Here’s a bit more in-depth… 
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I wondered what exactly made the stock jump 10%. A quick Google search and a translator tool, because English is my weakness despite my active gaming. Swedish and even Italian are better for me 
Duolingo Launches AI-Powered Video Call for Android
PITTSBURGH, January 16, 2025 (GLOBE NEWSWIRE) – Duolingo (NASDAQ: DUOL), the world’s leading mobile learning platform, today announces the expansion of Video Call to Android devices. The innovative AI conversation partner for language learning is now also available in five additional languages. Video Call is Duolingo’s most advanced offering to prepare learners for real-life conversations.
With the AI-powered tool, Duolingo Max subscribers can engage in spontaneous, realistic conversations with Lily, one of Duolingo’s most beloved characters. Designed to simulate natural dialogue, the feature offers a personalized, interactive experience tailored to your skill level. Speaking with the AI partner helps learners feel comfortable practicing their speaking skills in a safe environment.
Full story: Yahoo ist Teil der Yahoo-Markenfamilie.
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Here’s a concise overview of the company, with an emphasis on numbers. Nothing too special, of course. 
https://x.com/towardsfinance/status/1882180201079312517
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I have been studying French for over 700 days; I started directly with the Super version because I can’t stand watching those ads. I still need to buy a grammar book to support my learning, verb conjugations are difficult. Video conversations with Lily are not worth the extra cost in my opinion.
I have always tried to use the product/service before investing, to get firsthand experience of its value. And yes, the stock seems interesting, although expensive. Perhaps I could deduct the monthly fee in taxation as an acquisition cost for capital income?
I have also won my own Diamond League; according to an estimate by a member of the Reddit r/duolingo group, there would be 7000 concurrent ones.
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The tweet praises Duolingo’s ability to generate free cash flow predictably. The tweeter implies that the company’s business generates cash flow steadily and reliably.
Will this continue in the future, or could one think this way, or what are the biggest obstacles?
https://x.com/Tech_Investor20/status/1888322741708705801
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Duolingo did quite well; revenue grew significantly and bookings rose even faster. Earnings before interest, taxes, depreciation, and amortization grew by almost half, and free cash flow improved considerably. The number of daily active users increased by over half compared to a year ago.
For the current year, the company expects stable growth, although revenue and booking forecasts are in line with expectations. The number of paying subscribers has grown strongly, and the increase in user numbers supports earnings development. Most of the revenue comes from subscriptions, but other revenues, such as advertisements and testing services, are also growing.
According to the CEO, the strategy is working, and in the future, more will be invested in artificial intelligence and new features, such as video calls, to develop the learning experience, etc.
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The market leader’s growth is amazing! It’s nice to be an owner and an active user. I just feel like selling it because of that one orange man.
Duolingo’s brand recognition is truly amazing. Almost anyone you ask about the app, or if I tell them I’m playing it, a lot of people play it themselves, or have at least tried it. So the brand is indeed familiar, a bit like Coca-Cola, Nike, etc. Not quite, but close. If I had to list the names of Duolingo’s competitors, I can’t think of a single one.
Interesting to see tomorrow’s stock price.
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Here’s more from the shareholder letter:
CEO’s words:
Closing remarks
2024 was an extraordinary year for Duolingo. People often ask me, “What’s the secret behind Duolingo’s success?” The truth is, there’s no secret—just our mission and a process. We call the process “The Green Machine.” It’s our approach to experimentation, and it’s the engine behind everything we do, from product development to viral marketing. To see how we operate in more detail, I welcome you all to read the Duolingo Handbook, which we just published a few weeks ago. I’m incredibly excited for what lies ahead. Each Monday, I share a message with the entire company. In my first note this January, I told the team that I believe 2025 will be our best year yet. Thank you for being a part of our journey to make learning accessible, effective, and delightful for everyone. Until next time, we’ll continue to make it fun.
Luis von Ahn
CEO and Co-Founder
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I am not an expert on this matter, but somehow this line in the cash flow statement raises my doubts.
