Duolingo Inc (NAS:DUOL)

Q4 2024 Duolingo Inc Earnings Call Transcript

Feb 27, 2025 / 10:30 PM GMT

Release Date Price: $375.78 (-2.79%)

Transcript 10-K8-K

Key Points

Positve

Duolingo Inc (DUOL) reported a record quarter with a 51% year-over-year increase in daily active users, reaching 40 million.
The company achieved its highest quarterly bookings, revenue, and adjusted EBITA, driven by strong Duolingo Max subscriptions and family plan momentum.
Duolingo Max, featuring a Gen AI-powered conversation feature, has seen meaningful user engagement and represents about 5% of total subscribers.
The family plan now accounts for 23% of total subscribers, showing higher retention and lifetime value than individual plans.
Duolingo Inc (DUOL) plans to leverage generative AI to improve content across language, math, and music courses, aiming for faster scaling and global reach.

Negative

Duolingo Inc (DUOL) anticipates a temporary 170 basis point year-over-year impact on gross margin in 2025 due to AI costs associated with Duolingo Max.
The company expects a more moderate pace of profit growth compared to the exceptional levels of the past two years.
AI costs are currently high, and while they are expected to decrease over time, they are not being optimized immediately.
Duolingo Inc (DUOL) faces challenges in pricing Duolingo Max in poorer countries, such as India, where the current price is considered too high.
Retention of resurrected users is not as strong as that of new users, indicating a need for improvement in user retention strategies.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DUOL.OQ - Duolingo Inc
Q4 2024 Duolingo Inc Earnings Call
Feb 27, 2025 / 10:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good evening everyone and welcome to Duolingo's 4th quarter and full year 2024 earnings webcast. Today, after market closed, we released this quarter shareholder letter, a copy of which you can find on our IR website at investors. Duolingo.com. On today's call, we have Luis Van On, our co-founder and CEO, and Matt Skuppa, our CFO. They'll begin with some brief remarks before opening the call to questions. Analysts can ask a question by using the raise hand feature, and please note that this event's being recorded and all attendees are in listen-only mode.

Just a reminder that we'll make forward-looking statements regarding future events and financial performance, which are subject to material risks and uncertainties. Some of these risks have

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