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Duolingo (DUOL) Earnings Report: What to Expect

7 months agoUS
Duolingo (DUOL) Earnings Report: What to ExpectSource: bloomberg.com
Language-learning app Duolingo (NASDAQ:DUOL) is set to report its earnings this Wednesday after the bell. Investors and analysts are keen to see if the company can continue its impressive growth trajectory. Here's a preview of what to expect from the report.

Key Insights

Duolingo's previous quarter saw them beat analysts’ revenue expectations by 4.8%, reporting $252.3 million, a 41.5% year-on-year increase. This included exceeding EBITDA estimates and full-year EBITDA guidance.

The company reported 128.3 million users, up 23.8% year on year. Why this matters: User growth is critical for Duolingo's long-term success as it indicates the platform's expanding reach and potential for increased monetization.

For the upcoming quarter, analysts expect revenue to grow 35.3% year on year to $260.6 million, with adjusted earnings expected at $1.59 per share.

Duolingo has consistently exceeded Wall Street’s expectations, beating revenue estimates every time over the past two years by an average of 2.5%.

In-Depth Analysis

Duolingo's performance is being closely watched in the context of the broader consumer subscription segment. Roku, for example, recently delivered year-on-year revenue growth of 14%, while Udemy reported flat revenue. However, the consumer subscription group has generally underperformed, with share prices down 4.2% on average over the last month.

Duolingo's stock is down 16.8% during the same period, heading into earnings with an average analyst price target of $442.74 (compared to the current share price of $266.59). This sets the stage for a potentially volatile reaction to the earnings report, depending on whether the company can meet or exceed expectations.

FAQs

Q: What revenue did Duolingo report last quarter?

Duolingo reported revenues of $252.3 million last quarter, up 41.5% year on year.

Q: What are analysts expecting for this quarter's revenue?

Analysts are expecting Duolingo’s revenue to grow 35.3% year on year to $260.6 million.

Key Takeaways

Duolingo's user base and revenue growth remain strong indicators of its market position.

The company's history of exceeding expectations suggests potential for a positive surprise in the upcoming earnings report.

Keep an eye on the stock's reaction, as it could be significantly impacted by the earnings results and guidance.

Discussion

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