Duolingo (DUOL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, with strong growth in daily active users (DAUs), bookings, revenue, and Adjusted EBITDA margin.

• DAUs reached 40 million, up 51% year-over-year, and bookings nearly tripled since IPO.

• Outperformance driven by Duolingo Max and Family Plan, with Max now at 5% of total subscribers and Family Plan at 23%.

• Strategic focus on scaling AI-powered features, expanding content, and disciplined investment for long-term growth.

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 to 25.7%.

• Expect to surpass $1 billion in bookings in 2025.

• Q4 saw highest quarterly bookings, revenue, and Adjusted EBITDA to date.

Outlook and guidance

• 2025 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 for 2025 expected to expand by nearly 200 basis points to 27.5%.

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