DUOLINGO Reports Strong Financial Results for FY2023 Q3
December 13, 2023
☀️Earnings Overview
On September 30th 2023, DUOLINGO ($NASDAQ:DUOL) released its financial results for the fiscal year 2023 third-quarter. Total revenue rose 43.3% to USD 137.6 million compared to the same period last year, while net income increased by an impressive 115.2% to USD 2.8 million.
Share Price
On Wednesday, DUOLINGO reported strong financial results for FY2023 Q3, with its stock opening at $166.2 and closing at $167.3, up by 1.7% from its previous closing price of $164.5. This increase in stock price is a sign of the success of DUOLINGO’s business model and the continued trust of investors who believe in the company’s long-term success. Furthermore, the company has seen a steady flow of new users, continuing to build upon the strong user base that it already had. This increased demand has enabled the company to make further investments in its infrastructure and technology, allowing it to offer more effective language learning services.
DUOLINGO is continuing to capitalize on its successes as it remains committed to providing high-quality language learning services. As the world continues to become increasingly interconnected, the need for language learning platforms will only continue to grow, and DUOLINGO is well-positioned to benefit from this trend. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Duolingo. DUOLINGO_Reports_Strong_Financial_Results_for_FY2023_Q3″>More…
| Total Revenues | Net Income | Net Margin |
| 483.95 | -9.98 | -2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Duolingo. DUOLINGO_Reports_Strong_Financial_Results_for_FY2023_Q3″>More…
| Operations | Investing | Financing |
| 116.03 | -14.38 | 0.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Duolingo. DUOLINGO_Reports_Strong_Financial_Results_for_FY2023_Q3″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 870.71 | 255.9 | 14.65 |
Key Ratios Snapshot
Some of the financial key ratios for Duolingo are shown below. DUOLINGO_Reports_Strong_Financial_Results_for_FY2023_Q3″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 73.5% | – | -7.5% |
| FCF Margin | ROE | ROA |
| 21.8% | -3.7% | -2.6% |
Analysis
At GoodWhale, we conducted an analysis of DUOLINGO‘s financials. According to our Star Chart, DUOLINGO is strong in asset and growth, and weak in dividend and profitability. The company’s high health score of 10/10 indicates that it is capable of safely riding out any crisis without the risk of bankruptcy, considering its cashflows and debt. We classify DUOLINGO as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. As such, DUOLINGO may be attractive to investors who are looking for the potential for high growth but are willing to accept a higher degree of risk. These investors may include venture capitalists, private equity firms, or even individuals looking for a higher rate of return. In addition, those who are interested in supporting the company’s mission may also be interested in investing in DUOLINGO. More…
Peers
The language-learning market is a growing and competitive industry. Duolingo Inc, LAIX Inc, Newborn Town Inc, and Hello Pal International Inc are all companies that provide language-learning services. While each company has its own unique approach to language learning, they all share the common goal of helping people learn new languages. Duolingo Inc is one of the leading language-learning platforms and has a large user base. LAIX Inc is a mobile-first language-learning company that offers a variety of courses. Hello Pal International Inc is a social language-learning platform that helps people connect with others who are learning the same language. Newborn Town Inc is a language-learning company that focuses on providing immersive and realistic experiences.
– LAIX Inc ($OTCPK:LAIXY)
Newborn Town Inc is a publicly traded company with a market capitalization of 1.48 billion as of 2022. The company has a negative return on equity of 34.07%. Newborn Town Inc is engaged in the business of providing software and services for digital marketing and advertising.
– Newborn Town Inc ($SEHK:09911)
With a market cap of 11.01M as of 2022, Pal International Inc has a ROE of -21.32%. The company is engaged in the business of providing online and mobile social networking services. It offers a platform for people to connect with friends and family, share photos and videos, and engage in other activities.
Summary
DUOLINGO‘s financial performance in the third quarter of 2023 showed strong growth as the company reported total revenue of USD 137.6 million, a 43.3% increase on the same period the previous year. Net income also rose by 115.2%, indicating a healthy profit margin. This is an encouraging sign for potential investors, and further highlights DUOLINGO’s potential as a sound investment opportunity. With the company’s innovative technology and expanding global user base, it is an attractive option for investors looking to diversify their portfolio.
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