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Duolingo, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a total revenue of $192.6 million for the quarter, representing a 40% increase from the same period in the previous year. Subscription revenue increased by 49% to $157.6 million, driven by an increase in paid subscribers.
Cost of revenues for the quarter was $52.2 million, representing 27% of total revenues, compared to 26% in the same quarter of the previous year. Gross profit for the quarter was $140.4 million, with a gross margin of 72.9%.
Research and development expenses increased by 25% to $62.9 million, attributed primarily to increased personnel costs and headcount growth. Sales and marketing expenses rose by 15% to $25.6 million, driven by increased direct marketing and personnel costs.
General and administrative expenses increased by 15% to $38.4 million, due to increased personnel costs, professional fees, and facility-related costs.
Net income for the quarter was $23.4 million, compared to $2.8 million in the previous year. The company reported an adjusted EBITDA of $47.5 million, up from $22.5 million in the previous year.
Duolingo reported cash and cash equivalents of $854.4 million as of September 30, 2024. Net cash provided by operating activities was $202.2 million for the nine months ended September 30, 2024, an increase from $104.4 million in the previous year.
The company highlighted risks related to competition in the online language learning industry, reliance on third-party platforms, and regulatory compliance, among others.
Duolingo continues to focus on expanding its user base and enhancing its product offerings, including the use of AI technologies in its products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Duolingo Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.