Latest news with #DuolingoInc
Yahoo
3 days ago
- Business
- Yahoo
Should Schwab U.S. Small-Cap ETF (SCHA) Be on Your Investing Radar?
The Schwab U.S. Small-Cap ETF (SCHA) was launched on 11/03/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market. The fund is sponsored by Charles Schwab. It has amassed assets over $17.11 billion, making it one of the largest ETFs attempting to match the Small Cap Blend segment of the US equity market. Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk. Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics. When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal. Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 1.58%. Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Financials sector--about 18.90% of the portfolio. Industrials and Information Technology round out the top three. Looking at individual holdings, Duolingo Inc Class A (DUOL) accounts for about 0.56% of total assets, followed by Affirm Holdings Inc Class A (AFRM) and Reddit Inc Class A (RDDT). The top 10 holdings account for about 3.48% of total assets under management. SCHA seeks to match the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Small-Cap Total Stock Market Index includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The ETF has lost about -3.58% so far this year and is up roughly 6.07% in the last one year (as of 06/09/2025). In the past 52-week period, it has traded between $20.42 and $28.32. The ETF has a beta of 1.11 and standard deviation of 22.31% for the trailing three-year period, making it a medium risk choice in the space. With about 1718 holdings, it effectively diversifies company-specific risk. Schwab U.S. Small-Cap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SCHA is an excellent option for investors seeking exposure to the Style Box - Small Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well. The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $62.92 billion in assets, iShares Core S&P Small-Cap ETF has $78.18 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schwab U.S. Small-Cap ETF (SCHA): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
08-05-2025
- Business
- Yahoo
Duolingo (NasdaqGS:DUOL) Reports Q1 Sales Climb To US$231 Million
Duolingo has seen a remarkable price increase of 67% over the past month, coinciding with several key developments. The company reported strong Q1 earnings, with sales climbing to USD 231 million and net income reaching USD 35 million, reflecting a healthy financial performance. Additionally, Duolingo executed its largest-ever content expansion, launching 148 new language courses utilizing generative AI to speed development. These factors demonstrate the company's robust operational and product growth, which aligns well with the broader market's positive momentum, seen by the Nasdaq's 2% rise during recent weeks amid favorable global economic developments. Every company has risks, and we've spotted 2 warning signs for Duolingo you should know about. Find companies with promising cash flow potential yet trading below their fair value. The recent developments involving Duolingo's strong Q1 earnings and substantial content expansion are significant catalysts that could impact future revenue and earnings forecasts. The introduction of 148 new AI-driven language courses is likely to boost user engagement and subscriber retention, potentially increasing revenue streams. With analysts anticipating annual revenue growth of 23.5%, these initiatives could enhance the company's ability to achieve these forecasts. Over a three-year period, Duolingo has achieved a remarkable total shareholder return of over 686.60%, reflecting a strong growth trajectory. In the context of the past year, Duolingo's impressive returns have outpaced the US market's 7.7% gain and the US Consumer Services industry's 13.7% rise, underscoring its exceptional performance. While the current share price move of 67% is notable, bringing it to $385.13, it sits close to the consensus analyst price target of $382.35, a 0.7% difference. This indicates that the current market valuation may align with what analysts consider fair, assuming the business can achieve the projected earnings and revenue targets. Assess Duolingo's future earnings estimates with our detailed growth reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:DUOL. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
08-05-2025
- Business
- Bloomberg
Duolingo Backlash Is Lesson in Communicating About AI
Analyzing trends in leadership, management and the art of career building. Business leaders are getting an education from Duolingo Inc. on what can happen when companies talk about replacing human labor with artificial intelligence.
