Duolingo Jumps After Quarterly Revenue, User Growth Top Estimates
The language-learning company's shares rose about 10% in after-hours trading after third-quarter revenue and monthly users beat Wall Street forecasts.
Duolingo shares jumped about 10% in after-hours trading Tuesday after the language-learning company reported third-quarter revenue and monthly active users above Wall Street expectations, according to CNBC.
Revenue reached $309 million, ahead of the $303 million consensus estimate compiled by LSEG. The company's shareholder letter put revenue growth at 14% from a year earlier.
Monthly active users reached 153.1 million, up 13% year over year. CNBC reported that analysts had expected about 149 million monthly users.
Daily active users rose 29% to 64.9 million, while paid subscribers increased 14% to 13.1 million at quarter-end. Duolingo said daily-user growth accelerated for a second consecutive quarter.
Adjusted earnings before interest, taxes, depreciation and amortization came to $78.7 million, with a margin of 25.5%. CNBC said the margin beat expectations, though the company's figures show adjusted EBITDA fell 2% from a year earlier.
The company said it was seeing results from its focus on teaching quality and user growth. Tuesday's stock move was in extended trading, rather than the regular market session.