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Dec 31, 2021

Duolingo Q4 2021 Earnings Report

Announced record results for the fourth quarter, with revenue increasing by 51% and paid subscribers reaching 2.5 million.

Key Takeaways

Duolingo reported a strong Q4 2021, marked by accelerated user growth and a record number of net subscriber additions. Total revenue increased by 51% year-over-year, driven by growth in subscription bookings. The company's focus on engaging and effective learning, along with new product initiatives, contributed to the positive results.

Total bookings increased by 59% year-over-year to $90.8 million.

Subscription bookings grew by 61% year-over-year to $69.8 million.

Paid subscribers reached 2.5 million, a 56% increase from the prior year.

MAUs increased by 15% to 42.4 million, and DAUs grew by 20% to 10.1 million.

Total Revenue
$73M
Previous year: $48.3M
+51.3%
EPS
-$0.46
Previous year: -$0.81
-43.2%
Total Bookings
$90.8M
Previous year: $57.1M
+59.2%
Subscription Bookings
$69.8M
Previous year: $43.3M
+61.1%
Monthly Active Users
42.4M
Previous year: 37M
+14.6%
Gross Profit
$53.1M
Previous year: $35.4M
+49.9%
Cash and Equivalents
$554M
Previous year: $120M
+359.7%
Free Cash Flow
-$91K
Previous year: $2.86M
-103.2%
Total Assets
$661M
Previous year: $176M
+276.3%

Duolingo

Duolingo

Forward Guidance

Duolingo provided guidance for Q1 2022 with total bookings between $92.0 million and $95.0 million and revenues between $75.5 million and $78.5 million. Adjusted EBITDA is expected to be between $(5.5) million and $(2.5) million. For the full year 2022, the company expects total bookings between $372.0 million and $382.0 million and revenues between $332.0 million and $342.0 million. Adjusted EBITDA is projected to be between $(5.0) million and $(1.0) million.

Positive Outlook

  • Total Bookings Q1 2022 (Low): $92.0 million
  • Total Bookings Q1 2022 (High): $95.0 million
  • Revenues Q1 2022 (Low): $75.5 million
  • Revenues Q1 2022 (High): $78.5 million
  • Total Bookings FY 2022 (Low): $372.0 million

Challenges Ahead

  • Adjusted EBITDA Q1 2022 (Low): $(5.5) million
  • Adjusted EBITDA Q1 2022 (High): $(2.5) million
  • Adjusted EBITDA FY 2022 (Low): $(5.0) million
  • Adjusted EBITDA FY 2022 (High): $(1.0) million
  • Total Bookings FY 2022 (High): $382.0 million