by Akash Shriram
May 4 (Reuters) – Duolingo posted strong first-quarter results but hinted at a more measured growth trajectory ahead, as the language-learning app prioritizes user engagement and product improvements over near-term monetization.
Shares of the Pittsburgh-based company fell 11% in volatile extended trading.
At the heart of Duolingo’s strategy is a shift toward prioritizing user experience and long-term retention over near-term monetization, as it invests in product quality and engagement to build a larger base of paying customers.
“We are making a long-term bet and the returns on the investments we are making will last through 2027 and beyond,” CFO Gillian Munson told Reuters.
The company said it expects bookings to grow about 10.5% for the year, with a slower pace in the second quarter before accelerating later in 2026. Duolingo aims to reach 100 million daily active users by 2028.
Investors have increasingly focused on whether Duolingo can maintain the strong conversion of free users into paying customers under its freemium model, especially as booking growth has slowed.
The language-learning platform reported revenue of $292.0 million in the first quarter, above analysts’ estimates of $288.5 million, as subscription growth remained the primary driver of its business, according to data compiled by LSEG.
Daily active users grew 21% to 56.5 million, while paid subscribers grew 21% to 12.5 million, pointing to continued engagement across its global user base.
Total bookings rose 14% to $308.5 million in the first quarter, beating estimates of $301.7 million, according to data compiled by Visible Alpha.
Duolingo largely maintained its full-year revenue expectations, forecasting revenue of about $1.21 billion, in line with analysts’ expectations. For the second quarter, the company projected revenue of $295.5 million, slightly above estimates of $294 million.
The company is investing heavily in product improvements, especially in speaking features and AI-powered tools such as its premium Duolingo Max tier. It said margins could be lower at the end of the year due to increased use of AI features.
(Reporting by Akash Sriram in Bengaluru; Editing by Taseem Zahid)
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