Google-Backed Duolingo Just Went Public Here’s What Investors Should Know The Motley Fool

The momentum continued into the first quarter of this year, with revenue surging 97% to $55 million. Anyone who has tried to learn something new knows that staying motivated is hard. To keep users coming back, Duolingo deploys gameplay mechanics like experience points, streaks, and leaderboards. By gamifying the learning process, Duolingo helps users stay engaged — boosting their chances of success. Has a 13% stake in Duolingo — making it the biggest outside investor in the company.

Historical PS ratio values for Duolingo over the last 10 years. The current P/S ratio for Duolingo as of March 16, 2023 is . For more information on how our historical price data is adjusted see the Stock Price Adjustment Guide. IPOs have reached $89 billion in 2021, a 232% jump from the same period last year, according to data from Renaissance Capital.

Facebook — the biggest social media platform and one of the world’s most innovative tech companies — trades at less than 10 times sales. Goldman Sachs, Allen & Company, Evercore ISI and Barclays will lead Duolingo’s IPO offering. Two classes of stocks will be for sale, with class A shares being equivalent to one vote and class B shares equal ling 20 votes, the SEC filing shows. The app maker noted 97% revenue growth to $55.4 million in the first quarter of 2021, compared to the same period last year, where the app made $28.1 million. In 2020, Duolingo saw 129% year-over-year revenue growth, as revenue more than doubled from $70.8 million in 2019 to $161.7 million in 2020.

This is a great way to crowdsource the best educational content for its audience without hiring a salaried educator to design courses. Current and historical p/e ratio for degiro vs stratton markets Duolingo from 2020 to 2022. The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share number.

Users have downloaded the app more than 500 million times, making it the top-grossing education app on Google Play and Apple’s App Store. Duolingo’s shares have soared over 40% from its IPO price of $ a sign of affection for this growing educational tech start-up. Duolingo, Inc. develops a language-learning website and mobile app in the United States and China. The company offers courses in 40 different languages, including Spanish, English, French, Japanese, German, Italian, Chinese, Portuguese, and others. It also provides a digital language proficiency assessment exam.

Price Target and Rating

This is a lower news sentiment than the 0.44 average news sentiment score of Business Services companies. The company’s average rating score is 2.75, and is based on 6 buy ratings, 2 hold ratings, and no sell ratings. Shares of Duolingo Inc. rose more than 8% in the extended session Wednesday after the language-learning app company reported a narrower-than-expected loss and sales that were above Wall Street expectations.

The company brought in $55.4 million in revenue for the quarter ended on March 31 — a 97% jump from last year — while net losses widened more than six-fold to $13.5 million, according to the filing. The technique has proven to be very useful for finding positive surprises. With the Fed signaling oversized rate hikes for longer is the https://day-trading.info/ likely trajectory moving forward, it is understandable why investors are looking for stocks to sell rather than stocks to buy. The company also released its third global language report on Tuesday. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 to -2 .

A high percentage of insider ownership can be a sign of company health. By clicking the button below, your credit card will be charged $28.00 USD and you’ll have access to all Duolingo position data for 90 days. We believe the stocks we’re recommending have the power to deliver life-changing profits – not just in the coming weeks or months, but far beyond. Plus, revenue is increasing and will inevitably catch up to the company’s spending over time. The app functions like a video game where users earn rewards for progress in the game, such as badges and “gems” that can go toward further customizing a character they create.

Duolingo’s business model

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. In 2020, subscriptions accounted for 73% of Duolingo’s revenue. The rest is from ad income (17%) and other services (10%), such as Duolingo English Test fees and sales of virtual goods. In the first quarter of 2021, Duolingo saw 97% growth compared to the same quarter in 2020. Net losses widened more than six-fold to $13.5 million in the three months ending March 31st.

