Duolingo, Inc. (NASDAQ: DUOL) shares plunged 8.46% in the post-market trading session on Thursday, despite reporting better-than-expected fourth-quarter results and providing an optimistic outlook for 2025.
The language learning platform posted Q4 revenue of $209.6 million, surpassing analyst expectations of $205.4 million and marking a 39% year-over-year increase. Net income rose to $13.9 million from $12.1 million in the year-ago quarter. Duolingo's user metrics showed strong growth, with daily active users (DAUs) surging 51% YoY to 40.5 million and monthly active users (MAUs) increasing 32% to 116.7 million.
For 2025, Duolingo provided an upbeat outlook, projecting revenue between $962.5-$978.5 million, above the $964.9 million consensus estimate. However, the company also warned that it expects to grow margins at a more measured pace due to investments in AI and automation, as well as variable costs for its video call feature.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.