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Duolingo Beats Q1 Targets as Shares Slide on Slower Bookings Outlook

Management is steering spending to AI-powered speaking features with payoffs expected from 2027.

Overview

  • Investors sent the stock down about 14% in after-hours trading after the company paired a first-quarter beat with a cautious view on bookings growth.
  • Revenue reached $292.0 million with daily active users at 56.5 million and paying subscribers at 12.5 million, as both user and subscriber counts rose 21% year over year.
  • The company kept its full-year revenue outlook near $1.21 billion and guided second-quarter revenue to about $295.5 million, while forecasting roughly 10.5% bookings growth for 2026.
  • CFO Gillian Munson said Duolingo is prioritizing engagement and product quality over near-term monetization, with most returns from current investments expected in 2027 or later.
  • Spending is focused on AI tools such as the Duolingo Max tier and improved speaking features, which the company said could trim margins later this year, and the long-term plan targets 100 million daily users by 2028.