Duolingo Q4 Earnings: Revenue Beat, EPS Beat, Engagement Growth, Strong Guidance

Duolingo Inc DUOL shares are trading higher in Wednesday’s after-hours session on the heels of the company’s fourth-quarter financial results.

• Q4 Revenue: $150.99 million, beat estimates of $148.09 million

• Q4 EPS: 26 cents, beat estimates of 15 cents

Duolingo ended the quarter with $191 million in total bookings, up 51% on a year-over-year basis. Paid subscribers jumped 57% year-over-year to 6.6 million. The company had 26.9 million daily active users during the quarter, up 65% year-over-year, and 88.4 million monthly active users, up 46% year-over-year.

“2023 was an exceptional year that exceeded our own high expectations. It was capped off with a very strong Q4 that saw us achieve record bookings, revenue and profitability,” said Luis von Ahn, co-founder and CEO of Duolingo. 

“We accelerated DAU growth in each quarter of 2023, and in Q4 achieved record-high user engagement and a record number of subscribers.”

Outlook: Duolingo sees first-quarter revenue in the range of $164 million to $167 million versus estimates of $159.238 million, according to Benzinga Pro. Full-year revenue is expected to be between $717.5 million and $729.5 million versus estimates of $699.096 million.

“In 2024, we’ll remain relentlessly focused on the same strategy: delighting our users, growing subscribers, teaching better and scaling our mission to more learners around the world,” the company said.

Duolingo will hold a conference call to discuss these results at 5:30 p.m. ET.

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DUOL Price Action: Duolingo shares were up 21.2% after hours at $237 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.