Duolingo Inc. (DUOL) Witnesses 10% Increase in Shares
Shares of Duolingo Inc. (DUOL) experienced a remarkable surge of more than 10% in the extended session on Wednesday following the release of their third-quarter financial report. The language-learning platform revealed a surprising profit during this period along with a significant increase in revenue.
Impressive Financial Results
In the third quarter, Duolingo generated a profit of $2.8 million, equivalent to 6 cents per share. This demonstrated a substantial turnaround compared to the loss of $18.5 million, or 46 cents per share, reported in the same quarter of the previous year. Furthermore, the company’s revenue grew impressively by 43%, amounting to $138 million.
Exceeding Analyst Expectations
Duolingo’s outstanding performance surpassed analysts’ predictions. According to FactSet data, analysts had estimated a loss of 7 cents per share on sales of $132 million. However, the company proved them wrong by reporting an unexpected profit and surpassing revenue expectations.
Continued User Growth
Duolingo’s user base continues to expand steadily. The platform reported having 83.1 million monthly active users in the third quarter—a remarkable increase of 47% compared to the same period last year.
A Shift Towards Diversification
Last month, Duolingo announced a strategic shift in its approach. The platform aims to become more than just a language-learning app and has started offering math and music courses in addition to its existing language courses. This move is expected to provide greater value to users while leveraging the unique features that have made Duolingo popular, such as its engaging and effective learning experience.
Commenting on this strategic shift, Chief Executive and co-founder Luis von Ahn stated, “We believe this offers great value to our users and can unlock benefits for us over time as we can apply the things that make our language app fun, engaging, and effective to these new courses.”
Duolingo’s unexpected profitability and remarkable increase in revenue clearly demonstrate its strong position in the language-learning market. With its continued dedication to diversification and user satisfaction, the platform is poised for further growth and success.
