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According to a recent report, the global Online Language Learning Market is estimated to grow 13% over the next few years to reach $16.1 billion by 2032. Online language learning service provider Duolingo (Nasdaq: DUOL) recently announced their quarterly results that surpassed market expectations.
Duolingo’s Financials
Duolingo’s third quarter revenues grew 40% to $192.6 million ahead of the market’s forecast of $189.2 million. The company recorded an EPS of $0.49 which was also ahead of the market’s forecast of $0.35 per share.Duolingo ended the quarter with paid subscribers climbing 47% to 8.6 million. The number was shy of the market’s expectations of 8.66 million. Daily active users grew 54% to 37.2 million and monthly active users grew 36% to 113.1 million.For the fourth quarter, Duolingo forecast revenue of $202.5-$204.5 million with an adjusted EBITDA of $48.6-$50.8 million. The market was looking for revenues of $201.4 million.
Duolingo’s Growth Initiatives
Like all other companies, Duolingo is also embracing AI in its platform. Last quarter, it introduced Video Call, an AI-based solution that is targeted at improving the language learning experience for its users. Video Call with Lily will allow Duolingo Max subscribers to have spontaneous, realistic conversations with Lily, one of Duolingo’s characters. The AI-driven feature will be able to simulate natural dialogue and provide an interactive and a personalized practice session to its users. Learners will be able to communicate with Lily in a low-pressure environment because Lily has been designed to adapt to the user’s skill level. This will help build confidence in the learners as they get an opportunity to converse in real world situations. As of now, the service is available to Duolingo Max subscribers learning English, Spanish, and French.Duolingo continued to add gamification features to the learning engine, and launched Adventures, an exploration game-like experience that takes the learners in the world of Duolingo. Users can now explore dynamic settings and storylines while they interact with characters like Oscar and Lily in the Duolingo universe. The module will allow learners to apply their language skills to realistic scenarios to help with their learning. Adventures will be available across Android and iOS devices.Last year, Duolingo had expanded beyond language learning into Music. It added more features to its music course with a partnership with Loog, a portable instrument manufacturer. Together, the two companies plan to create a portable digital piano designed for the Duolingo Music course. This will allow learners to practice Duolingo Music lessons on a three-octave digital piano. Duolingo already has a partnership with Sony Music, that will also expand to the new devices so that learners will be able to play along to songs from some of their favorite artists.
Duolingo’s Hobbes Acquisition
Earlier this summer, Duolingo announced the acquisition of Detroit-based design studio, Hobbes, for an undisclosed sum. Hobbes called itself a motion design studio that focused on creative solutions in product design and emerging technology that improved user experiences. Its client list included tech companies like Google, YouTube, along with others like Ford.Hobbes was already working with Duolingo for over a year to develop some of its animation, product architecture along with focusing on the development of Duolingo Music. Duolingo remains committed to the idea of gamification of the learning process. The acquihire will help Duolingo strengthen its ability to use motion-design technology within its offerings. As part of the deal, Hobbes’ 12 designers, motion animators, creative strategists, creative directors, and producers will form Duolingo’s first-ever dedicated motion design team.Duolingo is currently trading at $335.22, with a market capitalization of $14.7 billion. It hit a 52-week high of $378.48 earlier this month. It has climbed from the 52-week low of $145.05 that it had fallen to in August.More By This Author:Cloud Stocks: MongoDB Focuses On AI Platform Development
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