Previous Close | $391.86 |
Intrinsic Value | $2,483.50 |
Upside potential | +534% |
Data is not available at this time.
Duolingo, Inc. operates in the digital education and language-learning sector, leveraging a freemium model to monetize its platform. The company generates revenue primarily through subscription services (Duolingo Plus), in-app purchases, and advertising, catering to a global user base seeking accessible language education. Its gamified approach differentiates it from traditional learning platforms, driving high user engagement and retention. Duolingo holds a dominant position in the mobile-first language-learning market, competing with niche players and broader education platforms. The company benefits from network effects as its user base grows, reinforcing its market leadership. Its scalable technology and data-driven personalization further enhance its competitive edge, positioning it for sustained growth in the expanding digital education industry.
Duolingo reported revenue of $748 million for FY 2024, reflecting strong top-line growth driven by subscription uptake and advertising. Net income stood at $88.6 million, with diluted EPS of $1.88, indicating improving profitability. Operating cash flow of $285.5 million highlights efficient cash generation, while capital expenditures of -$12.1 million suggest disciplined investment in growth.
The company demonstrates robust earnings power, with positive net income and healthy operating cash flow. Capital efficiency is evident in its ability to scale revenue without significant capital outlays, supported by a scalable digital platform. The absence of dividends allows reinvestment into product development and market expansion.
Duolingo maintains a strong balance sheet, with $785.8 million in cash and equivalents against total debt of $54.7 million, indicating ample liquidity and low leverage. The company’s financial position supports continued growth initiatives and potential strategic investments.
Revenue growth trends underscore Duolingo’s expanding user base and monetization capabilities. The company does not pay dividends, prioritizing reinvestment in technology and global expansion to capture market share in the digital education space.
Market expectations for Duolingo reflect optimism about its scalable model and leadership in language learning. Valuation metrics likely incorporate premium growth prospects, given its strong revenue trajectory and profitability improvements.
Duolingo’s strategic advantages include its gamified platform, data-driven personalization, and global reach. The outlook remains positive, with opportunities to expand into adjacent education verticals and enhance monetization through new features and partnerships.
Company filings (10-K), investor presentations
show cash flow forecast
Fiscal year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | |
INCOME STATEMENT | ||||||||||||||||||||||||||
Revenue growth rate, % | NaN | |||||||||||||||||||||||||
Revenue, $ | NaN | |||||||||||||||||||||||||
Variable operating expenses, $m | NaN | |||||||||||||||||||||||||
Fixed operating expenses, $m | NaN | |||||||||||||||||||||||||
Total operating expenses, $m | NaN | |||||||||||||||||||||||||
Operating income, $m | NaN | |||||||||||||||||||||||||
EBITDA, $m | NaN | |||||||||||||||||||||||||
Interest expense (income), $m | NaN | |||||||||||||||||||||||||
Earnings before tax, $m | NaN | |||||||||||||||||||||||||
Tax expense, $m | NaN | |||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||
Cash and short-term investments, $m | NaN | |||||||||||||||||||||||||
Total assets, $m | NaN | |||||||||||||||||||||||||
Adjusted assets (=assets-cash), $m | NaN | |||||||||||||||||||||||||
Average production assets, $m | NaN | |||||||||||||||||||||||||
Working capital, $m | NaN | |||||||||||||||||||||||||
Total debt, $m | NaN | |||||||||||||||||||||||||
Total liabilities, $m | NaN | |||||||||||||||||||||||||
Total equity, $m | NaN | |||||||||||||||||||||||||
Debt-to-equity ratio | NaN | |||||||||||||||||||||||||
Adjusted equity ratio | NaN | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
Depreciation, amort., depletion, $m | NaN | |||||||||||||||||||||||||
Funds from operations, $m | NaN | |||||||||||||||||||||||||
Change in working capital, $m | NaN | |||||||||||||||||||||||||
Cash from operations, $m | NaN | |||||||||||||||||||||||||
Maintenance CAPEX, $m | NaN | |||||||||||||||||||||||||
New CAPEX, $m | NaN | |||||||||||||||||||||||||
Total CAPEX, $m | NaN | |||||||||||||||||||||||||
Free cash flow, $m | NaN | |||||||||||||||||||||||||
Issuance/(repurchase) of shares, $m | NaN | |||||||||||||||||||||||||
Retained Cash Flow, $m | NaN | |||||||||||||||||||||||||
Pot'l extraordinary dividend, $m | NaN | |||||||||||||||||||||||||
Cash available for distribution, $m | NaN | |||||||||||||||||||||||||
Discount rate, % | NaN | |||||||||||||||||||||||||
PV of cash for distribution, $m | NaN | |||||||||||||||||||||||||
Current shareholders' claim on cash, % | NaN |