Duolingo exceeded its second-quarter earnings projection after using artificial intelligence to add 148 new languages and more daily users. Photo by Duolingo
The free language-learning app Duolingo grew by nearly a third in value during Thursday’s stock trading after its second-quarter earnings exceeded expectations.
Duolingo shares are traded on the NASDAQ stock exchange under the DUOL symbol and reached a high of $465.35 during morning trading but declined to a low of $386.89 in the afternoon.
The stock was selling for $397.35 and fluctuating with about an hour left in Thursday’s trading, which was a gain of more than $53 and about 15.5%.
“We exceeded our own high expectations for bookings and revenue this quarter and did it while expanding profitability,” Duolingo Chief Executive Officer Luis von Ahn said in a news release.
Duolingo reported adjusted earnings per share of 91 cents as revenues rose by 41% to $252.3 million during the second quarter, according to Investopedia.
Analysts had estimated adjusted earnings per share of 58 cents and $240.8 million in revenue for the quarter.
Duolingo has adjusted its third-quarter earnings forecast to reflect its recent results.
The tech firm projects third-quarter earnings of between $257 million and $261 million and its annual earnings to between $2.01 billion and $1.02 billion.
Its prior annual earnings projection was between $987 million and $996 million.
Von Ahn credits the second quarter’s financial results to “product-led growth, a delightful learning experience and fast iteration.”
The tech firm “made real progress this quarter on initiatives that we believe will fuel the long-term success of our business,” he added.
Duolingo also reported about 48 million daily active users at the end of the year’s second quarter, which is a 40% increase from 34 million a year ago, CNBC reported.
The second-quarter’s numbers exceeded expectations despite receiving criticism for replacing its contract workers with artificial intelligence.
Adding generative AI to Duolingo’s mix enabled to company to add 148 language courses to its offerings as it became what Ahn in April called an “AI-first company,” according to a TechCrunch report.
“Without AI, it would take us decades to scale our content to more learners,” Ahn said in April. “We owe it to our learners to get them this content ASAP.”
