Language-learning app Duolingo (NASDAQ:DUOL) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
Duolingo beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $230.7 million, up 37.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations. It reported 130.2 million users, up 33.4% year on year.
Is Duolingo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Duolingo’s revenue to grow 35% year on year to $240.8 million, slowing from the 40.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.29 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 5 upward revisions over the last 30 days (we track 16 analysts). Duolingo has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Duolingo’s peers in the consumer subscription segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 3.7%, and Roku reported revenues up 14.8%, topping estimates by 3.8%. Coursera traded up 36.2% following the results while Roku was down 15.2%.
Read our full analysis of Coursera’s results here and Roku’s results here.
Investors in the consumer subscription segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Duolingo is down 10.7% during the same time and is heading into earnings with an average analyst price target of $492.09 (compared to the current share price of $354.01).
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