I believe Duolingo’s gamified learning process is more engaging than what competitors can currently create using AI. The numbers show Duolingo is succeeding: revenue grew +41.5% YoY and net income rose +83.5% YoY in Q2.
For me, $DUOL is a relatively not big position (4.5% at the moment), which reflects that I also see potential competitive pressure. I’ll be closely tracking quarterly execution, paid user additions, and growth in MAUs and DAUs. If those metrics remain strong, it means Duolingo is executing well and investor fears are exaggerated — just like when ChatGPT 3.5 and 4 were released.
It’s also worth noting that AI can act as a tailwind for Duolingo, since it reduces the cost of content creation.
Great artikel. Do you think AI ( in like glasses, just like Google released) will have an impact on the way people are willing to learn a new language. If AI could translate anything real-time, how many people are still going to be on Duolingo to learn the language?
It’s hard to say for sure, but I think people use Duolingo primarily to learn a language and communicate with others through real interaction. Translators of all kinds have existed for a long time, but Duolingo continues to show strong growth in paid subscribers.
For Duolingo, what matters most is the growth in active users and how successfully the company can convert them into paying subscribers. So far, they’ve been executing this strategy very well.
Thanks Sergey!
I can't stop looking at this company. It is very compelling but I have been unable to pull the trigger yet.
Similar to Daan's question (which I think is valid but still a way's out) - What do you think about the llm's being tutor's themselves?
i.e., not translating (as in Daan's question) but being very good adaptive teachers?
Good question, thank you.
I believe Duolingo’s gamified learning process is more engaging than what competitors can currently create using AI. The numbers show Duolingo is succeeding: revenue grew +41.5% YoY and net income rose +83.5% YoY in Q2.
For me, $DUOL is a relatively not big position (4.5% at the moment), which reflects that I also see potential competitive pressure. I’ll be closely tracking quarterly execution, paid user additions, and growth in MAUs and DAUs. If those metrics remain strong, it means Duolingo is executing well and investor fears are exaggerated — just like when ChatGPT 3.5 and 4 were released.
It’s also worth noting that AI can act as a tailwind for Duolingo, since it reduces the cost of content creation.
excellent analis, good option for med and long term
Thank you!
Great artikel. Do you think AI ( in like glasses, just like Google released) will have an impact on the way people are willing to learn a new language. If AI could translate anything real-time, how many people are still going to be on Duolingo to learn the language?
It’s hard to say for sure, but I think people use Duolingo primarily to learn a language and communicate with others through real interaction. Translators of all kinds have existed for a long time, but Duolingo continues to show strong growth in paid subscribers.
For Duolingo, what matters most is the growth in active users and how successfully the company can convert them into paying subscribers. So far, they’ve been executing this strategy very well.
So we posted about DUOL on the same day?? great minds think alike.
Analysis of $DUOL is especially relevant right now, following the 39% drop from its 52-week high )))