Shares of Duolingo (NASDAQ: DUOL) fell about 13% on Friday, Nov. 11 after the company posted a third-quarter earnings report that most companies can only dream of. In a nutshell, the company's language-learning application is more popular than ever and converting millions of free users into paid subscribers. 

In these troubling economic times, investors want to see profits and that was something that Duolingo couldn't deliver. While I generally prefer buying businesses that are already making money to those that report losses, Duolingo's latest report showed several signals that suggest its bottom line can soon explode into positive territory. Here are three of the most important ones.

During the third quarter, Duolingo reported a net loss of $18.4 million on a GAAP basis. If we adjust for non-recurring charges the company actually earned $2.1 million before interest, taxes, depreciation, and amortization (EBITDA). 

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Source Fool.com