Duolingo Stock Set for Monday Earnings After Revenue Guidance Miss
Duolingo stock heads into Monday's after-hours earnings report after its last quarter delivered $282.9 million in revenue but missed full-year revenue and EBITDA guidance expectations. The company also reported 133.1 million users, up 14.1% from a year earlier.
Monday After Market Hours
Duolingo will report earnings on Monday after market hours, giving investors a fresh read on whether the company can follow a softer guidance update with another quarter of strong growth. The stock has gained 13.3% over the last month, outpacing the 11.1% average rise for consumer subscription shares.
Analysts expect revenue to increase 25.1% from a year earlier this quarter, after Duolingo posted 35% growth last quarter and 37.7% growth in the same quarter last year. Most analysts covering the company have reconfirmed their estimates over the last 30 days.
Duolingo Guidance Miss
The tension for investors is straightforward: Duolingo has a history of exceeding Wall Street's expectations, but last quarter's full-year revenue and EBITDA guidance missed analysts' expectations significantly. That left the current report as a test of whether the company can preserve user growth while restoring confidence in the full-year outlook.
Duolingo's last-quarter revenue of $282.9 million and user base of 133.1 million show a business still expanding, but the guidance reset remains the hard number that frames Monday's report. The company enters the release with an average analyst price target of $104.97, while its current share price stands at $112.61.
Roku And Coursera
The broader consumer subscription group has already seen mixed results from other companies reporting this quarter. Roku posted 22.4% year-on-year revenue growth and beat analysts' expectations by 3.6%, then traded up 6% after its results, while Coursera reported revenue up 9.1% and fell 11.6% afterward.
Duolingo's next reaction will depend on whether Monday's numbers match the stronger pattern or the weaker one. Investors get that answer after market hours, when the company shows whether its recent momentum is enough to offset the guidance miss that came before it.
