Tell me about Duolinguo

Duolingo is a language-learning app that has transformed from a free tool into a profitable player in the edtech space since its 2021 IPO. Here's a detailed analysis of the company:

1. **Business Model and Growth**: Duolingo is the world's largest language-learning platform, with over 90 million monthly users and support for more than 40 languages. Its mobile app combines gamification with AI-driven lessons, making learning engaging and accessible. The company has expanded into subjects like math and music, and its Duolingo English Test is accepted by universities worldwide. Duolingo's revenue grew by 41.46% to $252.27 million, and its net income increased by 83.9% to $44.78 million.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|DUOL|DUOL.O|Duolingo|2024 Q3|732.205201282508|39.9421612509446|716.6666666666667|185|
|DUOL|DUOL.O|Duolingo|2024 Q4|14.772633490137824|38.78862138623042||185|
|DUOL|DUOL.O|Duolingo|2025 Q1|30.342038878171834|37.713439926471025|26.315789473684216|185|
|DUOL|DUOL.O|Duolingo|2025 Q2|83.89799186891709|41.46203323108671|78.43137254901961|185|

2. **Financial Performance**: Duolingo's financials are impressive, with a net profit of $30 million in 2024, a stark contrast to many growth-stage peers. In Q2 2025, the company reported earnings per share (EPS) of $0.91, surpassing the Zacks Consensus Estimate of $0.55. This indicates a strong profitability and robust financial health.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|DUOL|DUOL.O|Duolingo|2024 Q3|39.9421612509446|1.92594E8|185|
|DUOL|DUOL.O|Duolingo|2024 Q4|38.78862138623042|2.0955E8|185|
|DUOL|DUOL.O|Duolingo|2025 Q1|37.713439926471025|2.30743E8|185|
|DUOL|DUOL.O|Duolingo|2025 Q2|41.46203323108671|2.52265E8|185|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|DUOL|DUOL.O|Duolingo|2024 Q3|732.205201282508|2.336E7|185|
|DUOL|DUOL.O|Duolingo|2024 Q4|14.772633490137824|1.3907E7|185|
|DUOL|DUOL.O|Duolingo|2025 Q1|30.342038878171834|3.5135E7|185|
|DUOL|DUOL.O|Duolingo|2025 Q2|83.89799186891709|4.4781E7|185|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|DUOL|DUOL.O|Duolingo|2024 Q3|716.6666666666667|0.49|185|
|DUOL|DUOL.O|Duolingo|2025 Q1|26.315789473684216|0.72|185|
|DUOL|DUOL.O|Duolingo|2025 Q2|78.43137254901961|0.91|185|

3. **Market Position and Analysts' Outlook**: Duolingo has a market cap nearing $11 billion and its stock has quadrupled in value, making it a rare profitable player in the edtech space. Analysts have a bullish outlook, with an average price target of $509, indicating a 22% upside potential. DA Davidson reiterated a Buy rating with a $500 price target, reflecting confidence in Duolingo's future revenue and EBITDA multiples.
4. **Challenges and Future Prospects**: While Duolingo faces challenges from potential displacement by neural networks and real-time machine translators, the company can adapt by integrating AI translation tools into its ecosystem. Duolingo's expansion into new subjects like math and music broadens its total addressable market (TAM), and its gamified approach and AI enhancements keep users engaged organically.
5. **Insider Activity**: Duolingo's Chief Technology Officer and Co-Founder Severin Hacker sold 9,193 shares, but the company maintains strong financial health with impressive gross margins of 72% and more cash than debt on its balance sheet. This sale was part of a trading plan adopted in 2024, indicating the insider's confidence in the company's financial stability.

In conclusion, Duolingo is a profitable and growing player in the edtech space with a strong market position and a positive analyst outlook. Its innovative approach to language learning and expansion into new subjects position it well for future growth.