According to the news on May 10th from Duozhi.com, recently, Duolingo released its financial report for the first quarter of 2023, which is also the first report since integrating GPT-4. Subsequently, an analyst conference call was held to discuss the financial report.
The financial report shows that Duolingo’s revenue in Q1 2023 was $120 million, a year-on-year increase of 42%. The net loss for Q1 2023 was $2.6 million, and the adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) was $15.1 million.
In the first quarter of 2023, Duolingo’s daily active users (DAU) increased by 62% year-on-year, reaching 20.3 million, and monthly active users (MAU) increased by 47% year-on-year, reaching 72.6 million.
The DAU/MAU ratio for the first quarter reached 28%, and the total number of Duolingo Plus paying users was 4.8 million, a year-on-year increase of 63%.
Luis von Ahn, co-founder and CEO of Duolingo, said, “2023 continues the trajectory of 2022 with strong user growth, revenue growth, increasing profitability, and operating cash flow. We continue to operate according to established patterns, which is why our profitability exceeds our expectations.”
Luis von Ahn also stated, “We are excited about our new artificial intelligence product, Duolingo Max, and we are improving its functionality to enhance teaching, increase engagement, and drive monetization.”
Duolingo mentioned that its strong performance is primarily due to continuous improvements in three aspects of the Duolingo language learning application: teaching effectiveness, user engagement, and profitability. Additionally, marketing has become more effective through social media operations, key opinion leaders (KOL), and word-of-mouth promotion.
The financial report indicates that Duolingo will raise its revenue expectations for 2023, targeting a year-on-year growth of 30%, and narrow the adjusted EBITDA profit margin to a range of 11-12%.
Although the number of bookings and revenue for Duolingo Max has not yet been included in Duolingo’s financial report, investors have high expectations for it. On May 11, 2022, the closing price was $65.8 per share. Today, after a year, on May 10, 2023, Duolingo closed at $134.3 per share, with a growth rate of over 100%.