Duolingo stock bolted Thursday after easily beating forecasts for its Q3 results late Wednesday. The mobile learning platform also launched new music and updated math courses on its app Thursday.
Pittsburgh-based Duolingo reported earnings of 6 cents per share compared to a loss of 46 cents per share last year. Total revenue spiked 43% to $137.6 million. Analysts polled by FactSet expected a loss of 7 cents per share on $132.1 million in sales.
Total bookings increased 49% to $153.6 million, driven by a 54% jump in subscription bookings to $121.3 million. Analysts had expected total bookings of $138 million with $108.1 million subscription bookings.
Duolingo's paid subscribers totaled 5.8 million at the end of the quarter, up 60% from 2022. Engagement on the platform was up too. Monthly active users rose 47% year-over-year to 83.1 million. Daily active users leapt 63% to 24.2 million.
Duolingo Uses AI To Revolutionize Learning, Captivate Users, Fuel Explosive Growth
For the fourth quarter, Duolingo guided revenue between $145 million to $148 million, representing sales growth of up to 42.6%. The company sees total bookings ranging from $167 million to $170 million. FactSet analysts expect $146.8 million in sales on $165 million in bookings.
Duolingo guided full-year revenue between $598 million and $601 million, compared to Wall Street forecasts of $525.5 million.
Duolingo also launched a new music course, an updated math course and more than 40 new language lessons on its iOS app Thursday, adding to its lesson plan of over 100 courses with more than 40 different languages.
"My hope is that our gamified approach to teaching helps people improve their confidence in these traditionally challenging subjects," CEO Luis von Ahn said in the release.
Duolingo noted private music lessons can cost up to $400 per session.
Duolingo Stock
DUOL stock leapt nearly 21.4% Thursday, breaking to its highest level in more than a year. Shares had snuffed a September breakout by falling more than 7% to 8% below the double-bottom base buy point.
Duolingo stock has bolted 185% so far in 2023.
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