11 Sources
[1]
The backlash against Duolingo going 'AI-first' didn't even matter | TechCrunch
Duolingo announced on Wednesday that it beat its quarterly revenue estimates, even though the company faced widespread backlash for choosing to embrace generative AI over human workers. Duolingo stock rose almost 30% on the news. In April, CEO Luis von Ahn shared that Duolingo would become an "AI-first" company, phasing out its use of contract workers. He also discouraged teams from hiring more employees, unless if the team is unable to automate more of its work. With the use of generative AI, Duolingo introduced 148 new language courses, more than doubling its previous offerings. "Without AI, it would take us decades to scale our content to more learners," von Ahn wrote at the time. "We owe it to our learners to get them this content ASAP." While some Duolingo users have argued that these AI features are making the app worse, the company's financial metrics tell a different story. Now, the company anticipates making over $1 billion in revenue this year, and daily active users have grown 40% year over year. The growth is significant, but falls in the lower range of the company's estimates of growing between 40-45%, which an investor brought up to von Ahn on Wednesday's quarterly earnings call.. "The reason we came [in] towards the lower end was because I said some stuff about AI, and I didn't give enough context. Because of that, we got some backlash on social media," von Ahn said. "The most important thing is we wanted to make the sentiment on our social media positive. We stopped posting edgy posts and started posting things that would get our sentiment more positive. That has worked." On TikTok, the top comments on Duolingo's videos often remain criticisms of the company's AI approach. Snarky commenters will ask if videos with multiple people in them are made with AI, to which Duolingo will reply, "Nope. Made by our great team!" But even if public sentiment has shifted toward Duolingo, its bottom line has not... and from the company's perspective, that's what matters.
[2]
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. Reporting by Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Akash Sriram Thomson Reuters Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.
[3]
Duolingo surges as AI-led growth, forecast raise boost investor confidence
Aug 7 (Reuters) - Duolingo (DUOL.O), opens new tab shares surged nearly 30% before the bell on Thursday, after its annual forecast increase buoyed investor confidence in its ability to drive user growth through AI features and social engagement, while enhancing monetization. The company is maintaining user growth by experimenting with app features, using social engagement strategies and optimizing its subscription offerings to retain users and attract new ones. Duolingo runs experiments to determine which of its subscriptions are shown to which user and when, with the goal of maximizing long-term platform value rather than pushing any single plan. Average revenue per user grew 6% in the second quarter, driven largely by users migrating to Duolingo's higher-priced Max tier, which offers features such as AI-powered video calls for practicing conversational skills. It also saw growth in its $12.99-per-month Super plan. "While we maintain a more cautious stance on near-term user growth, we see several sources of upside still in the model, most notably across monetization efforts (price and improving paid conversion) and margins," Raymond James analysts said in a note. Duolingo's gross margin declined 100 basis points during the quarter, less than the 300-basis-point fall it had anticipated, due to lower-than-expected AI costs and stronger performance in ads business. "We did better on gross margin, in part because AI costs that power Max were lower than we expected, the cost of calling AI tools has come down a lot," Chief Financial Officer Matt Skarupa told Reuters. The company posted adjusted profit per share of 91 cents, surpassing analysts' estimate of 58 cents, prompting them to boost earnings expectations. It is set to add roughly $4.6 billion to its $15.62 billion market valuation, if premarket levels hold. Still, as of Wednesday's close, Duolingo shares traded at 85.21 times profit expectations before the results, above internet services companies such as Uber's 26.54 and DoorDash's 79.38. Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Akash Sriram Thomson Reuters Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.
