Duolingo (DUOL) 18th Annual Emerging Technology Summit summary

2024 performance and 2025 priorities

• Achieved record growth in subscribers, daily active users (DAU), and bookings in 2024, with Q4 exceeding expectations.

• Ran a successful annual New Year's promotion, especially boosting Family Plan adoption.

• Max product saw significant growth, aided by the launch of Video Call with Lily and expansion to Android.

• Guided for over $1 billion in bookings and 27% constant currency growth in 2025.

• Focus for 2025 includes optimizing Super, Family Plan, and enhancing Max engagement.

Max product strategy and monetization

• Max now represents 5% of paid subscribers, with most DAUs now eligible to purchase.

• Plans to make Video Call with Lily more engaging and optimize Max's price point.

• Internal ads and free trials are being tested to drive Max adoption.

• Prioritizing engagement improvements over cost optimization in early 2025, expecting AI costs to decline.

• Max delivers higher gross profit per subscriber despite lower margins due to AI costs.

User growth, engagement, and social features

• DAU grew 51% in Q4, with mid-40s growth expected in Q1, scaling from 10 million to over 40 million DAU since IPO.

• Social-first marketing and viral mascot campaigns have driven massive engagement.

• Social features like streaks with friends engage about a third of DAUs and drive retention.

• Engagement is measured through various metrics, with social mechanics playing a key role.