Duolingo, Inc. Of reported better-than-expected fourth-quarter financial results and issued strong guidance on Wednesday.
The company posted quarterly revenue of $150.99 million, beating estimates of $148.09 million. According to data from Benzinga Pro, earnings came in at 26 cents per share, beating expectations of 15 cents per share.
Duolingo ended the quarter with $191 million in total bookings, up 51% year over year. Paid subscribers increased 57% year over year to 6.6 million.
“2023 was an exceptional year that exceeded our own expectations. It all concluded with a very strong fourth quarter that saw us achieve record bookings, revenue and profitability,” said Luis von Ahn, co-founder and CEO of Duolingo. “We accelerated DAU growth in every quarter of 2023, and achieved record user engagement and record subscriber numbers in the fourth quarter.”
According to Benzinga Pro, Duolingo expects first-quarter revenue of $164 million to $167 million versus estimates of $159,238 million. Full-year revenues are expected to be between $717.5 million and $729.5 million versus estimates of $699.096 million.
Duolingo shares rose 0.5% to close at $195.51 on Wednesday.
These analysts made changes to their price targets on Duolingo after the company reported quarterly results.
- Piper Sandler raised its price target on Duolingo from $217 to $282. Piper Sandler analyst Arvind Ramnani maintained an Overweight rating.
- UBS raised the price target on Duolingo from $230 to $275. UBS analyst Chris Kuntarich maintained a Buy rating.
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