REVENUE GROWTH 💰Revenues doubled YoY to ~$162M in 2020 - 73% from subscription, 17% from ads and 10% from Duolingo English Test (DET). On track to double that again this year.

👨‍💻 ~40M MAUs of which 5% are paid users - an increase from just 1% in 2017 (they’re getting better at converting and have tons of room to grow)

💵70%+ gross profit, BUT 30% of their revenue goes to apple and google stores as fees. The stores are a big factor of their growth…but this is highway robbery lol.

Summary: The financials are strong and duolingo is close to profitability which is rare in today’s age. Plenty of room to continue growing.

USER ENGAGEMENT 📈DAU/MAU ratio grew from ~15% in 2016 to ~25% in 2021. 1M users have a 365 day streak. 💸 Make ~$95 per paid user per year and on avg. ~$5 per MAU per year. Focusing on growing that with new products like Duolingo ABC.

📚Learners complete 500M+ exercises everyday on the app making it the world’s largest language learning dataset 🚀 User LTV on the rise - Annual subscribers increased to 70% of total subscribers in 2020 v/s 47% in 2018.

Summary: Duolingo is a data company. They use gamification to create a sticky experience, with many PMs coming from companies like Zynga. Sticky users = huge opportunity to increase LTV with multiple products

GROWTH MODEL - learning flywheel: more users = more data = better experience - investment flywheel: more money = more R&D = better experience

Looking to expand their learner base into Asia and Latin America. 🚀 Revenues from Duolingo English Test grew from $1M to $15M YoY - the test is accepted by 2000+ universities globally! They can expand this to tons of other languages.

Summary: With 1.8B learning languages globally, Duolingo’s mobile first freemium model is a perfect vehicle to capture and monetize them. With its high frequency usage and design - there is a big opportunity here to turn into a learning super app.

If you liked this thread here’s another one you might find interesting. Will be a key factor for Duolingo’s growth strategy.