Duolingo (NASDAQ:DUOL) stock is surging higher by around 20% after the language learning company reported a double beat in its fourth-quarter earnings. During the quarter, revenue tallied in at $151 million, up by 45% year-over-year (YOY) and beating the analyst estimate for $148.3 million. EPS was 26 cents compared to a loss of 35 cents a year ago and beating the analyst estimate for 4 cents.
“We accelerated DAU growth in each quarter of 2023, and in Q4 achieved record-high user engagement and a record number of subscribers,” said co-founder and CEO Luis von Ahn. “Our performance resulted from our pursuit of product excellence and innovation, the progress we’ve made building an iconic brand, and disciplined execution.”
As mentioned by von Ahn, Duolingo also reported strong growth in its users. Daily active users (DAUs) grew by 65% to 26.9 million while monthly active users (MAUs) grew by 46% to 88.4 million.
Guidance was solid as well. The company expects 2024 revenue between $717.5 million and $729.5 million, or $723.5 million at the midpoint. Analysts were expecting $723.4 million. For Q1, revenue is forecast to be between $164 million and $167 million.
5 Investors Betting Big on DUOL Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q4, 308 13F filers disclosed ownership of DUOL stock, a significant increase of 71 filers, or 30%, from the prior quarter. In total, these filers own 31.9 million shares, up slightly from 31.58 million shares. 11 of these filers own DUOL in their top 10 positions.
As of Dec. 31, 101 hedge funds reported ownership of Duolingo, up by 18 compared to Q3. These hedge funds own a total of 12.38 million shares, down by 1.53% compared to 12.57 million shares last quarter.
With that in mind, let’s take a look at Duolingo’s largest shareholders:
- CEO and co-founder Luis von Ahn: 3.63 million shares.
- Chief Technology Officer and co-founder Severin Hacker: 3.61 million shares.
- Baillie Gifford: 3.59 million shares. Baillie sold 895,203 shares during Q4.
- Vanguard: 3.32 million shares. Vanguard acquired 129,290 shares during Q4.
- Durable Capital Partners: 3.19 million shares. Durable sold 648,895 shares during Q4.
On the date of publication, Eddie Pan did not hold (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.