The number of shares has grown quite rapidly over time.
I interpret this to mean that a rather large portion of the cash flow goes to management compensation. Thus, the dilution risk is high.
Someone more knowledgeable might comment if this is the case and if it’s a good or bad thing.
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Growth in daily and monthly user numbers seems to be slowing down. However, it is still at a high absolute level, so in the long run, growth should catch up with valuations.
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Nowadays, Duolingo is not just growing, but profitable.
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Interview with the CEO, recommended listening if Duolingo interests you as an investment. This covers the CEO’s background, Duolingo’s journey from its beginnings to today, and all sorts of other interesting things.
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Citron Research on X shares truths about Duolingo. It is not in thread format.
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Duolingo’s quarter went well. The company significantly increased its revenue from last year and improved its profit at the same time. User numbers grew significantly for both daily and monthly users. The number of paid subscriptions also rose, and subscription revenues grew rapidly.
CEO Luis von Ahn highlighted the new user record and the surpassing of 10 million paying subscribers.
Looking to the future, the company believes that Duolingo Max and AI-powered innovations will particularly accelerate growth and development.
https://x.com/StockMarketNerd/status/1918038560545866182
Official Materials
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Surprisingly good quarterly result. Based on the previous earnings call and von Ahn’s comments, I expected the earnings level and FCF to take a hit during the first half of the year, as testing and optimizing video features will take time and the margin level is not close to long-term targets.
I haven’t listened to the latest earnings call yet, but perhaps there has been an update on this.
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Duolingo has been around for quite a while, so it’s quite surprising to see such strong user growth in a short period now. What could explain that?
Spotted from the Multipliers tweet thread, i.e., Duolingo’s part.
The app is expanding from languages to mathematics and music, and the share of paying users is growing rapidly. Gamification, strong user habit, and AI-powered content keep users engaged.
The company is effectively growing revenue with new services without high customer acquisition costs. Digital content is scalable and margins are high, which supports growth and profitability.
More on the matter in the tweet below.
https://x.com/MMoney642/status/1918759783328579940
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Below is a tweet describing how Duolingo’s CEO praised a new chess module, stating that it was designed by two people who couldn’t program or play chess.
This sparked criticism and brought to mind Peloton’s overhyping, with the CEO’s claim being cited as an example of artificial stock overvaluation.
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Duolingo’s user numbers have grown at a rapid pace.
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Duolingo’s app is mostly great. However, it has some quite significant problems, and Duolingo seems to refuse to listen to its customer base because the leadership has blinders on.
I used Duolingo a couple of years ago and got hooked. Until I got totally fed up with the fact that new words come at a good pace in the lessons, but the separate “word practice” feature only repeats exactly the same words.
Now I tried Duolingo again. I got hooked for 2 weeks. I was almost buying a share – a brilliant app! …But as new words started to accumulate, the same infuriating problem is still present – even though my library already has about 1000 Russian words, the word exercises only repeat the same set of 30 words, consisting of words that are among the very first ones I learned. I cannot review the words I would actually need in lessons and where I actually have challenges. This eventually causes frustration with the lesson content as well, and cancellation of the subscription.
If you google the matter, customers have been complaining about this constantly on forums and to customer service for 10 years already, and the problem is present for all languages. Duolingo’s customer service’s standard response is an arrogant statement describing that repetition is intentional and planned.
It is true that Duolingo’s learning is based on repetition and it is needed, when the point is to teach a language without grammar. However, this is not a reasonable basis for maintaining a completely counterproductive practice that does not support learning. The entire word practice game engine seems to lack a sensible algorithm for selecting the most important or newest words, or there is an algorithm but it is illogical. The internet is so full of angry customers who have canceled their subscriptions because of this that Duolingo would probably have made millions if it had just implemented one optional rand()-loop, or given customers the opportunity to practice the N newest words from their library. But the choice not to listen to customers seems to be ideological.
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