Duolingo stock soared more than 20% Thursday after the mobile language learning platform reported better-than-expected fourth-quarter earnings and revenue, along with a slew of other strong business metrics late Wednesday.
The Pittsburgh-based company announced Q4 earnings of 26 cents per share, up from a 35 cent-per-share loss a year ago. Meanwhile, Duolingo Q4 revenue grew 45% to $151 million Analysts predicted EPS of 4 cents on $148.3 million in sales. Duolingo had previously forecast Q4 sales between $145 million-$148 million.
Chief Executive Luis von Ahn said in the earnings release that "2023 was an exceptional year that exceeded our own high expectations."
"It was capped off with a very strong Q4 that saw us achieve record bookings, revenue and profitability," he said.
The Duolingo chief also stressed how the platforms daily active users increased 65% while monthly active users increased 46% in the fourth quarter. The company also reported that the number of paid subscribers grew 57% in Q4.
Duolingo projects 2024 revenue between $717.5 million-$729.5 million. Wall Street forecasts sales of $723.4 million.
Duolingo Stock Soars
DUOL shares soared 22.2% to 239 Thursday morning during market action. The move signals a gap above the stock's 50-day moving average as it works up the right side of a consolidation.
On Wednesday, Duolingo stock gained 0.5% to 195.51. Duolingo stock has an official 245.87 buy point.
Meanwhile, DUOL shares received a slew of price target hikes early Thursday after the company's Q4 results. Piper Sandler analyst Arvind Ramnani raised the firm's price target on Duolingo to 282, from 217, and maintained an overweight rating on the shares.
Bank of America also hiked its DUOL price target to 260, up from 230, and kept a neutral view on the stock.
Barclays joined in the action, raising Duolingo's price target to 243 from 173, while noting that the company remains one of the "best growth stories in internet."
DUOL stock's move on earnings early Thursday comes after the shares soared 21.37% on Nov. 9, the day following Duolingo's Q3 earnings.
The stock has an 89 Composite Rating out of a best-possible 99. Shares also have an 85 Relative Strength Rating and an 81 EPS Rating.
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