Why Duolingo Stock Jumped Higher Today
Shares of mobile-app education company Duolingo (NASDAQ: DUOL) jumped higher on Wednesday after the company reported financial results for the fourth quarter of 2022. The company is still growing at an impressive rate, delighting investors. And that's why Duolingo stock was up almost 17% as of 10:20 a.m. ET.
Duolingo primarily generates revenue from its app for language learning, with 74% of full-year 2022 revenue coming from paying subscribers. And impressively, the company ended the year with 4.2 million paying subscribers, a 67% increase from 2021. For perspective, this is an acceleration from the 56% growth in paying subscribers it enjoyed in 2021.
With its rapidly growing user base, Duolingo grew full-year 2022 revenue by 47% to $370 million. And the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) swung from a $1.1 million loss in 2021 to a $15.5 million gain in 2022.
Source Fool.com
