Duolingo stock climbs as online learning surges and AI improves outlook

0
34
Duolingo stock climbs as online learning surges and AI improves outlook
Duolingo stock climbs as online learning surges and AI improves outlook

Duolingo shares increased by more than 16% after the company forecasted higher-than-expected revenue in 2024 as a result of a shift to online learning and AI integration on its platform.

Duolingo’s (DUOL.O) shares rose more than 16% on Thursday after the firm anticipated higher-than-expected revenue in 2024 as a result of a move to online learning and AI integration on its platform.

If gains are sustained, the company’s market value will increase by $1.68 billion.

According to LSEG statistics, Duolingo expects sales in 2024 to be between $717.5 million and $729.5 million, far exceeding analysts’ average estimate of $699.3 million.

According to Seaport Global, the language learning business is quickly migrating online, with Duolingo emerging as a clear leader with its “freemium” approach.

Analysts also noted that it has successfully integrated generative artificial intelligence (GenAI) into its solutions.

Duolingo Max, a new membership tier with GenAI features, was introduced in March of last year.

“We saw a lot of demand at higher prices for our Max offering,” CFO Matt Skaruppa said during a post-earnings call.

Duolingo is free to use, but it also offers a paid subscription and in-app purchases.

The company recorded record overall bookings of $191 million for the three months ended December 31, a 51% increase. Paid subscribers increased by over 60% to a record 6.6 million in the fourth quarter.

Shares were trading above $227, representing a more than 9% discount to 13 analysts’ median price objective of $251.50.

In the fourth quarter, the company’s daily active users increased by 65%, while monthly active users increased by 46% year over year.

“Most of the major KPIs are really good, which explains the positive share price reaction… It has had a significant increase in revenue, users, and subscribers,” stated Dan Coatsworth, an investment analyst at AJ Bell.

Also readAs a technology leader, I cultivated the knack of understanding one step above the others so that I can handle them, says Dr. Chandran Raghuraman, CTO at Bahwan Cybertek

Do FollowCIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter 

About us:

CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics.