Duolingo Posts Double Beat in Q2: Here's Why the Stock is Falling Wednesday

Duolingo Inc (NASDAQ: DUOL ) reported second-quarter financial results Wednesday after market close. • Duolingo stock is taking a hit today.

See analyst ratings here.

Here are the key highlights.

Duolingo Q2 Earnings Duolingo reported second-quarter revenue of $298.45 million, up 18% year-over-year.

The revenue total beat a Street consensus estimate of $295.62 million, according to data Pro.

The company reported quarterly earnings of 66 cents per share, beating a Street estimate of 61 cents per share.

Duolingo reported 58.7 million daily active users in the quarter, up 23% year-over-year.

Paying subscribers rose 17% year-over-year in the quarter, hitting 12.7 million in the quarter. "We believe our user growth acceleration is due to three factors: product changes, marketing impact, and a one-time event to revive lost streaks.

Since two of these are permanent, we expect DAU year-over-year growth throughout the rest of the year to remain above the 20% we had previously guided to," Duolingo CEO Luis von Ahn said.

What’s Next for Duolingo Duolingo is guiding for third-quarter revenue of $302 million, up 11.1% year-over-year.

The Street expects revenue of $304.1 million.

The company raised its full-year revenue guidance from $1.205 billion to $1.207 billion, expecting year-over-year growth of 16.3%.

The Street expects full-year revenue of $1.2088 billion.

The stock is trading lower based on the updated guidance figures. “Our ambition is to teach a billion people, and every step we take toward a better product brings us closer to that goal," von Ahn said.

Duolingo Stock Price Action Duolingo stock is down 11.54% to $119.70 in after-hours trading Wednesday versus a 52-week trading range of $87.89 to $468.

Read Also: Analyst Ratings for Duolingo Stock Image via Shutterstock