Key Stats for DUOL Stock
- Price Change in 2025: 49%
- Current Share Price: $486
- 52-Week High: $487
- Analysts’ Price Target: $386
What Happened?
Valued at a market cap of $22.1 billion, Duolingo (DUOL) stock has surged close to 50% year-to-date, which has significantly outpaced the broader market.
DUOL stock jumped over 20% in a single trading session on Friday, after the company reported first-quarter results that significantly surpassed Wall Street’s expectations.
The language-learning software maker reported earnings of $1.26 per share and revenue of $230.7 million, easily beating analyst estimates of $1.20 in EPS and sales of $223.11 million. Year-over-year, this represents a 12.5% increase in earnings and an impressive 38% growth in sales.
The company also exceeded expectations for user metrics, reporting 10.3 million paying subscribers (up 800,000 from Q4 2024), 46.6 million daily active users (up 49% year-over-year), and 130.2 million monthly active users (up 33% year-over-year).
Looking ahead, Duolingo provided strong guidance, forecasting revenue of $240 million for the current quarter (above the $233.8 million consensus) and full-year revenue of $987-996 million (midpoint $991.5 million, exceeding analyst estimates of $976.4 million).
See Duolingo’s full Q1 earnings transcript & key results (It’s free) >>>
What the Market Is Telling Us
The market’s strong reaction shows investors are confident in Duolingo’s growth plan and how well it’s being executed. Particularly impressive is the company’s ability to leverage generative AI technology to rapidly expand its offerings, as evidenced by the recent launch of 148 new language courses, more than doubling its previous offerings.
CEO Luis von Ahn highlighted this achievement, noting, “Developing our first 100 courses took about 12 years, and now, in about a year, we’re able to create and launch nearly 150 new courses.”
Duolingo is also expanding beyond languages. In the coming weeks, it plans to add chess instruction to complement its existing math and music courses. This diversification strategy aligns with the company’s mission of making education engaging and accessible.
With subscription revenue growing 45% and Duolingo only capturing a fraction of its estimated $220 billion total addressable market, investors see significant room for continued expansion.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
