Durable Capital Partners LP, a prominent investment firm, has recently adjusted its portfolio by reducing its stake in Duolingo Inc. This article will delve into the details of the transaction, provide an overview of both Durable Capital Partners LP and Duolingo Inc, and analyze the potential implications of this move.
Details of the Transaction
On August 10, 2023, Durable Capital Partners LP reduced its holdings in Duolingo Inc by 47,351 shares, a change of -1.14%. The shares were traded at a price of $145.17 each. Following this transaction, the firm now holds a total of 4,109,387 shares in Duolingo Inc, representing 5.61% of their portfolio and 9.89% of Duolingo's total shares. The transaction had a -0.06% impact on Durable Capital Partners LP's portfolio.
Profile of Durable Capital Partners LP
Durable Capital Partners LP is an investment firm based in Chevy Chase, MD. The firm manages a portfolio of 49 stocks, with a total equity of $10.65 billion. Its top holdings include FirstService Corp, Intuit Inc, MSCI Inc, Roper Technologies Inc, and Duolingo Inc. The firm's investments are primarily concentrated in the Technology and Healthcare sectors.
Overview of Duolingo Inc
Duolingo Inc, a US-based technology company, is renowned for its mobile learning platform that offers language learning solutions. The company's products, powered by sophisticated data analytics and artificial intelligence, are designed to motivate learners and help them achieve their learning goals. Duolingo's revenue streams primarily come from time-based subscriptions, in-app advertising, and the Duolingo English Test. The company's market capitalization stands at $5.77 billion.
Analysis of Duolingo Inc's Financials
Despite its innovative business model, Duolingo's financial health raises some concerns. The company's Financial Strength is ranked 8/10, while its Profitability Rank is a low 2/10. Its Growth Rank is currently not applicable due to insufficient data. Over the past three years, Duolingo has seen a revenue growth of 61.40%, but its EBITDA and earnings have declined by -61.00% and -52.50% respectively.
Duolingo Inc's Stock Performance
Since its IPO on July 28, 2021, Duolingo's stock has seen a decrease of -1.83%. However, the stock has gained 95.7% year-to-date. Despite this growth, the stock's GF Score is a low 22/100, indicating poor future performance potential. The stock's momentum and RSI ranks are also currently not applicable due to insufficient data.
Conclusion
The recent transaction by Durable Capital Partners LP indicates a strategic adjustment in their investment in Duolingo Inc. While Duolingo's innovative business model and substantial revenue growth are promising, its declining profitability and low GF Score suggest potential challenges ahead. Investors should closely monitor the company's financial performance and stock trends for further insights.
All data and rankings are accurate as of August 12, 2023.
