0.20%
11.69%
23.94%
121.27%
100.61%
264.54%
161.84%
AI Spotlight on DUOL
Company Description
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.The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.
Market Data
| Last Price | 363.99 |
| Change Percentage | 0.20% |
| Open | 368.44 |
| Previous Close | 363.28 |
| Market Cap ( Millions) | 16010 |
| Volume | 511943 |
| Year High | 378.48 |
| Year Low | 145.05 |
| M A 50 | 338.71 |
| M A 200 | 252.08 |
Financial Ratios
| FCF Yield | 1.43% |
| Dividend Yield | 0.00% |
| ROE | 11.74% |
| Debt / Equity | 6.64% |
| Net Debt / EBIDTA | -1328.41% |
| Price To Book | 21.1 |
| Price Earnings Ratio | 199.95 |
| Price To FCF | 70.06 |
| Price To sales | 23.22 |
| EV / EBITDA | 252.64 |
News
- Jan -30 - Duolingo, Inc. (DUOL) Surpasses Market Returns: Some Facts Worth Knowing
- Jan -30 - Duolingo to Announce Fourth Quarter and Full Year 2024 Results on Thursday, February 27, 2025
- Jan -28 - Duolingo: An Unexpected Benefactor From the TikTok Ban
- Jan -23 - Duolingo, Inc. (DUOL) Stock Sinks As Market Gains: Here's Why
- Jan -20 - Why Is Everyone Talking About Duolingo Stock?
- Jan -17 - Duolingo's AI-Powered China Surge Impresses Bullish Analyst
- Jan -16 - Duolingo shares climb 7% as users swarm to app to learn Mandarin
- Jan -16 - Duolingo Launches AI-Powered Video Call for Android
- Jan -13 - Duolingo, Inc. (DUOL) Stock Sinks As Market Gains: Here's Why
- Jan -06 - Duolingo, Inc. (DUOL) Stock Falls Amid Market Uptick: What Investors Need to Know
- Jan -05 - 3 Red-Hot Growth Stocks to Buy in 2025
- Jan -03 - Palantir And Duolingo: The AI Powerhouses Driving AGIX's Success
- Dec -31 - Duolingo stock price surged in 2024: is it still a bargain?
- Dec -24 - Here's Why 2025 Could Be a Big Year for AI Stock Duolingo
- Dec -23 - Fund managers see AI delivering big gains for these 5 stocks — including Duolingo
- Dec -15 - 2 Unstoppable Artificial Intelligence (AI) Stocks Up 50% and 150% in 2024 to Buy in 2025
- Dec -13 - Duolingo: Building A Moat With AI While Expanding Subscribers
- Dec -13 - Are Business Services Stocks Lagging Duolingo (DUOL) This Year?
- Dec -11 - Duolingo Trades At Peak Valuation, Analyst Downgrades It
- Dec -11 - Analyst: Duolingo Stock Trading at "Peak Valuation"
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Subscription
Expected Growth : 23.13 %
What the company do ?
Duolingo's subscription, Duolingo Plus, offers ad-free learning, offline access, and unlimited hearts, enhancing the language-learning experience.
Why we expect these perspectives ?
Duolingo's subscription growth of 23.13% is driven by increasing demand for online language learning, fueled by a growing global workforce, travel, and education. The app's gamification, AI-powered learning, and freemium model attract users. Strong brand recognition, user engagement, and retention also contribute to the growth, as well as the company's expansion into new markets and languages.
Segment n°2 -> Advertising
Expected Growth : 19.9 %
What the company do ?
Duolingo's advertising model offers branded content, sponsored lessons, and in-app ads, generating revenue without compromising the learning experience.
Why we expect these perspectives ?
Duolingo's 19.9% advertising growth is driven by increasing mobile usage, gamification-based engagement, and effective user acquisition strategies. The platform's freemium model, with a large user base, provides a lucrative opportunity for advertisers. Additionally, Duolingo's AI-powered ad targeting and measurement capabilities enhance ad effectiveness, attracting more advertisers and driving revenue growth.
Segment n°3 -> Duolingo English Test
Expected Growth : 23.33 %
What the company do ?
