Duolingo, founded by Luis von Ahn and Severin Hacker, is a revolutionary language-learning platform that has transformed the way millions of people around the world acquire new language skills.
The company was officially launched in 2011, and it quickly gained recognition for its innovative approach to language education. The founders, both computer scientists, aimed to create a platform that made learning a new language accessible to anyone, regardless of their financial resources.
Now, let’s look at key Duolingo statistics in 2024.
| Launch Date | 30/ 11 / 2011 |
| Business Model | Freemium Model |
| Business type | Public (NASDAQ: DUOL) |
| CEO | Luis von Ahn |
| Industry | Language learning platforms |
| Subsidiaries | Dos Lenguas LLC, Duolingo Mexico S. de R.L. de C.V., Beijing Duolingo Technology Co., Ltd., Duolingo Germany GmbH |
| HQ | Pittsburgh, Pennsylvania - USA |
Duolingo's global learner community exceeds 500 million users, highlighting the platform's significant impact on language education and positioning it as one of the most downloaded educational apps.
Since its creation, the founders recognized that traditional language learning methods could be boring and expensive. In response, they designed Duolingo to be a fun and engaging experience, with interactive lessons, quizzes, and a sense of progression through a skill tree, that's why one of the most unique aspects of Duolingo is its gamified and user-friendly interface.
According to the Second Quarter 2023 Duolingo’s Report, the total bookings of the app grew 41% from the Q2 of 2022, representing $137.5 million. “We delivered exceptional results this quarter, with our continued strong user growth helping to drive our excellent financial performance,” said Luis von Ahn, Co-Founder and CEO of Duolingo.
Beyond individual learners, Duolingo has also made significant strides in the education sector. The Duolingo for Schools program has been adopted by thousands of educators and institutions worldwide, with over 1 million teachers and students using the platform for classroom-based language instruction.
Duolingo raked in $126.8 million in Q2 2023 alone, putting it on track to surpass last year's revenue of $369.5 million and its 2021 revenue of $250 million.
The revenue generated by Duolingo is of paramount importance as it fuels the company's sustainability and drives its ability to provide accessible language education to millions of users worldwide.
Duolingo operates on a freemium model, offering a substantial portion of its language-learning content and features for free to a vast user base. However, this free access is made possible through revenue streams, primarily from Duolingo Plus subscriptions and advertising.
Duolingo Monthly Active Users (MAU) are instrumental in measuring the sustained engagement and growth of the platform. These users represent the diverse global community of language learners who choose
Monthly active users grew 50% from 2022, which is 74.1 million users, this metric provides critical insights into the long-term appeal and effectiveness of the approach to language education.
MAU metric helps the company to assess user retention, track seasonal trends, and adapt the content and features to cater to the evolving needs of learners.
Daily Active Users (DAU) are of paramount importance to Duolingo as they represent the heartbeat of the language-learning ecosystem. These users signify not just engagement but commitment – individuals who return to the platform daily to enhance their language skills.
The daily active users are 21.4M, which represents an increase of 62% in comparison to the prior year quarter. This sustained interaction fosters a more effective learning experience, enabling users to make steady progress in their language journeys. It's also a testament to Duolingo's ability to make language learning a habit, which is crucial for proficiency.
Furthermore, a strong DAU base positively influences Duolingo's growth, user retention, and even the development of new features and content
Paid subscribers hold a pivotal role in Duolingo's ecosystem, serving as a driving force behind both its sustainability and continued innovation. Their significance lies in their direct contribution to the platform's revenue generation.
The number of paid subscribers reached 5.2 million by the end of the 2023 second quarter, marking a significant 59% growth compared to the same quarter of the previous year.These subscriptions provide the essential financial resources that enable Duolingo to maintain and enhance its offerings, invest in research and development, and consistently elevate the user experience.
Furthermore, Paid Subscribers benefit the Duolingo community as a whole by facilitating the creation of high-quality content. This premium content enriches the overall learning experience for both paid and free users, raising the overall standard of education on the platform.
Duolingo's net income carries substantial importance as it reflects the financial health and sustainability of the platform. In the last quarter (Q2 2023), It had better behavior than the net loss of $15.0 million in the preceding year's quarter.
A positive net income indicates that Duolingo's revenue surpasses its expenses in 2023 , which is essential for the company's long-term viability and ability to continue providing accessible language education. This is also reflected in the company's cash flow, which increased to $37.2 million compared to the same quarter last year.
