Duolingo logged higher revenue in the latest quarter after seeing a surge in its subscription topline performance, and raised its outlook for the year.
Duolingo shares rose over 5% in after-hours trading.
The language-learning app on Wednesday posted a second-quarter profit of $24.4 million, or 51 cents a share, compared with $3.73 million, or 8 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings per share of 32 cents.
Revenue jumped 41% to $178.3 million, beating the $177.1 million expected by analysts, according to FactSet. Duolingo had most recently guided for quarterly revenue of $175 million to $177.5 million. Subscription revenue rose 51% to $143.9 million.
Duolingo ended the quarter with a paid subscriber base of 8 million, up 52% from the prior-year period, and up from 7.4 million in the first quarter. Daily active users surged 59% from the prior-year quarter to 34.1 million, increasing from 31.4 million in the prior quarter.
Chief Executive Luis von Ahn said the company's seeing record high levels of engagement, with 20% of its total daily active users using the app every day for longer than a year.
Duolingo Max comprised about 15% of total daily active users, with the family plan, its fastest growing plan, accounting for about 20% of subscribers.
"Max is included in the guide, but it's going to be the most material in 2024," finance chief Matthew Skaruppa said. "We're hopeful we'll make it more accessible to folks around the world and will be revenue generator for years to come."
For 2024, Duolingo said it now expects revenue of $731.3 million to $738.3 million. Wall Street is looking for $733.4 million. The company had previously forecast full-year revenue of $726.5 million to $735.5 million. Wall Street forecasts third-quarter revenue of $188.1 million and full-year revenue of $733.4 million.
Duolingo also sees third-quarter bookings of $194.5 million to $197.5 million, and full-year bookings of $820.5 million to $827.5 million, representing some deceleration in the second half of the year, Skaruppa said.
When asked about the state of its consumer, Skaruppa said that Duolingo didn't see any evidence of its customer base being impacted by the macro environment.
"We didn't see it in 2024," Skaruppa said, "but we're on the lookout, because we see what people see around the world."
