Language-learning app Duolingo (NASDAQ: DUOL) will be reporting earnings this Monday after market hours. Here’s what to expect.
Duolingo beat analysts’ revenue expectations last quarter, reporting revenues of $282.9 million, up 35% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly. It reported 133.1 million users, up 14.1% year on year.
Is Duolingo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Duolingo’s revenue to grow 25.1% year on year, slowing from the 37.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Duolingo has a history of exceeding Wall Street’s expectations.
Looking at Duolingo’s peers in the consumer subscription segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Roku delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 3.6%, and Coursera reported revenues up 9.1%, in line with consensus estimates. Roku traded up 6% following the results while Coursera was down 11.6%.
Read our full analysis of Roku’s results here and Coursera’s results here.
There has been positive sentiment among investors in the consumer subscription segment, with share prices up 11.1% on average over the last month. Duolingo is up 13.3% during the same time and is heading into earnings with an average analyst price target of $104.97 (compared to the current share price of $112.61).
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