Duolingo (DUOL) Q1 Earnings Report Preview: What To Look For

Adam Hejl /
2024/05/07 3:00 am EDT

Language-learning app Duolingo (NASDAQ:DUOL) will be reporting results tomorrow after market hours. Here's what you need to know.

Duolingo beat analysts' revenue expectations by 1.8% last quarter, reporting revenues of $151 million, up 45.4% year on year. It was a very strong quarter for the company, with impressive growth in its users and exceptional revenue growth. It reported 6.6 million users, up 57.1% year on year.

Is Duolingo a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Duolingo's revenue to grow 43.2% year on year to $165.7 million, in line with the 42.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.

Duolingo Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Duolingo has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3% on average.

Looking at Duolingo's peers in the consumer subscription segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 14.5%, meeting analysts' expectations, and Chegg reported a revenue decline of 7.1%, in line with consensus estimates. Coursera traded down 14.1% following the results while Chegg was also down 28.1%.

Read our full analysis of Coursera's results here and Chegg's results here.

Investors in the consumer subscription segment have had steady hands going into earnings, with share prices flat over the last month. Duolingo is up 13% during the same time and is heading into earnings with an average analyst price target of $251.6 (compared to the current share price of $247.61).

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