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Duolingo Q3 daily active users accelerated to 29% on gains in every region; shares soar

By Reuters News


Overview

  • US language learning app's Q3 daily active users grew 29% yr/yr, with strong user growth globally

  • Q3 adjusted EPS was $0.54

  • Company attributes results to global user growth and focus on teaching quality

  • Shares of the company were up about 10% in extended trading


Outlook

  • Company plans to focus on growing bookings while maintaining quality of free experience

  • Company aims to expand user base towards one billion learners

  • Company will continue prioritizing teaching quality and user growth


Result Drivers

  • USER GROWTH - Co said global daily active user growth accelerated to 29% yr/yr, driving financial results

  • TEACHING QUALITY - Co said prioritizing teaching quality contributed to improved user engagement and results

  • BROAD REGIONAL GROWTH - Co said user growth was strong across all regions and subjects


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.54


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 17 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy."

  • Wall Street's median 12-month price target for Duolingo, Inc. is $135.00, about 0.2% below its November 2 closing price of $135.27

  • The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 44 three months ago


Reuters Recommended Reads

  • Nov 2 - India needs equity capital, finance minister says amid tax relief calls

  • Nov 3 - Retailer Zalando beats quarterly sales expectations as it taps on AI agents

  • Nov 3 - Shopify Q3 revenue rises 32%, GMV hits $119 bln


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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