Shares of Duolingo, Inc. (DUOL) are soaring 34.18% in pre-market trading on Thursday following the language-learning app company's impressive second-quarter 2025 financial results and raised full-year guidance. The surge comes as investors react positively to Duolingo's strong performance and strategic moves in artificial intelligence.
Duolingo reported earnings per share of $0.91 for Q2, significantly beating analyst expectations of $0.59. Revenue climbed to $252.3 million, marking a 41% year-over-year increase and surpassing estimates of $240.7 million. The company's user base showed robust growth, with daily active users reaching 47.7 million, up 40% from the same period last year. Subscription revenue, a crucial indicator for the company, grew by an impressive 46%.
Adding to the positive sentiment, Duolingo raised its full-year 2025 guidance, now expecting annual revenue between $1.011 billion and $1.019 billion, exceeding previous estimates. The company also highlighted the success of its AI-powered "Super" and "Max" subscription tiers, which have gained traction globally. Furthermore, Duolingo announced the strategic acquisition of NextBeat, a London-based music gaming startup, signaling its intention to expand beyond language learning and enhance user engagement through innovative features.
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