Yahoo
02-05-2025
- Business
- Yahoo
Duolingo Inc (DUOL) Q1 2025 Earnings Call Highlights: Strong User Growth and AI-Driven Expansion
Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Duolingo Inc (NASDAQ:DUOL) reported strong growth in daily active users (DAUs), with a 49% year-over-year increase, indicating robust user engagement. The company successfully launched 148 new language courses using AI, significantly speeding up content creation compared to previous years. Duolingo Inc (NASDAQ:DUOL) is expanding its offerings with new subjects like chess, math, and music, which are already being monetized similarly to language learning. AI is playing a transformative role in Duolingo Inc (NASDAQ:DUOL)'s operations, enhancing content creation, feature development, and overall efficiency. The company is seeing positive trends in its Duolingo Max subscription, which now accounts for 7% of subscribers, contributing to strong financial performance. Despite the growth in new subjects, they remain significantly smaller in scale compared to language learning, limiting their immediate impact on revenue. Duolingo Inc (NASDAQ:DUOL) faces challenges in converting users in low GDP per capita regions, affecting overall monetization potential. The company anticipates a 150 basis point decline in gross margin year-over-year, with some sequential declines expected in the second quarter. Pricing for Duolingo Max remains high in certain markets like India, potentially limiting adoption until costs can be reduced. The company acknowledges that it will take time, potentially years, for word of mouth to significantly boost the adoption of its intermediate and advanced English content. Warning! GuruFocus has detected 6 Warning Signs with DUOL. Q: Could you discuss the cadence of gross margin for the year and expectations for the second quarter? A: Matthew Skaruppa, CFO: We expect a 150 basis point decline year-over-year in gross margin. Q1 performed better than expected with a 200 basis point decline instead of the anticipated 300. For Q2, we foresee a 50 basis point sequential decline compared to Q1, with improvements expected in Q3 and Q4, bringing us back to the levels at the end of last year. Q: What are your expectations for the new language modules like chess, music, and math in terms of engagement and monetization? A: Luis Von Ahn, CEO: We're excited about these modules, especially chess, which will soon be live. Initially, these are aimed at increasing user engagement, as there's significant demand. We are monetizing these subjects similarly to language learning, through subscriptions that remove ads. While they are smaller compared to language learning, they are growing well. Q: Are you seeing any macroeconomic softness affecting your business, and how is GenAI impacting your product development? A: Matthew Skaruppa, CFO: We haven't observed any significant macroeconomic impact on our metrics. Our global presence and value proposition help maintain stability. Luis Von Ahn, CEO: GenAI is transformative for us, aiding in content creation, new feature development, and operational efficiencies. It allows us to produce content faster and cheaper, enhancing our product offerings. Q: Can you provide an update on retention trends for Duolingo Max and the expansion of language courses? A: Matthew Skaruppa, CFO: Max accounts for about 7% of subscribers, with retention rates as expected. Luis Von Ahn, CEO: We've added 148 new language courses using AI, significantly speeding up content creation. These courses fill gaps in our offerings, allowing more users to learn popular languages from different base languages. Q: How are you approaching the pricing and packaging of your subscription tiers, and what have you learned from recent tests? A: Luis Von Ahn, CEO: We continuously test pricing and packaging across different geographies. Recently, we increased the price for new Super Duolingo users based on test results. We may adjust features between tiers, such as moving less costly features from Max to Super or even free, but no changes have been finalized yet. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
The Star
01-05-2025
- Business
- The Star
Duolingo more than doubles courses as 'AI-first' push draws heat
Even by Silicon Valley standards, Duolingo Inc has set itself apart with its aggressive push to infuse artificial intelligence into all corners of its business while also openly acknowledging humans may no longer be needed for certain roles. On April 29, Duolingo signalled that approach is helping to rapidly expand its language-learning courses, even as it puts the company at the center of a white-hot debate over AI's impact on the labor market and the quality of the work the technology produces. The company is launching 148 new courses it developed with the help of generative AI, more than doubling its foreign-language courses for non-English speakers in a year. Specifically, speakers of Spanish, Portuguese and European tongues can now learn Japanese, Korean and Chinese. And people who speak Asian languages can learn the most popular non-English languages. The new courses will primarily support beginner levels, with more advanced content