Duolingo (DUOL) The Citizens JMP Technology Conference summary

User growth and engagement

• Both attracting new users and re-engaging lapsed users are key, with focus shifting by geography; mature markets prioritize re-engagement, while newer markets focus on acquisition.

• User engagement is the primary driver, with no differentiation between casual and advanced learners in product design; all users are engaged equally to maximize retention and conversion.

• Advanced features like the Max tier, especially Video Call, appeal to advanced English learners and are seeing higher adoption in certain markets like Japan.

• Most user growth is organic, driven by word of mouth and viral content, with brand awareness highest in the U.S. and South America, and lower in Western Europe and Japan.

• AI-driven content expansion and A/B testing have accelerated product improvements and user engagement globally.

Monetization and product evolution

• The Max subscription tier, priced at twice the Super tier, saw rapid adoption, reaching 5% of subscribers by year-end, with strong uptake among English learners.

• Both new users and existing Super subscribers are converting to Max, with early data showing high retention and conversion rates, making it the highest LTV tier.

• Localized pricing was introduced in 2022 to normalize for purchasing power, and ongoing pricing experiments are now frequent, especially for Max.

• The biggest ARPU opportunity is shifting users from free to Super, Family, or Max, rather than just price increases.

• As AI reduces costs, more engaging features like Video Call may be expanded, further driving engagement and monetization.

Operational strategy and retention

• Continuous product improvement, driven by daily A/B testing and AI, is the main lever for both user and subscriber retention.

• The "Green Machine" process underpins experimentation, with no sign of diminishing returns as user base and app features evolve.

• Retention and conversion improvements are expected to continue as the product becomes more engaging and personalized.