Latest news with #DuolingoInc
Reuters
4 days ago
- Business
- Reuters
Duolingo raises 2025 revenue forecast as AI tools boost user engagement
Aug 6 (Reuters) - Language-learning app Duolingo (DUOL.O), opens new tab raised its annual revenue forecast and beat second-quarter revenue estimates on Wednesday, anticipating broader adoption of its AI-enhanced subscription tier among its global user base. The company's shares rose about 20% in trading after the bell. Duolingo operates on a freemium model, offering basic language-learning features for free while providing premium capabilities through monthly or annual paid subscriptions. The company now expects revenue for 2025 to be in the range of $1.01 billion to $1.02 billion, compared to analysts' estimates of $996.6 million. It had earlier projected revenue between $987 million and $996 million for the year. Revenue in the April-June period was $252.3 million, compared with analysts' estimates of $240.7 million. Duolingo's two subscription tiers — Super, designed for frequent learners, and Max, tailored for advanced users — include AI-driven features such as video-call conversation practice with chatbots, personalized error analysis and enhanced feedback tools. Since launching an AI-powered video-call tool for Android in January, Duolingo has expanded the feature to additional languages, aiming to boost subscription growth by enabling users to practice natural conversations across a broader linguistic range. Duolingo's gross margin benefited this quarter from lower-than-expected AI costs, as the decline in margin from expanding Max and AI features was much smaller than the company had originally expected. "The cost of calling AI tools has come down a lot. Ads also did better; ads are not a big part of our business, but it turned out that it helped margin a little bit as well," CFO Matt Skaruppa told Reuters. Duolingo leverages generative AI to create and personalize bite-sized lessons across more than 100 language courses. In April, CEO Luis von Ahn said that after taking 12 years to develop the first 100 courses, the company's AI tools helped it introduce 148 new courses in roughly one year. Duolingo expects revenue for the third quarter to be in the range of $257 million to $261 million, compared to analysts' estimates of $253 million, according to data compiled by LSEG. The firm also forecast an adjusted core profit of $288.1 million to $295.5 million for 2025.
Yahoo
29-07-2025
- Business
- Yahoo
Duolingo, Inc. (DUOL) Stock Sinks As Market Gains: What You Should Know
In the latest close session, Duolingo, Inc. (DUOL) was down 6.48% at $340.49. The stock fell short of the S&P 500, which registered a gain of 0.02% for the day. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.33%. Heading into today, shares of the company had lost 11.47% over the past month, lagging the Business Services sector's gain of 1.39% and the S&P 500's gain of 4.93%. The investment community will be closely monitoring the performance of Duolingo, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. It is anticipated that the company will report an EPS of $0.55, marking a 7.84% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $240.54 million, reflecting a 34.89% rise from the equivalent quarter last year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.9 per share and a revenue of $995.83 million, indicating changes of +54.26% and +33.13%, respectively, from the former year. Investors should also pay attention to any latest changes in analyst estimates for Duolingo, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.25% downward. Duolingo, Inc. presently features a Zacks Rank of #4 (Sell). In terms of valuation, Duolingo, Inc. is presently being traded at a Forward P/E ratio of 125.67. Its industry sports an average Forward P/E of 21.34, so one might conclude that Duolingo, Inc. is trading at a premium comparatively. It is also worth noting that DUOL currently has a PEG ratio of 2.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 1.6 as of yesterday's close. The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. 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 Duolingo, Inc. (DUOL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Don't Sweat Duolingo Stock's June Doldrums
The shares of language learning platform Duolingo Inc (NASDAQ:DUOL) are down 2.7% at $411.54 at last glance, looking to extend their recent slide. hung around its May 14 record high of $544.93 for a few weeks before beginning a sharp descent lower, marking only three positive days since June 6. On the side of the bulls, however, DUOL is still up 26.9% in 2025, and currently flashing a historically bullish signal. Per Schaeffer's Senior Quantitative Analyst Rocky White, the recent pullback has Duolingo stock within striking distance of its 80-day moving average. More specifically, the stock is within 0.75 of the trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months above it. Within these parameters, six other signals occurred in the past three years. DUOL was higher one month later 67% of the time after those instances, averaging a large 15.7% gain. A move of similar magnitude would have the shares back up above $476, recovering a good portion of its recent losses. Also in the stock's favor, its 14-day relative strength index (RSI) of 13.2 sits firmly in "oversold" territory, pointing to a potential short-term bounce. An unwinding of pessimism amongst options traders could provide tailwinds as well, per DUOL's 50-day put/call volume ratio of 1.83 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 98% of readings from the past year.
Yahoo
09-06-2025
- 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
