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.