Duolingo Reports Strong Q1 Results, Raises Guidance
Portfolio Pulse from Erica Kollmann
Duolingo, Inc. (NASDAQ:DUOL) reported Q1 earnings of 57 cents per share, surpassing estimates by 111.11%, with sales of $167.6 million, a 44.91% increase year-over-year. Bookings rose to $197.5 million, with subscription bookings at $161.5 million. Paid subscribers reached 7.4 million, and DAUs were 31.4 million. The company raised its Q2 and full-year 2024 revenue guidance, citing strong growth and the potential of Duolingo Max and improved family plans. Despite the positive report, DUOL shares dropped 12.1% after-hours.
May 08, 2024 | 8:55 pm
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Duolingo reported strong Q1 results, beating earnings and sales estimates with significant growth in subscribers and user engagement. The company raised its future revenue guidance but saw a 12.1% drop in after-hours trading.
Despite Duolingo's strong Q1 performance and optimistic future revenue guidance, the after-hours stock price drop suggests market reactions may not always align with earnings outcomes. This discrepancy could be due to various factors, including market expectations, broader economic conditions, or profit-taking by investors after the announcement. The significant growth in subscribers and user engagement highlights Duolingo's strong market position and potential for future revenue growth, which could positively impact the stock in the longer term despite the short-term drop.
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IMPORTANCE 95
RELEVANCE 100