[4]
Duolingo stock skyrockets 30% on boosted guidance as AI powers user growth
A Duolingo logo is seen on a smartphone.Pavlo Gonchar | LightRocket | Getty Images Duolingo shares skyrocketed more than 30% after the language learning platform boosted its guidance due to strong user growth driven by artificial intelligence. The mobile learning platform hiked its full-year guidance to between $1.01 billion and $1.02 billion, up from a prior range of $987 million to $996 million. Duolingo also lifted its bookings guidance to between $1.15 billion and $1.16 billion. "We exceeded our own high expectations for bookings and revenue this quarter, and did it while expanding profitability," said co-founder and CEO Luis von Ahn in a release. Daily active users jumped 40% to nearly 48 million from about 34 million in the year-ago period.
[5]
Duolingo stock soared above 25% as AI fuels its user growth
Duolingo's stock soared in early trading Thursday after the language-learning platform reported earnings that far surpassed Wall Street's expectations, driven by user growth attributed to its AI features. At its peak this morning, Duolingo's stock surged 35%. As of about 1:30 p.m. Eastern, its price was up 17%. Duolingo reported in its second-quarter earnings on Wednesday a 40% jump in daily active users compared to a year ago, plus a 37% rise in paid subscribers from last year. Its revenue increased 41% year-over-year to $252.3 million. Plus, the company said it had lower-than-anticipated costs for its AI. "We believe we're still early in our user growth journey," co-founder and CEO Luis von Ahn said in a release. "We've delivered innovation while growing profitability -- through strong performance across all subscription tiers, continued investment in our core product, and new subjects that help us increase engagement." "The goal for us to use AI is to teach better and to reach more users and have more content," von Ahn said in an earnings call. In April, Duolingo's account shared an email from von Ahn to employees on Linkedin that stated the company would be "AI-first." "To teach well, we need to create a massive amount of content, and doing that manually doesn't scale," von Ahn wrote. "One of the best decisions we made recently was replacing a slow, manual content creation process with one powered by AI. Without AI, it would take us decades to scale our content to more learners." He also referenced Duolingo's newer video-call feature before further outlining how the company would incorporate more AI into its workflow, such as replacing contractors with AI, looking for AI skills in hiring and in performance reviews, and more. The post received hundreds of comments, mostly negative. Von Ahn said in the company's earnings call that he didn't give enough context on the post. Duolingo had announced its new AI-powered video call feature, as well as an AI adventures feature, back in September of last year. In 2023, the company announced Duolingo Max, a subscription-based experience in the app that gives users access to AI-powered features. Its earnings showed that Max has had "significant traction" since becoming fully available to users less than a year ago. The company said that its research shows its video call feature is improving users' speaking skills. "Looking ahead, we have an exciting roadmap which includes making calls more engaging through gamification, interactive backgrounds, and longer sessions for learners who can handle them," Duolingo said. Due to its unexpected success last quarter, the learning platform is updating the midpoint of its full-year guidance. It raised its bookings guidance to 32% year-over-year and its adjusted EBITDA margin to 28.75%.
[6]
All that backlash against Duolingo going 'AI-first' didn't slow its growth: Why DUOL stock is soaring 24% right now
At least one company's bet on AI appears to be paying off -- for now. Language-learning platform Duolingo reported earnings results for the second quarter of 2025 on Wednesday after the market closed, and the numbers were eye-opening. The company's revenue increased 41% year-over-year to more than $252.3 million, and net income tallied $44.8 million, up 84%. Its number of paid subscribers was up to 10.9 million from 8 million a year ago, and its daily active users neared 48 million, up from 34 million last year. "I'm happy to report another quarter of great results, driven by product-led growth, a delightful learning experience, and fast iteration," wrote Luis von Ahn, Duolingo's co-founder and CEO, in a letter to shareholders. "Our user growth and engagement remain strong, and our subscription performance and profitability exceeded expectations." Von Ahn also thinks there's plenty of room to grow ahead, too, especially as AI is helping boost user engagement and profitability.
[7]
After Betting on AI, Duolingo Just Made a Surprising Announcement
Language-learning app Duolingo 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 percent 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. (Reporting by Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi) The final deadline for the 2025 Inc. Power Partner Awards is this Friday, August 8, at 11:59 p.m. PT. Apply now.