to be introduced throughout the year. The new offerings mark the company's largest content expansion and would help it reach more than a billion potential learners globally, the company added. "It took about 12 years to develop our first 100 courses,' co-founder and chief executive officer Luis von Ahn said in a statement to Bloomberg News. "With the help of AI, we're able to create new content that can improve how people learn at a scale and speed we've never seen before.' The announcement comes two days after the company publicised a companywide email from von Ahn, who called Duolingo's use of AI to accelerate content creation "one of the best decisions we made recently', even if it means taking "occasional small hits on quality'. Last January, Duolingo cut 10% of contract roles to accompany the shift, and von Ahn continued to double down on what he calls an "AI-first' strategy that aims to reduce repetitive tasks. He said other parts of the business will need to increase their AI usage, while the company will "gradually stop' using contractors to do work that artificial intelligence can handle. Headcount will only be allotted when a team cannot automate more of their work, he added. While the company's AI investments cut into its gross margins in the fourth quarter, that was "near-term pain,' as a Needham analyst described it at the time, which some bullish investors were willing to accept. The company also said that new AI-powered paid features helped add net subscribers at a record pace, contributing to a better-than-expected sales outlook for the year. (The company is set to report first-quarter results on Thursday.) But some users are pushing back against the AI shift and have expressed frustration at the company's preference for quantity over quality, going so far as to threaten cancelling their subscriptions. "This makes me sad because I've noticed the changes in the app and they're not good,' one LinkedIn commenter wrote in response to the company's post. "Speaking and writing exercises are marking my answers wrong when they never were before. The Japanese course was so much better before you guys overhauled it with this AI mess. Bring back the humans.' "I'm getting more and more dissatisfied with all the unnatural sentences and lack of 'real life situation' content and conversations too,' another wrote. A spokesperson for Duolingo said contractors are still involved in content creation work, particularly in language specialist roles. "We rigorously test all content, AI or human-generated, and there's no evidence that AI leads to more mistakes.' "Most learners can't tell whether a sentence was written by a human or an AI and we're not seeing any notable activity around subscription cancelations,' the spokesperson said. "Our fun, distinctive style isn't going anywhere, and it's even part of how we prompt AI for content generation.' The spokesperson also said there are no plans to reduce contractor headcount "immediately', adding that the company will work with each business function "to understand the opportunity and timeline for each team'. Duolingo employees have been using models like OpenAI's GPT to create curriculums since 2023, but investments into "shared content systems' were also key to the ramp-up in course materials, Head of AI Klinton Bicknell said in an interview. That means that the content in say, an English class, will be the same regardless of what language you decide to learn it in. Previously, the English course for French speakers was developed separately from that for Spanish speakers, he said. "In the past, when this was mostly human driven, we had real trade-offs between, well, is it better to take the human resources that we have and deploy that to creating another course that is really in high demand, or better to iterate on a current course that we already have out there?' Bicknell said. "But in an AI world, we can do both.' Instead of making humans do all quality reviews, the company is having workers create the data that train AI to do more validations, Bicknell said. That's changed the composition of the content creation team. In addition to the existing learning scientists who iterate upon what the AI produces, the company has added more engineers and AI researchers who set parameters for the AI to evaluate content. The company is "continually evaluating a lot of different models' besides OpenAI's, including some from Anthropic, Google and some open-source options, to determine which ones are best for a given task. For example, the team found that Anthropic's Claude was "much better' at doing certain types of math when creating content for its relatively new math curriculum, Bicknell said. Generative AI has also helped Duolingo venture into new subject areas. Its new chess course, launched in beta for some iOS users last week, grew out of a prototype created by two non-engineers – a product manager and a designer – using the Cursor AI coding tool. The manpower behind that course has since grown to include engineers, and its development continues to be AI-intensive because the technology will be necessary for the computer opponent to learn and match the skill level of a user. – Bloomberg
