Duolingo (NASDAQ:DUOL) Releases Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Duolingo reported $0.89 EPS for the quarter, beating estimates by $0.10 and delivering $291.97 million in revenue, with a strong net margin (~39.9%) and ROE of 14.9%.
• Despite the beat, shares traded down to $110.23 midday; the company has a market cap of $5.18 billion, a PE of 12.94, and a one‑year range of $87.89–$544.93.
• Analysts hold a consensus "Hold" rating with an average target of $196.78 (notably Goldman cut its target to $105), and insiders sold about 14,939 shares (~$1.68M) in the past three months while institutions own ~91.6%.

Duolingo (NASDAQ:DUOL - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.10, FiscalAI reports. The company had revenue of $291.97 million for the quarter, compared to analyst estimates of $288.60 million. Duolingo had a return on equity of 14.88% and a net margin of 39.91%.

Duolingo Price Performance

NASDAQ:DUOL traded down $1.02 during mid-day trading on Monday, reaching $110.23. 3,989,107 shares of the stock were exchanged, compared to its average volume of 2,457,170. The business has a fifty day moving average price of $100.45 and a 200 day moving average price of $157.37. The firm has a market capitalization of $5.18 billion, a PE ratio of 12.94, a PEG ratio of 0.78 and a beta of 0.90. Duolingo has a 1-year low of $87.89 and a 1-year high of $544.93. The company has a current ratio of 2.61, a quick ratio of 2.61 and a debt-to-equity ratio of 0.07.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Argus reissued a "hold" rating on shares of Duolingo in a report on Wednesday, March 18th. Zacks Research raised Duolingo from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 28th. BMO Capital Markets raised Duolingo to a "buy" rating in a report on Monday, January 12th. The Goldman Sachs Group lowered their target price on Duolingo from $250.00 to $105.00 and set a "neutral" rating on the stock in a report on Monday, March 2nd. Finally, Weiss Ratings lowered Duolingo from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, April 22nd. Three equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $196.78.

Insider Transactions at Duolingo

In related news, insider Natalie Glance sold 3,545 shares of Duolingo stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $113.51, for a total value of $402,392.95. Following the transaction, the insider owned 115,380 shares of the company's stock, valued at approximately $13,096,783.80. This trade represents a 2.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Robert Meese sold 1,000 shares of Duolingo stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $110.06, for a total value of $110,060.00. Following the completion of the transaction, the insider directly owned 122,636 shares in the company, valued at $13,497,318.16. This represents a 0.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 14,939 shares of company stock worth $1,676,291 in the last three months. Insiders own 16.62% of the company's stock.

Hedge Funds Weigh In On Duolingo

A number of institutional investors have recently bought and sold shares of the stock. Alpine Woods Capital Investors LLC purchased a new position in Duolingo in the 4th quarter worth about $333,000. Vident Advisory LLC increased its stake in Duolingo by 5.8% in the 4th quarter. Vident Advisory LLC now owns 2,647 shares of the company's stock worth $465,000 after purchasing an additional 145 shares in the last quarter. Cim LLC increased its stake in Duolingo by 6.0% in the 4th quarter. Cim LLC now owns 4,390 shares of the company's stock worth $770,000 after purchasing an additional 248 shares in the last quarter. Empowered Funds LLC purchased a new position in Duolingo in the 4th quarter worth about $331,000. Finally, Wellington Management Group LLP increased its stake in Duolingo by 1.7% in the 4th quarter. Wellington Management Group LLP now owns 25,404 shares of the company's stock worth $4,458,000 after purchasing an additional 431 shares in the last quarter. Hedge funds and other institutional investors own 91.59% of the company's stock.

Duolingo Company Profile

Duolingo, Inc NASDAQ: DUOL is a technology-driven education company that operates a widely used language-learning platform. Founded in 2011 by Luis von Ahn and Severin Hacker, Duolingo offers a freemium service featuring bite-sized lessons, gamified exercises and adaptive learning algorithms. The company's core product is its mobile and web application, which supports instruction in more than 40 languages, ranging from widely spoken tongues such as English and Spanish to lesser-taught options including Irish and Swahili.

In addition to its flagship language courses, Duolingo has expanded its product suite to include the Duolingo English Test, an on-demand, computer-based English proficiency exam designed for academic and professional admissions.

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