Duolingo's stock jumps 10% after learning platform swings to surprise Q3 profit

Shares of Duolingo Inc. (DUOL) rallied more than 10% in the extended session Wednesday after the language-learning platform swung to an unexpected third-quarter profit and its revenue jumped 43%. Duolingo earned $2.8 million, or 6 cents a share, in the quarter, compared with a loss of $18.5 million, or 46 cents a share, in the year-ago period. Revenue rose 43% to $138 million, Duolingo said. Analysts polled by FactSet expected the company to report a loss of 7 cents a share on sales of $132 million. Duolingo said it had 83.1 million monthly active users, an increase of 47% from the prior-year quarter. The company last month announced a strategic shift toward becoming a multi-subject product, rather than just languages, and started offering math and music courses on its app. "We believe this offers great value to our users, and can unlock benefit to us over time as we can apply the things that make our language app fun, engaging, and effective to these new courses," Chief Executive and co-founder Luis von Ahn said in a statement.

-Claudia Assis

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11-08-23 1617ET

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