Duolingo (NASDAQ:DUOL) shares jumped by nearly 21% in the early session today after the mobile learning platform reported robust numbers for the fourth quarter. Revenue soared by 45.4% year-over-year to $151 million, surpassing expectations by $2.6 million. Similarly, EPS of $0.26 handily exceeded estimates by $0.22.
The quarter was marked by a 65% jump in Duolingo’s daily active users. Further, its monthly active users increased by 46% to 88 million. The company saw its total bookings soar by 51% to $191 million.
The improved user metrics helped Duolingo post a net income of $12.1 million for the quarter. In comparison, it had incurred a net loss of $13.9 million in the year-ago period. Going forward, the company plans to maintain a focus on expanding its user base globally.
For the upcoming quarter, Duolingo expects revenue in the range of $164 million to $167 million. Adjusted EBITDA is seen landing between $35.3 million and $37.6 million. For Fiscal Year 2024, DUOL estimates revenue of $717.5 million to $729.5 million. Importantly, adjusted EBITDA for the year is pegged at $154.3 million to $171.4 million. In comparison, it generated an adjusted EBITDA of $93.7 million in Fiscal Year 2023.
Is DUOL a Good Stock to Buy?
Today’s price gains further add to the nearly 76% jump in Duolingo’s share price over the past year. Overall, the Street has a Hold consensus rating on the stock alongside an average price target of $195. However, analysts’ views on Duolingo could see a revision following its earnings report.
Read full Disclosure
