Duolingo posts record Q4 revenue as demand for digital language learning soars
Shares dipped slightly after-hours despite results and an upbeat forecast.
Duo’s back on the map.
The company’s fourth-quarter revenue came in at an all-time high of $209.6 million, easily topping Wall Street’s estimates of $205.3 million. Daily active users also landed in line with expectations, hitting a record 40.5 million. Meanwhile, subscription bookings soared 50% from the same quarter last year, reaching $236.5 million for the first time.
Earnings per share weren’t disclosed, but are likely to land in a securities filing on Friday.
Go deeper: Our interview with Duolingo CEO Luis von Ahn.
Still, shares were down nearly 3% in after-hours trading. The dip comes after a strong 13% gain over the past month.
Duolingo offers both free and paid premium-tier accounts, with 40 languages to learn, including Korean, French, German, and even fictional languages like High Valyrian from “Game of Thrones.” The company highlighted its new video call feature as a key driver of success for its paid premium tier, since it helps bridge a critical gap of practicing speaking skills.
Duolingo’s popularity has soared in recent years thanks in part to its viral fame on TikTok, where it has nearly 17 million followers.
The company has also heavily leaned into AI, beefing up its premium subscriptions with new ChatGPT-powered features like personalized language lessons, real-time translations, and interactive chatbots. The effort is paying off: Duolingo’s paid subscribers have more than quadrupled since 2021.
Looking ahead, Duolingo expects first-quarter revenue to range between $220.5 million and $223.5 million, slightly above analysts’ estimates of $220.8 million.
