Could Language Learning App Duolingo Be Another Benefactor Of 'Squid Game' Mania?

The success of “Squid Game” has helped streaming stock Netflix Inc NFLX and could provide a future lift with the current fiscal quarter, including a potential surge in new subscribers.

Here’s another company that could see a boost in subscribers and revenue thanks to the success of “Squid Game.”

What Happened: Language learning app Duolingo Inc DUOL is one of many companies offering a glimpse into what the top trends were in 2021.

Users who completed at least 10 lessons throughout the year on the Duolingo app can get a personalized year review from Duolingo. The review shows how many courses were taken, what times the lessons were completed and how many hours were spent on the language learning app.

The 2021 Duolingo Language Report also provided an in-depth look into what languages are being learned the most by Duolingo customers, based on data from over 500 million global learners.

One trend seen in the report was growth in Asian languages. Japan became the fifth most popular language to study and the fastest-growing language in the U.S. and the U.K.

Korean was the seventh most popular language to study globally and ranked as the fastest-growing language in multiple countries.

“The world is tuning in to more Korean and Japanese entertainment, listening to more K-pop and reframing language study as something you do to complement and support your interests and other activities,” Duolingo said.

Korean was the second most popular language to study in Japan, a country where it did not rank in the top five in 2020.

Over two-thirds of Duolingo surveyed users said a “cultural event” could inspire them to try to learn a new language. TikTok videos were cited by 29% of people as motivation to learn a new language.

Streaming shows also play a big role in inspiring people to learn new languages. Of those surveyed, 37% said they started Spanish lessons after watching “Money Heist.” Korean was started by 28% of surveyed people after watching “Squid Game.” French was started by 20% of people after watching “Emily in Paris.”

Related Link: Squid Game Mania Takes Over, What It Could Meant For Netflix And This Apparel Stock

Why It’s Important: Duolingo is the most downloaded education app and offers more than 100 courses and teaches 40 languages to customers around the world.

Duolingo reported revenue of $58.8 million in the second quarter and $63.6 million in the third quarter. The company is forecasting revenue of $66.5 million to $69.5 million for the fourth quarter.

The company reported record bookings in the third quarter and strong usage numbers.

“Our performance during the third quarter was exceptional. We achieved record bookings and a record number of paid subscribers, with monthly and daily users also reaching all-time highs,” Duolingo CEO and co-founder Luis von Ahn said.

Duolingo saw strong usage in 2020 due to stay-at-home orders from the COVID-19 pandemic. Duolingo has managed to pass that growth in the reported quarters in 2021.

More people watching international content on Netflix could prove to be a catalyst for Duolingo.

Price Action: DUOL shares have traded between $98 and $205 since going public in July. Thursday at market close, shares were down 8.40% at $99.46, under the $102 IPO price.

Photo by Andy Hermawan on Unsplash