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Takeaways
- Duolingo shares reached an all-time-high Friday after the language learning platform exceeded first quarter estimates.
- The company's revenue, profit, and user numbers all topped expectations, and Duolingo lifted its full-year revenue forecast.
- JPMorgan analysts lifted their price target to $500 from $360, and said they see room for Duolingo's user base to continue growing.
Duolingo’s (DUOL), a language-learning platform, surpassed expectations for the first three months.
Duolingo announced earnings per share of $0.72 and revenue that increased 38% over the past year to $230.7 millions. Both figures exceeded Visible Alpha’s consensus estimates.
The company saw a 40% increase in paid subscribers, to 10.3 millions. It also saw a nearly 50% jump in daily active users (DAUs), to 46.6 Million. Both metrics exceeded projections.
Duolingo’s full-year revenue forecasts have also been raised to a range from $987 to $996 millions, up from its previous range of $962.5 to $978.5millions.
Duolingo’s shares have risen 19%, to more than 477 dollars in recent trading. They set an intraday trading record of $480 at the start of the session.
Duolingo's DAUs Have Room to Keep Growing, JPMorgan Says
In a note following Thursday's report, JPMorgan analysts maintained their "overweight" rating and lifted their price target to $500 from $360, above the Visible Alpha consensus of roughly $446. The analysts said they see room for Duolingo's DAUs to continue growing from a wider adoption of its English lessons, and its non-language-focused material like a chess course, which Duolingo is expected to launch in the coming weeks.
The analysts also said Duolingo's recently announced effort to more than double its language library with 148 new language courses, with an increasing amount of educational content created by generative AI, "will support strong user & paid subscriber growth."
