"Duolingo's revenue rose 27% year on year to $292 million, with earnings per share at 89 cents, surpassing expectations of 76 cents. Daily active users grew 21% to 56.5 million, and paid subscribers also increased by 21% to 12.5 million."
"CEO Luis von Ahn stated that Duolingo would intentionally slow down monetization to focus on user engagement and long-term growth, with bookings growth expected to decelerate to 6% in the second quarter."
"The company aims to reach 100 million daily active users by 2028, investing in product improvements that enhance engagement, even if they reduce short-term revenue."
"Significant changes include longer free trials and free access to features like Explain My Answer, which utilizes GPT-4, aimed at encouraging daily user return."
Duolingo exceeded Q1 estimates with a 27% revenue increase to $292 million and a 21% rise in daily active users to 56.5 million. CEO Luis von Ahn announced a strategic shift to prioritize user engagement and long-term growth, resulting in a planned slowdown of monetization efforts. Bookings growth is expected to decelerate to 6% in Q2, with full-year guidance indicating lower growth rates than previously anticipated. The stock fell 14% following this announcement, reflecting market concerns about AI's impact on language learning. Duolingo aims for 100 million daily active users by 2028 through product improvements and expanded access to features.
Read at TNW | Finance
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