The Duolingo English Test is a online English proficiency exam that evaluates reading, writing, listening, and speaking skills, offering a convenient and affordable alternative to traditional English language tests.
Why we expect these perspectives ?
Duolingo English Test's 23.33% growth is driven by increasing demand for online language learning, fueled by globalization and remote work. The platform's gamification, AI-powered adaptive technology, and free access attract a large user base. Strategic partnerships with universities and governments, as well as the test's acceptance by top institutions, further boost its popularity.
Segment n°4 -> In-app Purchases
Expected Growth : 20.47 %
What the company do ?
Duolingo's in-app purchases offer premium features, such as ad-free learning, unlimited hearts, and progress tracking, to enhance the language-learning experience.
Why we expect these perspectives ?
Duolingo's 20.47% growth in in-app purchases is driven by its gamification approach, making language learning engaging and fun. The app's freemium model, offering a limited free version and a premium subscription, encourages users to upgrade. Additionally, Duolingo's AI-powered chatbots and interactive exercises provide a personalized learning experience, increasing user retention and willingness to pay.
Segment n°5 -> Other
Expected Growth : 11.67 %
What the company do ?
Duolingo's 'Other' category includes languages not commonly taught, such as Hawaiian, Welsh, and Scottish Gaelic, offering a unique learning experience.
Why we expect these perspectives ?
Duolingo's 11.67% growth in 'Other' segment is driven by increasing adoption of its language learning platform in emerging markets, expansion of its B2B offerings, and growing demand for its AI-powered language assessment tools. Additionally, the company's strategic partnerships and investments in new technologies, such as augmented reality, are contributing to its growth momentum.
Duolingo, Inc. Products
| Product Range | What is it ? |
|---|---|
| Duolingo Language Learning Platform | A free language-learning platform that offers courses in over 30 languages, with interactive lessons, quizzes, and games. |
| Duolingo English Test | A standardized English proficiency test that evaluates reading, writing, listening, and speaking skills, accepted by universities and institutions worldwide. |
| Duolingo for Schools | A platform that provides language learning resources and tools for teachers and students, including lesson plans, progress tracking, and classroom management features. |
| Duolingo Events | A feature that allows users to participate in live, interactive language learning sessions, led by certified teachers or native speakers. |
| Duolingo Podcast | A podcast that explores real-life stories and conversations in different languages, with accompanying language learning exercises and quizzes. |
Duolingo, Inc.'s Porter Forces
Threat Of Substitutes
Duolingo's gamification and interactive approach to language learning makes it difficult for substitutes to emerge, as users are highly engaged and loyal to the platform.
Bargaining Power Of Customers
While customers have some bargaining power due to the availability of alternative language learning platforms, Duolingo's free and high-quality content reduces the likelihood of customers switching to competitors.
Bargaining Power Of Suppliers
Duolingo's business model is not heavily reliant on suppliers, and the company has a high degree of control over its content creation and distribution, reducing the bargaining power of suppliers.
Threat Of New Entrants
While there are barriers to entry in the language learning market, new entrants can still emerge, especially with the rise of AI-powered language learning tools. However, Duolingo's established brand and user base provide a competitive advantage.
Intensity Of Rivalry
The language learning market is highly competitive, with many established players and new entrants vying for market share. Duolingo must continue to innovate and improve its offerings to maintain its market position.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 3.68% |
| Debt Cost | 3.95% |
| Equity Weight | 96.32% |
| Equity Cost | 8.01% |
| WACC | 7.86% |
| Leverage | 3.82% |
Duolingo, Inc. : Quality Control
Duolingo, Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| PCTY | Paylocity Holding Corporation provides cloud-based human capital management and payroll software solutions for workforce in the United States. The company offers Payroll and Tax Services solution to simplifies payroll, automates … |
| CWAN | Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities. … |
| APPF | AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry. The company offers AppFolio Property Manager, a platform to leverage process automation, easy to … |
| GWRE | Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a … |
| LYFT | Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer riders personalized and on-demand access to various … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Paylocity
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Duolingo
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AppFolio
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Clearwater Analytics
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5
Guidewire Software
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