One of Gen Z’s favorite apps just had a very strong quarter
Duolingo had an amazing second quarter.
Gen Z’s favorite language-learning app is on a streak of its own.
Duolingo on Wednesday posted its fifth straight profitable quarter. It reported a net income of $24.4 million, a more than 500% increase from the same period last year. Daily active users, one of the company’s most important metrics, grew by 59%, while paid subscribers grew by 52%, Duolingo said in its second-quarter earnings report.
“We also achieved two milestones: surpassing 100 million monthly active users and reaching 8 million paying subscribers,” Luis von Ahn, the company’s CEO, said in an earnings call on Wednesday.
The company’s stock gained about 5.5% in after-hours trading.
A specific marketing approach
Duolingo’s user growth in the past year could be attributed to its marketing tactics.
The company is famous for its guilt-inducing app messages and emails asking users to continue using the app. Marketing experts have argued it’s the right approach for Gen Z users.
“They’re looking for something that comes across more like a person,” Brian Honigman, a marketing consultant based in Philadelphia, told B-17 last month. “Duolingo does a fantastic job of not coming across like many other brands.”
Many users perceive the app’s green owl mascot as authentic and consistent. Whether it’s on TV, in YouTube ads, or on TikTok, where Duolingo has over 12.5 million followers, the owl displays a smug and humorous personality.
The mascot and the Duolingo app have become cultural icons, making appearances in user-generated content and even Hollywood.
“Our signature ‘ding’ was featured in the ‘Barbie’ movie, providing an incredible brand boost, and in many ways that was indicative of our commanding presence in the zeitgeist last year,” Matt Skaruppa, Duolingo’s chief financial officer, said in the call.
The brand is also doubling down on country-specific marketing. Duolingo’s social-media accounts in India, Germany, and France feature content based on memes, news events, and trends, amassing hundreds of thousands of followers in each country.
But the app’s success on social media has not been enough to calm investors.
It beat analysts’ expectations when it reported fourth-quarter earnings in February, but shares slipped after it reported its first-quarter results, when it said it gained new users at the slowest rate since 2022.
Duolingo stock is down over 24% in the year to date.
