The Thing About Duolingo


DUOL has a language learning platform that offer to teach you to speak 40 different language; which… is a lot. And while I still find English challenging - I did, in fact, study both Latin and Spanish back in the day. Truth be told - neither much ttok and all I remember of either is a few really swell phrases like: Donde es La Biblioteca? And the always good to know after a night of tequila: Donde es el Bano? As for the Latin - well… I do fairly well at converting the Super Bowl symbols into actual numbers; however, nobody I know speaks latin, not even Catholic priests now days, and it sort of vanished from non-use.

Note: I did have a fraternity brother once who talked me into signing up for Russian which he claimed he could get us through; although, without telling me, he dropped the class just before the drop period ended. It did not end well.

So what about Duolingo?

Current Price: $150.06
About 4.6% Below its High
Market Cap: $6.1B (Give or take)
1 Month Momentum: + 10%
YTD Momentum: + 111.5%
EV/Sales (fwd): 10.85

Since we are at heart Growth Investors the only question to answer is this: Does DUOL have the goods? Does it walk the walk - so to speak. And if it does walk the walk and have the goods then what is the TAM - its competitive position, its path to profitability, etc…etc…etc.

Well…you won’t find those answers here. Just some easily researched data that might come in handy - especially if you ever want to learn Nepalese for when you challenge Everest or K-2 (and when you do for goodness sake - man up and leave the oxygen to the amateurs) or perhaps French so you can impress your wife on a romantic date - or something like that.

DUOl last reported FQ1 on May 9th with some nice stats:

  • Revenue Growth of 42.4% Y/Y which totally almost, sorta, trashed/eeked by and outgrew its last report’s 42.2% Revenue Growth.

  • Paid Subscribers totaled 4.8 million at quarter end, an increase of 63% from the prior year quarter;

  • Monthly active users (MAUs) grew 47% to 72.6 million from the prior year quarter and Daily active users (DAUs) grew 62% to 20.3 million from the prior year quarter.

  • Net loss totaled $2.6 million, compared to a net loss of $12.2 million in the prior year quarter

Here is the Press Release:

Here is the After Report Headline:

AND…Best of all - Their Guidance (at the high end) produces Revenue Growth of +41% BEFORE their typical Revenue Beat of 2-4M. So - rock steady there.

Fan Reaction: The stock popped from 134.30 the day of the report to $147.70 - a nice quick gain of 10% where is has lingered around till this day. Not too shabby.

A couple of Scouting Reports:

Duolingo (DUOL) Stock: Wait For A Better Buying Opportunity | Seeking Alpha

This one from the Fool or someone at the Fool who wants you to buy DUOL hand over fist. So should you:

You’ll just have to figure that out for yourself. As for me, its a hard pass just now, not because it might not be a great investment; but rather, largely and primarily due to dysfunctional and malingering laziness as well as new fangled language technology.

The thing about learning a language is that you have to apply memory and study - skills which I somehow lapsed out of a few years back. Now the fact that they have some AI going for them and almost 5 million subscribers (up 63% Y/Y) is really swell and speaks to further upside from here; however, given what I am almost absolutely sure that I might know - is that there are potentially better candidates laying about the market just now and that might probably be a better fit for a concentrated portfolio.

Last Note: Don’t take my word for it - go look at it yourself: the good Lord knows I’ve been wrong before and fairly frequently if I do say so myself.

All the Best,
BDH Investing.


Hi Champ,

Agree with that…May be a winner, but hard pass for sure…Why??? it is not yet profitable, and it is not a quintessential stock…if recession strikes, not sure why its product would be something I need to spend money on ( Why the hell I did not think like this for UPST in 2022 is beyond me )…and most importantly, you have proven profitable winners who are blazing away…So, why chase yet another hottish stock,


In vino veritus

Only latin I know.

Red please, cheapest you got.



Sember ubi sub ubi is some wonky Latin my daughter taught me.
(always wear underwear)


Thanks TGdane:

Finally - something entirely critical, informative and worthwhile produced right here on this board.

All the Best,
BDH Investing


How would one say that in Latin?

I´m laughing with tears!