[8]
Meet the Unstoppable Artificial Intelligence (AI) Stock That Doubled Over the Past 12 Months (Hint: Not Palantir or Nvidia) | The Motley Fool
The world's largest digital language education platform just delivered another stellar set of operating results. When investors think of surging artificial intelligence (AI) stocks, Palantir Technologies and Nvidia are probably the first two that come to mind. Palantir is a leader in AI software and its stock is up by a whopping 530% over the last 12 months. Nvidia supplies the world's best AI data center chips and its stock has climbed by 74% over the same period. But more and more companies are using AI to supercharge their legacy businesses. Duolingo (DUOL -5.18%), for instance, operates the world's largest digital language education platform, and it offers a growing portfolio of AI features designed to accelerate the learning experience. Its stock has more than doubled over the past year on the back of the company's stellar operating results, which have been boosted by AI. Is there still time to buy Duolingo stock? Read on to find out. Duolingo owes its success to its mobile-first, gamified approach to education. It takes learning out of the classroom and places it at the fingertips of anyone with a smartphone, enabling them to move at their own pace. Duolingo had more than 128 million monthly active users during the second quarter of 2025 (ended June 30), which was a 24% increase from the year-ago period. The platform monetizes them in two ways: It shows ads to free users, and it sells subscriptions to those who want to unlock more features to accelerate their progress. A record 10.9 million users were subscribed in Q2, which was up 37% year over year. Duolingo Max is the platform's most expensive subscription tier, and it offers a growing list of AI features as a selling point. There is Explain My Answer, which provides users with personalized feedback after each lesson, and Roleplay, which uses a chatbot-style interface to help users practice their conversational skills in a language of their choice. Duolingo also launched a new tool for Max subscribers last year called Video Call, which features a digital avatar named Lily who helps users practice their speaking skills. Max subscribers represented a record 8% of the platform's total paying members during Q2, up from 7% in the first quarter just three months earlier. Its AI features are a step toward Duolingo's long-term goal to deliver a learning experience that rivals a human tutor, so expect penetration to continue to grow. Duolingo generated a record $252.3 million in revenue during Q2, which crushed even the high end of management's forecast of $241.5 million. The figure represented a 41% increase compared to the year-ago period, which marked an acceleration from the 38% growth the company delivered during the first quarter. Simply put, the business is carrying a ton of momentum right now. On the back of the strong Q2 result, management increased its full-year revenue forecast for 2025 to more than $1 billion. This would be the first year in the company's history that revenue crosses the billion-dollar milestone. Duolingo also delivered a blistering second quarter at the bottom line. The business generated $44.8 million in net income, which was up by an eye-popping 84% from the year-ago period. Not many tech companies can deliver accelerating revenue growth without burning truckloads of cash at the bottom line, so Duolingo's consistent (and growing) profitability is an incredibly impressive achievement, and it's a key reason for its soaring stock price. Duolingo's business is certainly firing on all cylinders right now, but investors will have to pay a premium if they want to own a slice. Its stock is trading at a price-to-sales (P/S) ratio of 20, which is a 22% premium to its long-term average of 16.4, dating back to when it went public in 2021: Since Duolingo is consistently profitable, investors can also value its stock using the price-to-earnings (P/E) ratio -- but it looks even more pricey by that metric. Based on the company's $2.40 in trailing-12-month earnings per share (EPS), its P/E ratio is currently an eye-popping 152.3. That makes the stock five times more expensive than the Nasdaq-100 technology index which trades at a P/E ratio of 32.9. The stock looks a little more attractive if it is valued based on its future potential EPS. Wall Street's consensus estimate (provided by Yahoo! Finance) suggests Duolingo could generate $6.64 in EPS during 2025, placing its stock at a forward P/E ratio of 55.7. Analysts then expect $8.34 in EPS during 2026, which translates to a forward P/E ratio of 44.4: The stock still isn't cheap on a forward basis, but investors who are willing to hold on to it for five years or more could still do well if they buy it at the current price, purely because the company's earnings are growing so quickly. Short-term investors who are looking for quick gains over the next 12 months or so should probably steer clear of Duolingo stock, but it could be an attractive buy for those with a longer-term outlook.
