Duolingo beats Q1 estimates but signals slower growth as it prioritizes engagement

Duolingo reported first-quarter results on May 4 that beat analyst expectations for revenue and total bookings, but the language-learning company said growth could moderate as it prioritizes user engagement and long-term retention over near-term monetization.

Shares fell 11% in extended trading.

The Pittsburgh-based company said it is investing in product improvements, including speaking features and AI-powered tools such as its premium Duolingo Max tier. Chief Financial Officer Gillian Munson said the company is making “long-term bets,” with returns expected in 2027 and beyond.

Duolingo has set a goal of reaching 100 million daily active users by 2028.

Key quarterly metrics Duolingo reported the following for the first quarter:

• Revenue: $292.0 million (analysts’ estimate: $288.5 million)

• Daily active users: up 21% to 56.5 million

• Paid subscribers: up 21% to 12.5 million

• Total bookings: $308.5 million (estimate: $301.7 million)

Outlook and margins Duolingo maintained its full-year revenue forecast of about $1.21 billion. For the second quarter, it forecast revenue of about $295.5 million.

The company said margins could moderate later in the year as usage of AI features increases.