2024-05-10 15:16:37 ET
Summary
- Duolingo, Inc. reported strong Q1 FY24 earnings, with revenue and earnings growing 45% and 190% YoY respectively.
- The company's focus on product innovation and creative marketing campaigns is successfully driving more Daily Active Users with growing conversion rate from freemium to paid subscribers.
- While there is a potential risk from a slowdown in consumer spending, Duolingo's management has raised guidance for revenue and earnings, making it an attractive buying opportunity.
Introduction & Investment Thesis
I last covered Duolingo, Inc. ( DUOL ) on April 1, where I upgraded my thesis from “Sell” to "Buy," as I had underestimated the company’s potential to expand its profitability, given the management’s focus on financial discipline and growing its conversion rate of users from freemium to paid....
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For further details see:
Duolingo: Great Buying Opportunity After Post-Earnings Selloff