Duolingo Inc. (DUOL) saw its stock rise 7% in after-hours trading Tuesday, following a 2% increase earlier in the day to close at $90.79. This was in response to the company’s impressive fourth-quarter results and outlook, which beat Wall Street expectations.
Duolingo, a language-learning app, reported a net loss of $13.9 million, or 35 cents per share, for the fourth quarter. This was a decrease from the year-ago period, where the company reported a loss of $17.5 million, or 46 cents per share. Revenue rose to $103.8 million from $73 million in the same period the previous year.
Analysts surveyed by FactSet had forecast an adjusted loss of 35 cents per share on revenue of $99.9 million. Duolingo did not provide adjusted earnings.
The company’s strong performance can be attributed to the increasing popularity of its language-learning app. The app has seen a surge in users since the beginning of the pandemic, as people have had more time to invest in learning new skills.
Duolingo’s user base has grown to 300 million users, up from 250 million in the third quarter. The company also reported that its average revenue per user rose to $0.35 from $0.27 in the third quarter.
Duolingo’s strong performance can also be attributed to its success in monetizing its platform. The company has been able to generate revenue from its subscription service, Duolingo Plus, as well as from advertisements.
In addition, Duolingo has been able to increase its revenue by expanding its product offering. The company recently launched a new product, Duolingo ABC, which is an app designed to help children learn to read. The company is also working on a new product, Duolingo English Test, which will help people demonstrate their English proficiency.
Duolingo also announced that it plans to invest more in its product offering and marketing efforts. The company plans to expand its product offering and continue to focus on developing new products to meet the needs of its growing user base.
In addition, Duolingo plans to invest in marketing and advertising efforts to increase its user base and drive more revenue. The company is also investing in its technology infrastructure to ensure it can handle the increased demand for its services.
Overall, Duolingo’s impressive fourth-quarter results and outlook have been well-received by investors. The company’s strong performance and plans for future growth have helped to boost its stock price. With its growing user base, product offering, and marketing efforts, Duolingo looks to be in a strong position to continue its success in the future.
