Language-learning app Duolingo (NASDAQ:DUOL) will be reporting results tomorrow after market close. Here’s what you need to know.
Duolingo met analysts’ revenue expectations last quarter, reporting revenues of $178.3 million, up 40.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 103.6 million users, up 39.8% year on year.
Is Duolingo a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Duolingo’s revenue to grow 37.5% year on year to $189.2 million, slowing from the 43.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.94 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Duolingo has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.2% on average.
Looking at Duolingo’s peers in the consumer subscription segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Roku reported revenues up 16.5%, topping estimates by 4.5%. Netflix’s stock price was unchanged after the results, and Roku’s price followed a similar reaction.
Read our full analysis of Netflix’s results here and Roku’s results here.
There has been positive sentiment among investors in the consumer subscription segment, with share prices up 6.3% on average over the last month. Duolingo is up 3.7% during the same time and is heading into earnings with an average analyst price target of $273.65 (compared to the current share price of $290.01).
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