2021 Adjusted EBITDA: Low $(6.5) million, High $(3.5) million
- Full Year 2021 Total Bookings: Low $282.5 million, High $285.5 million
- Full Year 2021 Revenues: Low $244.0 million, High $247.0 million
Challenges Ahead
- Fourth Quarter 2021 Adjusted EBITDA: Low $(6.5) million, High $(3.5) million
- Full Year 2021 Adjusted EBITDA: Low $(8.0) million, High $(5.0) million
- Reconciliation to GAAP net earnings (loss) has not been provided
- Quantification of certain items included in the calculation of GAAP net earnings (loss) cannot be calculated or predicted at this time without unreasonable efforts
- 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