Duolingo $DUOL stock broke through horizontal resistanceA horizontal resistance chart pattern is a type of chart which shows how price movement follows a certain pattern when price reaches a certain level. The pattern forms a resistance... on March 1, 2023, after the company reported impressive EPS and revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... beats.
Duolingo Reports 62% DAU Growth; Record Bookings and Revenue in Fourth Quarter and Full Year 2022
On February 28, 2023, Duolingo announced results for the fourth quarter and full year ended December 31, 2022 in a shareholder letter that is posted at investors.duolingo.com. Duolingo reported Q4 EPS of (35c) versus the consensus estimate of (53c). The company reported Q4 revenue of $103.8M versus the consensus estimate of $99.89M. Paid Subscribers totaled 4.2M at quarter end, an increase of 67% from the prior year quarter. Monthly active users, MAUs, grew 43% to 60.7M from the prior year quarter and Daily active users, DAUs, grew 62% to 16.3M from the prior year quarter.
“Our 2022 results were extraordinary, even relative to the lofty expectations we had for ourselves, with revenue growing by 47%, and cash from operations increasing by over $44 million from last year,” said Luis von Ahn, Co-Founder and CEO of Duolingo. “We enter 2023 in a great position to continue our momentum. The infrastructure we’ve built has driven our innovation and operating efficiency, and is poised to help us deliver higher incremental profits this year and beyond.”
“And we are excited to announce the launch of Duolingo Max, a higher tier subscription that harnesses the power of generative AI. Duolingo Max will give our subscribers an even more engaging way to learn by chatting with Duolingo characters and receiving personalized explanations of their mistakes.”
Duolingo price target raised at Piper Sandler
Arvind Ramnani, an analyst with Piper Sandler, maintained an Overweight rating on the stock and increased the price target for Duolingo to $127 on March 1, 2023, from $95 previously. The analyst informs investors in a research note that the company’s Q4 upside was driven by accelerating user growth and an increase in the percentage of paid users. A further motivating factor for Piper is that 13% of all subscribers are families.
Duolingo price target raised at Raymond James
On March 1, 2023, Raymond James raised Duolingo’s price target to $117 from $109 and maintained an outperform rating on the stock. Duolingo reported strong user metrics and bookings in the fourth quarter, with strong growth in MAUs, DAUs and paid subscribers, an analyst told investors in a note. Raymond James sees the large education and language TAM increasingly shifting to digital and expects 25%+ long-term revenue growth and 30%-35% EBITDA margin.