Q2 2024 Duolingo Inc Earnings Call Transcript
Key Points
- Duolingo Inc (DUOL) reported a 59% year-over-year increase in daily active users and a 41% increase in revenue.
- The company achieved a record adjusted EBITDA margin of 27% and marked its fifth consecutive quarter of being net income positive.
- Duolingo Inc (DUOL) surpassed 100 million monthly active users and reached 8 million paying subscribers.
- The Family Plan now constitutes about 20% of subscribers, showing strong growth and engagement.
- Duolingo Max, the highest-priced tier with AI-enabled features, is expanding and expected to be available in most countries by year-end.
- Duolingo Inc (DUOL) expects DAU growth to decelerate to about 50% in the second half of the year due to strong prior year comparisons.
- Gross margin is expected to decline slightly in the back half of the year due to increased amortization and AI costs.
- The company faces challenges in maintaining the extraordinary growth rates experienced in the previous year.
- There is uncertainty in the macroeconomic environment, although Duolingo Inc (DUOL) has not yet seen a significant impact.
- The rollout of Duolingo Max is still in progress, and its full impact on the P&L is expected to be seen in 2025.
Good evening, everyone, and welcome to Duolingo's second quarter 2024 Earnings Webcast. I'm Debbie Belevan, Head of Investor Relations. Today after market closed, we released this quarter's shareholder letter, a copy of which you can find on our IR website at investors.duolingo.com.
On today's call, we have Luis von Ahn, our Co-Founder and CEO; and Matt Skaruppa, our CFO. They'll begin with some brief remarks before opening the call to questions.(Operator Instructions) And please note, this event is being recorded. (Operator Instructions)
Just a reminder, we'll make forward-looking statements regarding future events and financial performance, which are subject to material risks and uncertainties. Some of these risks have been set forth in the risk factors of our filings with the SEC. These forward-looking statements are based on assumptions that we believe to be reasonable as of today, and we have no obligation to update these statements as a result of new information or future events.
Additionally, we'll present both GAAP and
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