Why did DUOL's Q3 earnings exceed forecasts?

Duolingo's Q3 earnings exceeded forecasts due to several key factors:

1. Revenue Growth: Duolingo reported a 39.9% year-on-year revenue growth, reaching $192.6 million, which surpassed analysts' expectations by 1.8%. This outperformance can be attributed to increased bookings and a rise in average revenue per user.
2. User Engagement and New Features: The company's AI-powered features, such as the Video Call function, have been particularly popular with English learners, driving a 50% rise in subscription bookings. The introduction of premium features like Duolingo Max and the gamified experience offered by Duolingo Adventures have also contributed to user engagement and retention.
3. Market Expansion and Monetization: Duolingo's expansion into new languages and subjects like math and music has contributed to its growth. The company's focus on monetization of its existing user base and increasing the lifetime value of each user has also been effective.

In summary, Duolingo's strong revenue growth and exceeding forecasts can be attributed to its successful monetization strategies, user engagement tactics, and market expansion efforts.