Language-learning app Duolingo (NASDAQ:DUOL) will be announcing earnings results tomorrow afternoon. Here's what to look for.
Last quarter Duolingo reported revenues of $137.6 million, up 43.3% year on year, beating analyst revenue expectations by 4.2%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.Is Duolingo buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Duolingo's revenue to grow 42.9% year on year to $148.4 million, in line with the 42.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.65 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.5%.
Looking at Duolingo's peers in the education services segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Lincoln Educational delivered top-line growth of 11.7% year on year, beating analyst estimates by 6.6% and Perdoceo Education reported revenue decline of 16% year on year, exceeding estimates by 1.2%. Lincoln Educational traded up 2.7% on the results, and Perdoceo Education was down 1.4%.
Read our full analysis of Lincoln Educational's results here and Perdoceo Education's results here.
Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the education services stocks have fared somewhat better, they have not been spared, with share price declining 4.7% over the last month. Duolingo is down 4.6% during the same time, and is heading into the earnings with analyst price target of $213.6, compared to share price of $183.82.
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