On May 8th Eastern Time, Duolingo announced its first quarter results as of March 31st, 2024.
The financial report shows that during the reporting period, the total revenue of Duolingo was 168 million US dollars, an increase of 44.87% compared to 116 million US dollars in the same period last year; The net profit was 26.956 million US dollars, while the net loss for the same period last year was 2.582 million US dollars, turning the loss into profit year-on-year.
In terms of expenses, during the reporting period, the R&D expenses, sales and marketing expenses, as well as general and administrative expenses of Duolingo were $50.878 million, $19.931 million, and $35.114 million, respectively.
The gross profit margin in the first quarter increased by about 30 basis points year-on-year, reaching 73.0%. This is mainly due to the increased contribution of subscriber income as a percentage of total revenue to subscription gross profit margin.
In the first quarter, the cash flow generated from operating activities in Duolingo was $83.514 million, and the free cash flow was $79.621 million, an increase of 182.1% and 176.54% year-on-year, respectively. It is reported that this quarter has become the highest quarter of free cash flow in many neighboring countries. Duolingo stated that this was mainly due to the generation of net income in the current period, as well as the difference in the timing of the amount received from payment service providers compared to the same period last year, resulting in an increase in operating cash.
According to the first quarter report, Duolingo, as a global mobile learning platform, had 31.4 million daily active users during the reporting period, an increase of 54% compared to the same period last year, and 97.6 million monthly active users, an increase of 35% compared to the same period last year.
The total booking volume of Duolingo in the first quarter was 198 million US dollars, a year-on-year increase of 41% driven by the growth of subscription revenue. In terms of revenue composition, subscription revenue is 132 million US dollars, accounting for 79% of total revenue.
In addition, in its financial report, Duolingo also made predictions for the second quarter and full year of 2024, with an expected revenue of $175 million to $178 million in the second quarter, a year-on-year increase of over 38%; It is expected that the total revenue for the whole year of 2024 will be between 727 million US dollars and 736 million US dollars, a year-on-year increase of over 37%.
It is worth noting that Duolingo has recently launched Duolingo Max, which is the highest subscription layer with generative AI capabilities in Duolingo. Duolingo stated that it expects to continue optimizing the subscription layer throughout the year and plans to further improve its family plan, encouraging families to work together towards common goals, which is still in its early stages.