[9]
Duolingo surges as AI-led growth, forecast raise boost investor confidence
Duolingo shares surged nearly 30 per cent before the bell on Thursday, after its annual forecast increase buoyed investor confidence in its ability to drive user growth through AI features and social engagement, while enhancing monetization. The company is maintaining user growth by experimenting with app features, using social engagement strategies and optimizing its subscription offerings to retain users and attract new ones. Duolingo runs experiments to determine which of its subscriptions are shown to which user and when, with the goal of maximizing long-term platform value rather than pushing any single plan. Average revenue per user grew six per cent in the second quarter, driven largely by users migrating to Duolingo's higher-priced Max tier, which offers features such as AI-powered video calls for practicing conversational skills. It also saw growth in its US$12.99-per-month Super plan. "While we maintain a more cautious stance on near-term user growth, we see several sources of upside still in the model, most notably across monetization efforts (price and improving paid conversion) and margins," Raymond James analysts said in a note. Duolingo's gross margin declined 100 basis points during the quarter, less than the 300-basis-point fall it had anticipated, due to lower-than-expected AI costs and stronger performance in ads business. "We did better on gross margin, in part because AI costs that power Max were lower than we expected, the cost of calling AI tools has come down a lot," Chief Financial Officer Matt Skarupa told Reuters. The company posted adjusted profit per share of 91 cents, surpassing analysts' estimate of 58 cents, prompting them to boost earnings expectations. It is set to add roughly $4.6 billion to its $15.62 billion market valuation, if premarket levels hold. Still, as of Wednesday's close, Duolingo shares traded at 85.21 times profit expectations before the results, above internet services companies such as Uber's 26.54 and DoorDash's 79.38.
[10]
Duolingo Rides AI Momentum Into a New Growth Cycle After Q2 Blowout | Investing.com UK
Duolingo (NASDAQ:DUOL) stock skyrocketed more than 30% on Thursday, August 7, 2025, after the language learning platform delivered exceptional Q2 2025 earnings results that significantly exceeded expectations. The Pittsburgh-based company's surge was driven by artificial intelligence-fueled user growth and boosted financial guidance that impressed Wall Street analysts. CEO Luis von Ahn emphasized that the company "exceeded our own high expectations for bookings and revenue this quarter, and did it while expanding profitability," highlighting the transformative impact of AI implementation on the platform's growth trajectory. Duolingo's Q2 2025 financial performance demonstrated the power of artificial intelligence integration in driving user engagement and revenue growth. The company reported revenues of $252 million, representing a 41% year-over-year increase that beat Wall Street estimates of $241 million. Net income surged an impressive 84% from the previous year to approximately $45 million, or 91 cents per share, showcasing the company's ability to scale profitably while investing in AI-driven features. The most striking metric was the 40% jump in daily active users to nearly 48 million, up from about 34 million in the year-ago period. This remarkable growth was directly attributed to Duolingo's implementation of new artificial intelligence tools, including a video-call conversation practice feature for paying subscribers that enhances the learning experience. The AI integration represents a fundamental shift in how users interact with the platform, making language learning more conversational and personalized. Beyond traditional language courses, Duolingo has strategically expanded its offerings with new subjects like chess, demonstrating how AI can be leveraged across different educational domains. The company also announced the acquisition of London-based music gaming startup NextBeat, signaling its commitment to broadening its AI-powered educational ecosystem. This diversification strategy, powered by intelligent algorithms, positions Duolingo to capture a larger share of the digital learning market. The company's forward-looking guidance reflects confidence in its AI-driven growth strategy, with full-year revenue projections raised to between $1.01 billion and $1.02 billion, up from the prior range of $987 million to $996 million. Additionally, bookings guidance was lifted to between $1.15 billion and $1.16 billion, indicating strong subscription momentum fueled by AI-enhanced user experiences that increase engagement and retention rates. As of Thursday, August 7, 2025, at 11:39 AM EDT, Duolingo stock was trading at $438.47, representing a remarkable gain of $94.86 or 27.61% for the day. The stock opened at $445.40 and reached intraday highs near $468, demonstrating strong investor enthusiasm following the earnings announcement. With a market capitalization of approximately $19.935 billion, Duolingo has established itself as a major player in the software application sector. The company's recent performance has been nothing short of spectacular, with the stock up more than 34% year-to-date following Thursday's surge. Over the past year, DUOL has delivered extraordinary returns of 171.73%, significantly outpacing the S&P 500's 21.96% gain during the same period. The three-year return of 325.51% further underscores the company's consistent ability to drive shareholder value through innovation and market expansion. Key financial metrics reveal a premium valuation that reflects investor confidence in the company's growth trajectory. With a trailing P/E ratio of 216.04 and a forward P/E of 121.95, the stock trades at a significant premium, justified by its rapid growth and expanding market opportunity. The company maintains a strong balance sheet with $999.28 million in total cash and minimal debt, providing financial flexibility to invest in AI development and strategic acquisitions. Analyst sentiment remains overwhelmingly positive, with price targets ranging from $390 to $600, and an average target of $492.74, suggesting potential upside from current levels. The company's next earnings date is scheduled for November 5, 2025, when investors will look for continued evidence of AI-driven growth and user acquisition momentum. With 830 full-time employees and fiscal year ending December 31, Duolingo appears well-positioned to capitalize on the growing demand for AI-enhanced educational technology. *** Looking to start your trading day ahead of the curve?
[11]
Duolingo Stock Targets Up to $600 as Analysts Back AI-Driven Growth Story | Investing.com UK
Two years after the AI hype began, in early 2024, language-learning company Duolingo (NASDAQ:DUOL) cut 10% of contract workers as it shifted to AI-powered app content. In late April, Duolingo CEO Luis von Ahn doubled down, informing the workforce that all contract workers will be replaced by AI. Furthermore, he said the company will hire new employees only if existing teams prove unable to automate the workload. At present, Duolingo has 800 employees, each contributing $23 million in value to a total market cap of $18.43 billion. On Thursday, Duolingo released its Q2 2025 earnings report ending June, resulting in a 14% stock price increase for the week. Should investors take this opportunity to put DUOL on a close watchlist? Despite lingering confabulation problems, AI is at its best when dealing with language manipulation, as one would expect from large language models (LLMs). Simply put, AI predicts the next likely word in a sentence based on any given concept. This then forms a coherent output, typically proportional to the precision of the user's prompt. At a glance, this may seem bearish for Duolingo. After all, why wouldn't users just interact directly with major LLMs like ChatGPT, Grok, or Gemini to learn languages? Fortunately for Duolingo, that would require much greater user engagement and time spent on crafting their own lessons. Instead, the superior option is Duolingo's existing approach - having its own specialized Birdbrain LLM, honed to craft lessons and get better at it with each new instance. Birdbrain serves Duolingo's linguistic specialists as a great multiplier force, with humans selecting parameters such as difficulty level and grammar focus. Duolingo CEO Luis von Ahn made it clear that occasional hiccups can happen but that he would rather "take occasional small hits on quality than move slowly and miss the moment." Judging by Thursday's Q2 earnings report, this approach is fruitful. Much like recently covered Spotify (NYSE:SPOT), Duolingo runs a freemium business model, with a free basic version attractive enough to entice users into becoming paid subscribers. The company has successfully leveraged this model, having increased its paid subscribers by 37% to 10.9 million from 8 million in the year-ago quarter. Likewise, Duolingo's monthly active users (MAUs) increased 24% year-over-year, from 103.6 million to 128.3 million. For the first