Duolingo IPO: 7 Things for Potential DUOL Stockholders to Know

Amid a rush to equity markets, a number of new IPOs are scheduled to take place shortly. One of the most highly anticipated such IPOs is that of language-learning app Duolingo. The exact timing of the Duolingo IPO is unknown. That said, the company filed its IPO prospectus on Monday, and is expected to finalize more details following its roadshow.

The Duolingo (DUOL) logo on a smartphone screen with a map in the background.

Source: DANIEL CONSTANTE / Shutterstock.com

Until then, investors will have to wait to learn the trading range and valuation Duolingo will seek. Currently, the company has put a $100 million figure in its S-1 filing, though it’s expected that number will change closer to the IPO date.

As a key language-learning software, Duolingo is a company that has benefited greatly from the pandemic. With folks stuck at home with nothing better to do, learning another language morphed from a long-term goal to a near-term task. Indeed, with over 95 courses in 38 languages, Duolingo’s offering is robust. And investors seem to like the traction this company has received.

Accordingly, let’s dive into some of the details around Duolingo and why investors are getting excited about this IPO.

Anticipation Around Duolingo IPO Growing

  • According to the company’s S-1 filing, Duolingo has shown solid growth over the past year.
  • Revenues for this past quarter jumped 97% year-over-year, with losses narrowing to only $13.5 million on $55 million in revenue.
  • Total year revenue stood at $162 million, representing a growth rate of 129% year-over-year.
  • A majority of the company’s revenue comes from the Apple (NASDAQ:AAPL) store. However, the company’s revenue streams are diverse, and span various other channels.
  • The company is one of the most highly valued startups in Pittsburgh history, according to recent reports.
  • Its backers include Kleiner Perkins, Union Square Ventures and CapitalG.
  • This deal is expected to be led by Goldman Sachs (NYSE:GS), Barclays (NYSE:BCS), Allen & Company and Evercore ISI.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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