Duolingo (DUOL) Q2 FY2024 earnings: revenue $178 million, up 40.6% on the year

Duolingo, Inc. (DUOL) reported revenue of $178 million for Q2 FY2024, the quarter ended 30 June 2024, up 40.6% on the same quarter a year earlier. Net income was $24 million, up 553.7% on the year, and diluted earnings per share $0.51. The figures are the company's own, from the 10-Q it filed with the SEC on 8 August 2024.

Revenue$178 millionup 40.6%

Net income$24 millionup 553.7%

Diluted EPS$0.51

QuarterQ2 FY2024ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	178	168	n/a	n/a
Cost of revenue	47.3	45.2	n/a	n/a
Gross profit	131	122	n/a	n/a
Gross margin	73.4%	73.0%	n/a
Research and development	55.1	50.9	n/a	n/a
Operating income	18.7	16.4	n/a	n/a
Operating margin	10.5%	9.8%	n/a
Pre-tax income	28.7	25.9	n/a	n/a
Income tax	4.4	-1.1	n/a	n/a
Effective tax rate	15.2%	-4.3%	n/a
Net income	24.4	27.0	n/a	n/a
Net margin	13.7%	16.1%	n/a
Diluted EPS	$0.51	$0.57	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	62.4	83.5	n/a	n/a
Capital expenditure	5.6	1.4	n/a	n/a
Free cash flow	56.8	82.1	n/a	n/a
Free cash flow margin	31.9%	49.0%	n/a
Cash from investing	-8.7	-5.0	n/a	n/a
Cash from financing	4.8	3.6	n/a	n/a
Depreciation and amortisation	2.2	2.1	n/a	n/a
Share-based compensation	26.7	25.0	n/a	n/a
Diluted shares, weighted	48m	47m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	767	711	n/a	n/a
Operating lease liabilities	54.8	53.9	n/a	n/a
Other liabilities	318	304	n/a	n/a
Total liabilities and equity	1,139	1,069	n/a	n/a
Fixed assets	18.3	13.2	n/a	n/a
Goodwill	4.0	4.0	n/a	n/a
Intangible assets	20.6	18.6	n/a	n/a
Cash and equivalents	888	830	n/a	n/a
Receivables	77.7	76.4	n/a	n/a
Other assets	131	127	n/a	n/a
Total assets	1,139	1,069	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	138	151	168	178	193	210	231	252	272	283	292	298
Cost of revenue	36.3	40.6	45.2	47.3	52.2	58.9	66.6	69.7	74.8	77.0	78.9	81.7
Gross profit	101	110	122	131	140	151	164	183	197	206	213	217
Gross margin	74%	73%	73%	73%	73%	72%	71%	72%	72%	73%	73%	73%
R&D	50.3	50.3	50.9	55.1	62.9	66.4	70.4	73.7	82.7	79.6	83.0	92.2
Operating income	-4.7	4.8	16.4	18.7	13.6	13.9	23.6	33.4	35.2	43.5	44.5	33.9
Operating margin	-3%	3%	10%	10%	7%	7%	10%	13%	13%	15%	15%	11%
Pre-tax income	2.9	15.1	25.9	28.7	25.4	22.4	35.0	46.5	46.4	54.5	55.6	45.4
Tax rate	4%	20%	-4%	15%	8%	38%	-0%	4%	-529%	23%	22%	27%
Net income	2.8	12.1	27.0	24.4	23.4	13.9	35.1	44.8	292	42.0	43.5	33.2
Net margin	2%	8%	16%	14%	12%	7%	15%	18%	108%	15%	15%	11%
Diluted EPS	$0.06	$0.26	$0.57	$0.51	$0.49	$0.31	$0.72	$0.91	$5.95	$0.99	$0.89	$0.66
Operating cash flow	37.6	49.2	83.5	62.4	56.3	83.3	106	90.7	84.2	107	151	88.3
Capital expenditure	0.8	0.9	1.4	5.6	3.2	2.0	1.3	1.2	4.9	10.7	0.1	6.9
Free cash flow	36.9	48.3	82.1	56.8	53.1	81.4	104	89.5	79.4	96.6	151	81.4
Buybacks	n/a	n/a	n/a	n/a	n/a	n/a	0.0	0.0	n/a	n/a	24.3	45.3
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2024, filed 8 August 2024, accession 0001562088-24-000207: the filing on EDGAR. All of Duolingo, Inc.'s filings: EDGAR company page.

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