Duolingo Stock Is Climbing Higher Thursday: What's Going On?

Duolingo, Inc. DUOL shares are trading higher Thursday after the company reported better-than-expected second quarter financial results, issued third quarter sales guidance above estimates and raised its fiscal year 2025 sales guidance above estimates.

What To Know: Duolingo reported earnings per share of 91 cents, beating the consensus estimate of 58 cents. In addition, the company reported sales of $252.26 million, beating the consensus estimate of $240.77 million and representing a 41% year-over-year growth.

Daily active users reached 47.7 million, up 40% year-over-year, while monthly active users rose 24% to 128.3 million.

Paid subscribers rose 37% year-over-year to 10.9 million, up from 8 million, and total bookings jumped 41% to $268 million.

“We exceeded our own high expectations for bookings and revenue this quarter, and did it while expanding profitability,” said Luis von Ahn, Co-Founder and CEO of Duolingo.

Following the earnings report, Barclays analyst Mario Lu maintained an Equal-Weight rating on Duolingo and raised the price target from $375 to $390.

The company reported second quarter financial results on Wednesday after the market closed.

Q3 Outlook: The company sees sales from $257.00 million to $261.00 million, versus the consensus estimate of $252.85 million.

FY25 Outlook: Duolingo raised its sales guidance from between $897.00 million to $996.00 million to between $1.01 billion and $1.02 billion, versus the consensus estimate of $997.34 million.

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DUOL Price Action: At the time of writing, Duolingo stock is trading 28.1% higher at $439.79, according to data from Benzinga Pro.

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