Duolingo works under the "freemium" model, providing a set of basic features for free to all users, with additional features available through AI-powered Super and Max subscription packages.
Users with the Max package can practice chatting via video calls with chatbots, as well as have the right to analyze errors and feedback.
After the implementation in stages, Duolingo's AI (artificial intelligence) features have become available to the majority of users, boosting revenue growth.
Sharing with Reuters, Duolingo's CFO Matt Skaruppa said that in the first quarter of 2025, they benefited from the fact that Max and family packages attracted more users thanks to social media and strong promotional programs.
According to data compiled by the London Stock Exchange (LSEG), Duolingo expects revenue in the second quarter of this year to reach between $238.5 million and $241.5 million, much higher than analysts' estimate of $233.8 million.
The company expects revenue in 2025 to range from $987 million to $996 million, compared to analysts' estimates of $977.2 million. Previously, the company forecasted revenue for the year from 962.5 million USD to 978.5 million USD.
This week, Duolingo announced the launch of 148 new language courses, significantly expanding access to popular languages such as Japanese and Korean.
The company said it has used generative AI to develop content quickly, allowing the creation of 148 new courses in less than a year. It took them 12 years to create their first 100 courses.
Duolingo is applying a "AI is a top priority" strategy, replacing many contract employees with AI to rationalize its operations.
They also forecast core profits this year to fall between $271.4 million and $283.9 million, as they use tools to make their AI models more efficient. This figure is much higher than their previous forecast, from 259.9 million USD to 274 million USD.
Also according to Reuters, Duolingo's revenue from January to March 2025 is 230.7 million USD, much higher than analysts' estimate of 223 million USD.
