Duolingo, Inc. Stock Research

Market Summary

USD127.37+4.46

Market Closed

3.63%

DUOL Alerts

7 major insider sales recently.
Big jump in Revenue (Y/Y)
Losses in recent quarter

DUOL Stock Price

DUOL RSI Chart

DUOL Valuation

Market Cap

1.5B

Price/Earnings (Trailing)

-20.04

Price/Sales (Trailing)

4.82

EV/EBITDA

-12.58

Price/Free Cashflow

44.17

DUOL Price/Sales (Trailing)

DUOL Profitability

Operating Margin

73.09%

EBT Margin

-15.87%

Return on Equity

-10.99%

Return on Assets

-7.97%

Free Cashflow Yield

2.26%

DUOL Fundamentals

DUOL Revenue

Revenue (TTM)

369.5M

Revenue Y/Y

42.2%

Revenue Q/Q

8.08%

DUOL Earnings

Earnings (TTM)

-59.6M

Earnings Y/Y

20.48%

Earnings Q/Q

24.48%

Price Action

52 Week Range

60.50130.50

(Low)(High)

Last 7 days

-2.8%

Last 30 days

31.7%

Last 90 days

67.6%

Trailing 12 Months

80.5%

DUOL Financial Health

Current Ratio

3.84

DUOL Investor Care

Diluted EPS (TTM)

-1.51

Financials for Duolingo

Income Statement (Last 12 Months)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	9.1%	369,495,000	338,685,000	306,215,000	276,632,000	250,772,000
Gross Profit	9.3%	270,064,000	247,072,000	222,826,000	200,975,000	181,586,000
Operating Expenses	7.6%	335,259,000	311,530,000	295,822,000	259,415,000	241,593,000
S&GA Expenses	7.2%	66,967,000	62,449,000	59,995,000	54,337,000	59,170,000
R&D Expenses	10.6%	150,444,000	135,993,000	123,362,000	111,085,000	103,833,000
EBITDA	8.3%	-53,766,000	-58,648,000	-69,924,000	-55,877,000	-57,232,000
EBITDA Margin	16.0%	-0.15	-0.17	-0.23	-0.20	-0.23
Earnings Before Taxes	6.7%	-58,636,000	-62,831,000	-73,358,000	-58,629,000	-59,958,000
EBT Margin	14.5%	-0.16	-0.19	-0.24	-0.21	-0.24
Interest Expenses	NaN%	0.00	0.00	0.00	0.00	0.00
Net Income	5.7%	-59,574,000	-63,161,000	-73,686,000	-58,817,000	-60,135,000
Net Income Margin	13.5%	-0.16	-0.19	-0.24	-0.21	-0.24
Free Cahsflow	31.1%	48,094,000	36,687,000	33,433,000	20,600,000	5,584,000

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	4.7%	747	714	701	685	661
Current Assets	4.3%	697	668	655	641	619
Cash Equivalents	1.4%	608	600	591	577	554
Net PPE	-1.7%	13.00	13.00	13.00	10.00	8.00
Liabilities	14.1%	205	180	173	164	148
Current Liabilities	16.8%	182	156	147	136	119
Shareholder's Equity	1.5%	542	534	528	521	513
Retained Earnings	-6.4%	-230	-216	-198	-183	-170
Additional Paid-In Capital	3.0%	773	750	726	704	684
Accumulated Depreciation	15.7%	7.00	6.00	6.00	5.00	-
Shares Outstanding	-	17.00	-	-	-	-

* denotes actual numbers (not divided by Millions)
Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	26.3%	54.00	42.00	38.00	25.00	9.00
Share Based Compensation	8.8%	74.00	68.00	68.00	53.00	41.00
Cashflow From Investing	-37.1%	-14.17	-10.34	-8.28	-6.87	-6.21
Cashflow From Financing	-19.6%	15.00	18.00	447	442	430
Buy Backs	NaN%	0.00	0.00	0.00	0.00	1.00

Risks for DUOL

What is the probability of a big loss on DUOL?

87.2%

Probability that Duolingo stock will be more than 20% underwater in next one year

81.4%

Probability that Duolingo stock will be more than 30% underwater in next one year.

59.3%

Probability that Duolingo stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does DUOL drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Duolingo was unfortunately bought at previous high price.

Drawdowns

Returns for DUOL

Cumulative Returns on DUOL

Which funds bought or sold DUOL recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-0.03	-70,443	207,557	-%
2023-03-10	BAILLIE GIFFORD & CO	added	5.97	-60,945,700	231,368,000	0.24%
2023-03-06	Rockefeller Capital Management L.P.	reduced	-5.66	-2,000	3,000	-%
2023-02-28	Voya Investment Management LLC	unchanged	-	-217,847	644,153	-%
2023-02-22	TEACHERS RETIREMENT SYSTEM OF THE STATE OF KENTUCKY	unchanged	-	-939,000	2,771,000	0.03%
2023-02-21	MACQUARIE GROUP LTD	sold off	-100	-3,375,000	-	-%
2023-02-21	NORTHWESTERN MUTUAL WEALTH MANAGEMENT CO	sold off	-100	-	-	-%
2023-02-15	Jasper Ridge Partners, L.P.	unchanged	-	-1,687,910	4,981,090	0.30%
2023-02-15	Chimera Capital Management LLC	new	-	777,380	777,380	0.22%
2023-02-15	ALLIANCEBERNSTEIN L.P.	unchanged	-	-679,134	2,005,870	-%

Latest Funds Activity

Are funds buying DUOL calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own DUOL