Moreover, a healthy net income strengthens Duolingo's capacity to invest in educational research, partnerships, and initiatives that benefit both free and paid users, thus ensuring that language education remains a central pillar of the platform's mission.
Note: From Duolingo Shareholder Letter Q2 2023
Duolingo's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) provides a clear view of the company's operational efficiency and financial performance.
Duolingo achieved its highest quarterly adjusted EBITDA which represents an impressive 16.5% margin. This figure also shows that the company is adjusting its annual target Adjusted EBITDA margin range to 14-15% for the year.
EBITDA allows Duolingo to assess its ability to generate profits from its primary business activities, excluding factors like interest and taxes. This financial metric is crucial for investors, stakeholders, and the company itself, as it helps evaluate the platform's profitability, scalability, and overall financial health.
The last study of the most spoken languages on Duolingo shows which are the trends in terms of the most studied languages.
By offering courses in these widely spoken languages, Duolingo not only addresses the immediate needs and interests of a significant portion of its user community but also enhances its global reach and accessibility
This are the most studied languages in Duolingo:
| No. | Languages |
| 1 | English |
| 2 | Spanish |
| 3 | French |
| 4 | German |
| 5 | Japanese |
| 6 | Italian |
| 7 | Korean |
| 8 | Portuguese |
| 9 | Chinesse |
| 10 | Hindi |
Duolingo's learners continue to be interested in learning English, becoming the anglo language in the most popular course of the platform. Nevertheless the interest of worldwide learners for romantic languages such as Spanish, France and Italian as well as Assian languages is on demand.
On average, users spend approximately 30 minutes per day on the platform studying those languages. Furthermore, Duolingo boasts an impressive 300,000 daily course completions, showcasing its effectiveness in helping learners reach their language goals.
In conclusion, Duolingo's success story is marked by its innovative approach to language education and its remarkable impact on learners worldwide. With over 500 million downloads and more than 74 million monthly active users Duolingo has become a leading force in the language-learning landscape.
Its freemium business model, which includes Duolingo Plus subscriptions and advertising, has enabled it to sustainably provide free language education while generating the revenue needed to drive innovation and maintain high-quality content. The platform's extensive language offerings, diverse user base, and commitment to accessibility and inclusivity have cemented its position as a key player in the field of online education.
Duolingo's continued growth and influence exemplify its dedication to making language learning enjoyable, effective, and accessible to learners of all backgrounds.
FAQ
What is Duolingo's business model, and how does it work?
Duolingo operates on a freemium business model. The core language learning content and features are available for free to users. Duolingo generates revenue through two primary streams: Duolingo Plus subscriptions and advertising. Duolingo Plus offers enhanced features, such as ad-free learning, offline access, and progress quizzes, for a monthly fee. Advertising, displayed to free users, provides an additional source of income for the company.
How many users does Duolingo have, and what is its reach?
Duolingo had over 500 million users globally. The platform boasted more than 74 million monthly active users. These statistics showcase the platform's widespread appeal and reach, with users from diverse linguistic backgrounds and regions.
What are the key metrics Duolingo uses to measure success?
Duolingo uses several key metrics to evaluate its success. These include Monthly Active Users (MAU), which assesses user engagement, and Paid Subscribers, which measure the number of users opting for Duolingo Plus subscriptions. Additionally, language course completion rates, user retention, and the growth of Duolingo for Schools adoption are essential metrics to assess the platform's effectiveness and impact.
How many language courses does Duolingo offer?
Duolingo offers courses in over 40 languages, ranging from widely spoken languages like Spanish and French to less commonly taught ones like Irish and Swahili. This extensive language selection promotes linguistic diversity and allows users to explore a broad range of languages based on their interests and goals.
What is Duolingo's strategy for staying innovative and competitive in the language-learning market?
Duolingo prioritizes innovation by regularly updating its courses, introducing new features, and collaborating with experts in the field of language education. The company also actively seeks user feedback to refine its offerings. Duolingo's commitment to making language learning accessible and enjoyable remains central to its strategy for staying competitive in the language education market.
Sources
Duolingo Shareholder letter Q2 2023
Duolingo Shareholder letter Q4 2022
Duolingo Press Release Q4 2021
Special report: 2 major changes in the top 10 languages to study
Duolingo enters 'major leagues' with $6.5 bln valuation in strong debut
