Duolingo, Inc.

Technology
Computer Software: Prepackaged Software
www.duolingo.com

Earnings Score
Moat Score

Market Cap $15.58B
PE 180
Debt $NaN
Cash $857.14M
EV $NaN
FCF $240.28M

Earnings

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Sales & Net Margins

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Earnings	$86.78M
EBIT	$95.09M
ROE	11%
ROA	8%
FCF	$240.28M
Equity	$822.45M
Growth Stability	1
PE	179.52
PEG	107.32
PB	18.94
P/FCF	64.84
P/S	22.6
Price/Cash	0.06
Net Margins	14%
Gross Margins	73%
Op. Margins	14%
Earnings CAGR	2%
Sales Growth YoY	40%
Sales Growth QoQ	8%
Sales CAGR	44%
FCF CAGR	233%
Equity CAGR	16%
Earnings Stability	-0.79
Earnings Growth YoY	732%

Earnings Growth QoQ	-4%
Earnings CAGR 5Y	2%
Sales CAGR 5Y	44%
FCF CAGR 5Y	233%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	44%
Sales CAGR 3Y	44%
FCF CAGR 3Y	231%
Equity CAGR 3Y	19%
Market Cap	$15.58B
Revenue	$689.46M
Assets	$1.22B
Cash	$857.14M
Shares Outstanding	43.16M
Earnings Score	6%
Moat Score	89%
Working Capital	716.3M
Current Ratio	3.09
Gross Profit	$504.17M
Shares Growth 3y	6%
Equity Growth QoQ	7%
Equity Growth YoY	34%

Assets & ROA

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Stockholders Equity & ROE

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Duolingo Inc is a mobile learning platform to learn languages and the top-grossing app in the Education category on both Google Play and the Apple App Store. It has three predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test.

SEC Filings

Direct access to Duolingo, Inc. (DUOL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Duolingo, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Duolingo, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability -79%

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Duolingo, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Duolingo, Inc..

Years

Calculation mode

= $179T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$240M	$800M	$2.7B	$8.9B	$30B	$98B	$328B	$1.1T	$3.6T	$12T	$40T	$403T
DCF		$727M	$2.2B	$6.7B	$20B	$61B	$185B	$560B	$1.7T	$5.1T	$16T	$156T
Value	$179T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-10%	-24%	-16%	3%	14%
ROA	-	-9%	-8%	2%	8%
ROE	-	-12%	-11%	2%	11%

Good Net Margins (13.87%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-
Debt over Equity	-	-	-	-	-
Growth Stability	-	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	55%	47%	44%	44%
Earnings YoY growth	-	281%	-1%	-127%	2%
Equity YoY growth	-	-736%	6%	21%	16%
FCF YoY growth	-	-61%	761%	213%	233%