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Sep 30, 2024

Duolingo Q3 2024 Earnings Report

Duolingo's Q3 2024 performance was marked by substantial growth across key metrics. The company exceeded expectations in DAU and bookings growth, driven by strategic initiatives like increased family plan adoption and the rollout of Duolingo Max. Strong new and returning user growth, record family plan penetration, and significant bookings contribution from Duolingo Max fueled the positive results.

Key Takeaways

Duolingo reported a strong third quarter in 2024, with significant increases in daily active users (DAUs), paid subscribers, and total revenue. Total revenues increased by 40% year-over-year, and the company saw a substantial rise in net income.

Total bookings increased by 38% year-over-year, reaching $211.5 million.

Subscription bookings grew by 45% year-over-year, totaling $176.3 million.

Paid subscribers increased by 47% year-over-year, reaching 8.6 million.

Daily active users (DAUs) grew by 54% year-over-year, reaching 37.2 million, and monthly active users (MAUs) grew by 36% year-over-year, reaching 113.1 million.

Total Revenue
$193M
Previous year: $138M
+39.9%
EPS
$0.49
Previous year: $0.06
+716.7%
Total Bookings
$211M
Previous year: $154M
+37.7%
Subscription Bookings
$176M
Previous year: $121M
+45.3%
Monthly Active Users
113.1M
Previous year: 83.1M
+36.1%
Gross Profit
$140M
Previous year: $101M
+38.5%
Cash and Equivalents
$854M
Previous year: $702M
+21.8%
Free Cash Flow
$52.7M
Previous year: $36.9M
+42.8%
Total Assets
$1.22B
Previous year: $871M
+40.1%

Duolingo

Duolingo

Duolingo Revenue by Segment

Forward Guidance

Duolingo provided guidance for the fourth quarter and updated its full year guidance for 2024. The company expects total bookings between $244.5 million and $247.5 million for the fourth quarter and between $843.5 million and $846.5 million for the full year. Revenues are expected to be between $202.5 million and $205.5 million for the fourth quarter and between $741.0 million and $744.0 million for the full year. Adjusted EBITDA is projected to be between $48.6 million and $50.8 million for the fourth quarter and between $188.3 million and $190.4 million for the full year.

Positive Outlook

  • Total bookings are projected to be between $244.5 million and $247.5 million for Q4 2024.
  • Full year total bookings are expected to range from $843.5 million to $846.5 million.
  • Q4 2024 revenues are forecasted to be between $202.5 million and $205.5 million.
  • Full year revenues are projected to be between $741.0 million and $744.0 million.
  • Adjusted EBITDA for Q4 2024 is expected to be between $48.6 million and $50.8 million.