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Duolingo Inc (DUOL)



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Upturn Advisory Summary
03/27/2025: DUOL (2-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -15.38% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 14.81B USD | Price to earnings Ratio 175.07 | 1Y Target Price 385.14 |
Price to earnings Ratio 175.07 | 1Y Target Price 385.14 | ||
Volume (30-day avg) 1098069 | Beta 0.92 | 52 Weeks Range 145.05 - 441.76 | Updated Date 04/2/2025 |
52 Weeks Range 145.05 - 441.76 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.87 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.84% | Operating Margin (TTM) 6.8% |
Management Effectiveness
Return on Assets (TTM) 3.54% | Return on Equity (TTM) 11.97% |
Valuation
Trailing PE 175.07 | Forward PE 125 | Enterprise Value 13988599518 | Price to Sales(TTM) 19.8 |
Enterprise Value 13988599518 | Price to Sales(TTM) 19.8 | ||
Enterprise Value to Revenue 18.7 | Enterprise Value to EBITDA 190.45 | Shares Outstanding 39044200 | Shares Floating 36368426 |
Shares Outstanding 39044200 | Shares Floating 36368426 | ||
Percent Insiders 0.89 | Percent Institutions 94.32 |
Analyst Ratings
Rating 3.9 | Target Price 347.91 | Buy 8 | Strong Buy 5 |
Buy 8 | Strong Buy 5 | ||
Hold 7 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Duolingo Inc
Company Overview
History and Background
Duolingo Inc. was founded in 2011 by Luis von Ahn and Severin Hacker and launched to the public in 2012. Initially focusing on crowdsourced translation alongside language learning, Duolingo shifted its focus primarily to providing free, gamified language education, rapidly gaining popularity. It became a publicly traded company in 2021 via an IPO.
Core Business Areas
- Language Learning: Duolingo's core business is providing free language education through its app and website, offering courses in numerous languages.
- Duolingo English Test: The Duolingo English Test (DET) is a standardized English proficiency test used by universities and institutions for admissions. It serves as a revenue source and complements the language learning platform.
- Subscription Services: Duolingo offers paid subscription services, such as Duolingo Plus (now Super Duolingo), which provide an ad-free experience and other premium features.
Leadership and Structure
Luis von Ahn is the Co-founder and CEO. The company has a standard corporate structure with departments for engineering, product, marketing, finance, and operations. Leaded by various vice presidents and directors.
Top Products and Market Share
Key Offerings
- Duolingo Language Learning App: This free language learning app is Duolingo's flagship product. It teaches languages through gamified lessons. The number of monthly active users (MAUs) was 85.7 million at the end of Q1 2024. Competitors include Babbel, Rosetta Stone, Memrise, and Busuu.
- Super Duolingo: A premium subscription service offering an ad-free experience and enhanced features like personalized learning. Competitors include Babbel and Rosetta Stone's subscription offerings. Subscription bookings were $159.8 million in Q1 2024.
- Duolingo English Test: The DET is an online English proficiency test. Competitors include TOEFL and IELTS. Revenue figures are bundled within overall company revenue and not directly broken out.
Market Dynamics
Industry Overview
The language learning market is experiencing growth driven by globalization, increased internet access, and mobile learning. There's a growing demand for accessible and affordable language education.
Positioning
Duolingo is positioned as a leading provider of free and accessible language education, with a strong emphasis on gamification and user experience. Its competitive advantages include its large user base, brand recognition, and freemium model.
Total Addressable Market (TAM)
The global language learning market is expected to reach billions of USD. Duolingo is well-positioned to capture a significant share of this TAM through its freemium model and expanding language offerings.
Upturn SWOT Analysis
Strengths
- Large user base
- Strong brand recognition
- Gamified learning experience
- Freemium business model
- Data-driven approach to learning
Weaknesses
- Reliance on freemium model for revenue
- Perceived lack of depth compared to traditional courses
- Monetization challenges
- Course completion rates
Opportunities
- Expansion into new languages and subject areas
- Partnerships with educational institutions
- Further development of AI-powered learning tools
- Growth in the English proficiency testing market
Threats
- Competition from established language learning providers
- Changes in app store policies
- Economic downturn impacting consumer spending
- Evolving language learning technologies
Competitors and Market Share
Key Competitors
- BABEL
- RMST
- MTCH
- WORK
Competitive Landscape
Duolingo's advantage lies in its freemium model and large user base, whereas Babel offer premium learning. Rosetta Stone has a deeper course catalog. MTCH has learning products but not language only so it is not a direct competitor.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Duolingo has experienced strong growth in user base and revenue in recent years, driven by increased adoption of mobile learning and its freemium model.
Future Projections: Analysts predict continued revenue growth for Duolingo, driven by expansion into new languages, increased subscription adoption, and growth in the DET market.
Recent Initiatives: Recent initiatives include expanding language offerings, enhancing AI-powered learning tools, and focusing on monetization through subscription services.
Summary
Duolingo is a strong player in the language learning market, with a large user base and growing revenue. Its freemium model is working well, but the company needs to focus on improving monetization and profitability. It should be aware of the threats related to its reliance on its freemium model as the market continues to evolve.
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Sources and Disclaimers
Data Sources:
- Duolingo Investor Relations
- Analyst Reports
- Company Filings
Disclaimers:
This analysis is based on available data and is for informational purposes only. It should not be considered financial advice. Market share data is estimated and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Duolingo Inc
Exchange NASDAQ | Headquaters Pittsburgh, PA, United States | ||
IPO Launch date 2021-07-28 | Co-Founder, Chairman of the Board, President & CEO Dr. Luis Alfonso von Ahn Arellano Ph.D. | ||
Sector Technology | Industry Software - Application | Full time employees 830 | Website https://www.duolingo.com |
Full time employees 830 | Website https://www.duolingo.com |
Duolingo, Inc. operates as a mobile learning platform in the United States, the United Kingdom, and internationally. The company offers courses in 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese, and Chinese through its Duolingo app. It also provides a digital English language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.
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