Duolingo Inc. has outperformed Wall Street’s Q3 revenue expectations, driven by the rapid adoption of its AI-powered premium offerings and a significant surge in paid subscriptions. The language-learning app reported $271.7 million in revenue, surpassing analyst estimates of $260.3 million, and raised its full-year outlook to $1.028–$1.032 billion. Shares rose 7% in after-hours trading.
The Pittsburgh-based edtech firm, known for its playful yet effective learning model, has successfully integrated generative AI into its premium tiers – Super Duolingo and Duolingo Max – offering advanced features like personalized lessons, instant feedback, and ad-free learning.
CEO Luis von Ahn highlighted that Duolingo is among the few companies making AI profitable, not just innovative. “We’ve found a way to make AI pay for itself – and then some,” he said. The company posted an impressive operating margin of 72.5%, exceeding expectations of 71.4%.
Paid users grew 34% year-on-year to 11.5 million, fueled by international momentum – especially in China, where a creative partnership with Luckin Coffee helped drive massive engagement. Over 10 million Duolingo-themed drinks were sold across 26,000 stores, significantly boosting app downloads and brand visibility.
Duolingo’s viral marketing strategy, gamified learning experience, and efficient user acquisition continue to position it as a leader in the global edtech space.
With AI innovation and global expansion at its core, Duolingo looks set to sustain its strong growth trajectory into 2025 and beyond.
