Language learning app Duolingo (NASDAQ:DUOL) will report results tomorrow after the market closes. Here’s what you need to know.
Last quarter, Duolingo beat analysts’ revenue expectations by 1.8%, reporting revenue of $151 million, up 45.4% year over year. This was a very strong quarter for the company, with impressive user growth and exceptional revenue growth. It reported 6.6 million users, up 57.1% from last year.
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Analysts expect Duolingo’s revenue to rise 43.2% year over year to $165.7 million this quarter, on par with the 42.4% growth recorded in the same quarter last year. Adjusted earnings are expected to be $0.77 per share.
Most analysts covering the company have reiterated their estimates over the past 30 days, suggesting they expect the business to continue on its earnings path. Duolingo has a history of beating Wall Street expectations, beating revenue estimates by an average of 3% each time over the past two years.
Looking at Duolingo’s competitors in the consumer subscription space, several of them have already reported their first-quarter results, giving us a hint of what we can expect. Coursera posted year-over-year revenue growth of 14.5%, matching analysts’ expectations, while Chegg (NYSE:) reported a 7.1% decline in revenue, in line with consensus estimates. Coursera shares fell 14.1% at the close of trading, while Chegg shares also fell 28.1%.
Read the full analysis of Coursera and Chegg results on StockStory.
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Investors in the consumer subscriptions segment have made strong gains, with share prices unchanged over the past month. Duolingo shares are up 13% over the same period and are approaching earnings, with an average analyst price target of $251.6 (versus the current share price of $247.61).