half of the year, this resulted in a net income of $79.9 million, up 55% from H1 2024. On a single quarterly basis, the company increased its net income by 84% year-over-year. More importantly, to expand AI operations and cut employee overhead, Duolingo now has a free cash flow position of $86.3 million, up 60% from the year-ago quarter. In particular, the company's Chess course launched in early June has been wildly successful, currently available on iOS but soon to deploy on Android. In addition to greater engagement via Chess and similar apps like Math and Music, the Video Call feature is also gaining traction. As a part of the highest Max subscription tier, Video Call is perhaps the most useful language learning tool, allowing for spontaneous video conversations in a low-pressure environment. Before AI, it was common for people to publish ads for this exact purpose of finding speakers for practice. Duolingo's own in-house research shows that Video Call consistently improves speaking skills over time. The rollout of new features also shows that Duolingo is well-versed in gamification systems. Namely, its Energy system released in early July is designed as users' "learning battery," whereby multiple correct answers in a row earn Energy while mistakes cost Energy points. This is another approach to keep the freemium model as attractive as possible, while still enticing users to upgrade to paid features. For full-year 2025, Duolingo raised its guidance to 32% YoY growth. The company improved its adjusted EBITDA margin from 27% in Q2 2024 to 31.2% this quarter. For the full year, this profitability metric, showing how much revenue is left after operating costs - but before taxes, interest, depreciation, and amortization - is now 28.75%. Year-to-date, DUOL stock gained 12.75% in value, currently priced at $367 per share. At this price point, 12 analysts recommend buying, while 9 recommend holding, with zero bears in the sell camp. Against the average 52-week price of $346.44, the average DUOL price target is $496.81 per share, according to WSJ's forecasting data. The bottom price target of $390 is also significantly higher than the present price level, while the ceiling DUOL price target is $600 per share. *** Looking to start your trading day ahead of the curve?
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Duolingo's shift to an AI-first strategy has led to significant financial gains and user growth, despite initial public backlash. The language learning app's embrace of AI has resulted in expanded course offerings, improved features, and better-than-expected financial performance.
Language learning app Duolingo has reported exceptional financial results and user growth, largely attributed to its strategic shift towards an "AI-first" approach. Despite initial backlash from users and social media, the company's embrace of artificial intelligence has led to significant improvements in its offerings and financial performance 1.
Source: Quartz
Duolingo's second-quarter earnings report revealed a 41% year-over-year increase in revenue, reaching $252.3 million 2. The company has raised its annual revenue forecast for 2025 to between $1.01 billion and $1.02 billion, surpassing analysts' expectations 3.
User engagement metrics have also shown remarkable growth:
Duolingo's AI integration has enabled the company to rapidly expand its course offerings and enhance user experience:
Course Expansion: The company introduced 148 new language courses in approximately one year, more than doubling its previous offerings 1.
AI-Enhanced Subscriptions: The company offers two subscription tiers, Super and Max, which include AI-driven features such as:
Content Creation: Duolingo leverages generative AI to create and personalize bite-sized lessons across its language courses 2.
Source: Inc. Magazine
The market has responded positively to Duolingo's AI-driven growth:
Looking ahead, Duolingo plans to further enhance its AI-powered features:
Source: Reuters
While the company faced criticism for its AI-first approach, particularly regarding the replacement of human workers with AI, CEO Luis von Ahn addressed these concerns:
"The reason we came [in] towards the lower end was because I said some stuff about AI, and I didn't give enough context. Because of that, we got some backlash on social media," von Ahn explained 1.
Despite ongoing criticism on platforms like TikTok, Duolingo's financial performance suggests that the AI-first strategy has been successful in driving growth and user engagement.
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