Duolingo solves this problem by using artificial intelligence algorithms to personalize each lesson for every individual learner so users progress at their own pace. It has a popular, engaging platform, a massive, global user base, and enormous room for future growth. On top of that, it stands to benefit from Alphabet’s backing and expertise in scaling technology companies. In its IPO prospectus, the Pittsburgh-based company disclosed annualized revenue growth of 129% last year to $161.7 million.

Founded in 2009, the American company offers 106 courses in 38 languages and now has over 300 million registered users. To start, users can use the app to learn a new language anywhere and anytime. That’s pretty convenient, considering the location-based, deadline-driven structure of traditional education programs. In the old system, students follow a standardized lesson plan irrespective of their abilities, which results in a mixed learning outcome.

Why Duolingo Stock Is a Strong Buy on Robinhood IPO Access

The company is scheduled to release its next quarterly earnings announcement on Thursday, May 11th 2023. If the United States goes to war with another nuclear armed superpower, this could have a devastating impact on your retirement portfolio. Now, even Taiwan’s own foreign minister is saying that China is on the cusp of a full scale invasion. But the good news is, if China invades Taiwan, there is a way to protect yourself.

Clearly, Robinhood is offering more than clunky throwaway IPO stocks. Finally, Figs is the only other stock that Robinhood has offered through IPO Access. That means investors who got IPO shares at $22 have made 113% profit so far.

Duolingo is a three-time CNBC Disruptor 50 company that most recentlyranked No. 42on the 2020 list. Last year the company launched Duolingo ABC, a free English literacy app for children ages 3 to 6. The company originally planned to unveil the app later this year, but due to the coronavirus pandemic decided to release it early to help parents working remotely and homeschooling their children. The app is free from ads and features more than 300 short lessons that teach basic reading and writing skills.

Insiders & Institutions

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In fact, Duolingo co-founder Luis von Ahn has sold two inventions to Alphabet. One of these inventions, reCAPTCHA, is used everywhere online today to guard websites from fraud and abuse. After snapping up reCAPTCHA in 2009, Alphabet went on to back von Ahn’s next venture, Duolingo, which has become an even greater success.

• The monthly returns are then compounded to arrive at the annual return.
• It has a popular, engaging platform, a massive, global user base, and enormous room for future growth.
• The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
• The company also released its third global language report on Tuesday.
• But we know it plans to sell $100 million worth of shares whenever the IPO date arrives.

SEATTLE—-Karat, the world’s largest interviewing company, today announced that five leading corporations have joined the Brilliant Black Minds movement to help double the number of Bl… DUOL stock climbed about 7% in extended trading Tuesday, after rising 2% in the regular session to close at $90.79, after the company’s results and outlook beat Wall Street expectations…. Duolingo is introducing a new subscription tier with features powered by OpenAI’s new GPT-4 technology, the company announced on Tuesday. The new tier, Duolingo Max, unlocks two new AI-powered feature… The company has implemented GPT-4 features in a limited amount of language courses. One share of DUOL stock can currently be purchased for approximately $126.29.

Since 1988 it has more than doubled the S&P 500 with an average gain of +24.52% per year. These returns cover a period from January 1, 1988 through February 6, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.

Duolingo, Inc. witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn’t suggest further strength down … Duolingo issued an update on its first quarter 2023 earnings guidance on Tuesday, February, 28th. The company provided earnings per share guidance of for the period. The company issued revenue guidance of $111.00 million-$114.00 million, compared to the consensus revenue estimate of $106.13 million. The company uses community volunteers to innovate and develop new language courses – for free – via its platform, Duolingo Incubator.

In the past three months, Duolingo insiders have sold 249.22% more of their company’s stock than they have bought. Specifically, they have bought $7,775,134.00 in company stock and sold $27,152,122.00 in company stock. Duolingo has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock. According to analysts’ consensus price target of $116.33, Duolingo has a forecasted downside of 7.9% from its current price of $126.29. Intraday Data provided by FACTSET and subject to terms of use.