No. of Funds

Duolingo News

Schedule 13G FIlings of Duolingo

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 15, 2023	duolingo, inc.	10.7%	3,752,989	SC 13G
Feb 15, 2023	duolingo, inc.	10.8%	3,802,055	SC 13G
Feb 14, 2023	foxhaven asset management, lp	4.0%	1,251,006	SC 13G/A
Feb 14, 2023	gilder gagnon howe & co llc	2.8%	879,103	SC 13G/A
Feb 14, 2023	newview capital fund i, l.p.	3.2%	1e+06	SC 13G/A
Feb 13, 2023	durable capital partners lp	13.3%	4,156,738	SC 13G/A
Feb 13, 2023	general atlantic, l.p.	4.7%	1,479,294	SC 13G/A
Feb 09, 2023	vanguard group inc	7.86%	2,459,432	SC 13G
Feb 07, 2023	blackrock inc.	6.6%	2,050,732	SC 13G
Feb 03, 2023	kpcb digital growth fund, llc	0%	0	SC 13G/A

DUOL Fair Value

Recent SEC filings of Duolingo

View All Filings

Date Filed	Form Type	Document
Mar 08, 2023	4	Insider Trading
Mar 08, 2023	4	Insider Trading
Mar 07, 2023	4	Insider Trading
Mar 06, 2023	4	Insider Trading
Mar 06, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 03, 2023	4	Insider Trading
Mar 02, 2023	4	Insider Trading
Mar 02, 2023	4	Insider Trading
Mar 02, 2023	4	Insider Trading

Latest Insider Trading transactions for DUOL

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-07	Chen Stephen C.	sold	-1,398,370	130	-10,748	general counsel
2023-03-07	Meese Robert	sold	-650,536	130	-5,000	chief business officer
2023-03-07	Chen Stephen C.	acquired	154,986	14.42	10,748	general counsel
2023-03-06	Skaruppa Matthew	sold	-1,502,340	125	-12,000	chief financial officer
2023-03-06	Skaruppa Matthew	acquired	173,040	14.42	12,000	chief financial officer
2023-03-03	Clemens Sara	acquired	162,700	16.27	10,000	-
2023-03-03	von Ahn Luis	sold	-18,166,400	118	-153,514	president & ceo, co-founder
2023-03-03	von Ahn Luis	acquired	-	-	153,514	president & ceo, co-founder
2023-03-03	Clemens Sara	sold	-2,365,730	118	-20,000	-
2023-03-02	Glance Natalie	sold	-3,195,320	118	-27,000	chief engineering officer

About Duolingo

Luis v. Ahn

www.duolingo.com

500

Duolingo, Inc. develops a language-learning website and mobile app in the United States and China. The company offers courses in 40 different languages, including Spanish, English, French, Japanese, German, Italian, Chinese, Portuguese, and others. It also provides a digital language proficiency assessment exam. The company was incorporated in 2011 and is headquartered in Pittsburgh, Pennsylvania.

DUOL Income Statement

2022-12-31

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenues	$ 369,495	$ 250,772	$ 161,696
Cost of revenues	99,431	69,186	45,987
Gross profit	270,064	181,586	115,709
Operating expenses:
Research and development	150,444	103,833	53,024
Sales and marketing	66,967	59,170	34,983
General and administrative	117,848	78,590	43,713
Total operating expenses	335,259	241,593	131,720
Loss from operations	(65,195)	(60,007)	(16,011)
Other income	131	318	157
Other expense	(807)	(288)	(85)
Other (expense) income, net	(676)	30	72
Loss before interest income and provision for income taxes	(65,871)	(59,977)	(15,939)
Interest income	7,235	19	231
Loss before provision for income taxes	(58,636)	(59,958)	(15,708)
Provision for income taxes	938	177	68
Net loss	(59,574)	(60,135)	$ (15,776)
Net comprehensive loss	$ (59,574)	$ (60,135)
Net loss per share attributable to Class A and Class B common stockholders, basic (in usd per share)	$ (1.51)	$ (2.57)	$ (1.24)
Net loss per share attributable to Class A and Class B common stockholders, diluted (in usd per share)	$ (1.51)	$ (2.57)	$ (1.24)

DUOL Balance Sheet

2022-12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 608,180	$ 553,922
Accounts receivable	46,728	33,163
Deferred cost of revenues	35,041	24,219
Prepaid expenses and other current assets	7,234	7,967
Total current assets	697,183	619,271
Assets, Noncurrent
Property and equipment, net	12,969	8,211
Goodwill	4,050	0
Intangible assets, net	8,497	4,566
Operating lease right-of-use assets	22,508	28,369
Deferred tax assets	633	0
Other assets	1,507	894
Total assets	747,347	661,311
Current liabilities
Accounts payable	1,177	7,818
Deferred revenues	157,550	98,267
Income tax payable	1,069	113
Accrued expenses and other current liabilities	21,970	12,933
Total current liabilities	181,766	119,131
Liabilities, Noncurrent
Long-term obligation under operating leases	23,503	29,124
Total liabilities	205,269	148,255
Commitments and contingencies (Note 10)
Stockholders’ equity
Class A common stock, $0.0001 par value; 2,000,000 shares authorized as of December 31, 2022 and 2021; 31,899 and 16,645 issued and outstanding at December 31, 2022 and 2021, respectively Class B common stock, $0.0001 par value; 30,000 shares authorized as of December 31, 2022 and 2021; 8,462 and 21,627 issued and outstanding at December 31, 2022 and 2021, respectively	4	4
Additional paid-in capital	772,562	683,966
Accumulated deficit	(230,488)	(170,914)
Total stockholders’ equity	542,078	513,056
Total liabilities, convertible preferred stock and stockholders' equity	$ 747,347	$ 661,311