Duolingo, Inc. (NASDAQ: DUOL) stock plunged 5.8% in after-hours trading on Thursday, despite reporting better-than-expected fourth-quarter results and providing an optimistic outlook for 2025.
The language learning platform reported Q4 revenue of $209.6 million, surpassing analyst expectations of $205 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. Paid subscribers grew 43% YoY to 9.5 million.
For 2025, Duolingo provided upbeat guidance, projecting revenue between $962.5-$978.5 million, above the $964.9 million consensus estimate. The company cited the strong performance of its highest subscription tier, Duolingo Max, as a key driver of growth.