Duolingo Analysts Raise Their Forecasts After Upbeat Q4 Results

Duolingo, Inc. DUOL reported better-than-expected fourth-quarter financial results and issued strong guidance on Wednesday.

The company posted quarterly revenue of $150.99 million, beating estimates of $148.09 million. Earnings came in at 26 cents per share, topping expectations of 15 cents per share, according to data from Benzinga Pro.

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.

“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.”

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.

Duolingo shares rose 0.5% to close at $195.51 on Wednesday.

These analysts made changes to their price targets on Duolingo after the company reported quarterly results.

• Piper Sandler raised the price target on Duolingo from $217 to $282. Piper Sandler analyst Arvind Ramnani maintained an Overweight rating.
• UBS increased the price target on Duolingo from $230 to $275. UBS analyst Chris Kuntarich maintained a Buy rating.

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