Duolingo (DUOL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, with daily active users (DAUs) reaching 40 million, up 51% year-over-year, and highest-ever bookings, revenue, and Adjusted EBITDA driven by strong Duolingo Max and Family Plan adoption.

• Since IPO, nearly tripled bookings, added 30 million DAUs, and improved Adjusted EBITDA margin to 25.7% in 2024.

• Strategic focus on scaling AI-powered features, expanding content, and disciplined investment to balance growth and profitability.

Financial highlights

• Q4 bookings grew 42% year-over-year; revenue increased 39% year-over-year.

• Full-year Adjusted EBITDA margin expanded by about 8 points; ended 2024 with a 25.7% Adjusted EBITDA margin.

• Family Plan now represents 23% of total subscribers, showing higher retention and LTV than individual plans.

Outlook and guidance

• 2025 guidance: bookings expected to grow 25% year-over-year at midpoint (27% constant currency), with subscription bookings up 31%.

• Q1 2025 bookings projected to grow 28% year-over-year (32% constant currency), driven by 35% growth in subscription bookings.

• Adjusted EBITDA margin expected to expand by nearly 200 basis points to 27.5% in 2025; incremental margin between 30% and 35%.

• Temporary 170 basis points year-over-year impact on gross margin in 2025 due to Max, with improvement expected in the second half as AI costs are optimized.