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According to a recent report, the global online language learning market is expected to grow 19% CAGR from 2022 through 2026, translating to incremental growth of $30 billion during the forecast period, Online language learning service provider Duolingo (Nasdaq: DUOL) recently announced their quarterly results that surpassed market expectations.

Duolingo’s Financials

Duolingo recently reported its second-quarter earnings. Its revenues grew 50% to $88.4 million, ahead of the market’s forecast by 3%. The company continues to record losses and ended the quarter with a loss of $0.38 per share compared with the market’s forecast of a loss of $0.50 per share.

During the quarter, its total bookings grew 51% to $97.5 million, and subscription bookings grew 51% to $74.1 million.

Duolingo ended the quarter with 49.5 monthly active users, up 31%, and daily active users growing 44% to 13.2 million. Its paid subscribers grew 71% to 3.3 million.

For the third quarter, Duolingo expects revenues between $93 million and $96 million. For the fiscal year, it expects revenues between $361 million and $367 million. The market forecast revenues of $94.95 million for the quarter and $365.01 million for the year.

Duolingo’s Partnerships

Duolingo continues to grow through partnerships. Recently, it announced a partnership with HBO Max for the launch of the HBO Original show “House of the Dragon”, which is a prequel to the “Game of Thrones”. The tie-up is focused on the fans of the TV show, and it will launch an updated course for High Valyrian, the language spoken in the show, to help fans prepare for the show. To promote the course, it is also rolling out an integrated marketing campaign teasing new phrases on cryptic billboards in major cities across the country, including an iconic space in Times Square.

Duolingo continues to see significant growth in the adoption of its offerings, both by individuals and by institutions. Recently, it surpassed the milestone of having more than 4,000 institutions globally accept and use the results of its Duolingo English Test (DET). The DET is an online, self-administered exam that can be taken in an hour’s time with results provided in as little as two days. The results aim to showcase an individual’s proficiency levels in English and can be used as proof of English proficiency by colleges and universities that are looking for students to meet certain English-speaking requirements. The test, priced at $49 each, brought in $4.8 million in revenues in the quarter for the company. While it remains a small portion of the quarter’s revenues, it is a high-growth one, and it will help Duolingo expand into higher-ed programs.

I have completed 890 straight days of continuous learning on Duolingo. My French has improved tremendously. I am super impressed by the quality of the app and its efficacy in keeping learners engaged!

Duolingo is currently trading at $95.7, with a market capitalization of $3.79 billion. It hit a 52-week high of $204.99 in September last year, and recovered from its 52-week low of $60.50 in February.

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