Duolingo Reports 38% Revenue Growth to $230.7 Million in Latest Quarter

Duolingo, Inc. reported significant financial growth in its latest quarterly results, with revenues reaching $230.7 million for the three months ended March 31, 2025, a 38% increase from $167.6 million in the same period last year. The company's net income also rose to $35.1 million, up 30% from $27.0 million in the prior year. This growth was primarily driven by a 45% increase in subscription revenue, which totaled $191.0 million, attributed to a rise in the average number of paid subscribers, which reached approximately 10.3 million, a 40% increase year-over-year.

In terms of operational metrics, Duolingo reported 130.2 million monthly active users (MAUs) and 46.6 million daily active users (DAUs) for the quarter, representing increases of 33% and 49%, respectively, compared to the previous year. The company also noted a substantial rise in subscription bookings, which totaled $232.2 million, marking a 44% increase from $161.5 million in the same quarter of 2024. Total bookings, which include subscription bookings and other revenue streams, reached $271.6 million, a 38% increase year-over-year.

Duolingo's operating expenses also increased, totaling $140.5 million, up 33% from $105.9 million in the prior year. The rise in expenses was driven by higher research and development costs, which increased by 38% to $70.4 million, reflecting the company's commitment to enhancing its product offerings. Sales and marketing expenses rose by 34% to $26.7 million, while general and administrative expenses increased by 24% to $43.5 million. The company attributed these increases to higher personnel costs and investments in marketing initiatives.

The company continues to maintain a strong balance sheet, with cash and cash equivalents totaling $884.0 million and short-term investments of $115.3 million as of March 31, 2025. Duolingo's deferred revenue, primarily from subscription services, stood at $415.0 million, indicating a solid pipeline of future revenue. Looking ahead, Duolingo expressed confidence in its ability to sustain growth, driven by ongoing product enhancements and user engagement strategies, although it acknowledged potential challenges related to market conditions and competition in the online language learning sector.