Shares of Duolingo, Inc. (NASDAQ: DUOL) surged 14.52% in pre-market trading on Friday, following the language learning app provider's impressive first-quarter 2025 results and raised full-year guidance. The company demonstrated strong growth across key metrics, driven by the success of its AI-powered subscription tiers and expansion into new subject areas.

For the quarter ended March 31, Duolingo reported earnings of $0.72 per share, significantly beating the analyst consensus estimate of $0.51. Revenue for the quarter came in at $230.7 million, surpassing the expected $223 million and representing a 37.71% increase from the same period last year. The company also announced that it had surpassed 10 million paid subscribers and achieved a record number of daily active users (DAUs), with a 49% year-over-year increase.

Investors were particularly encouraged by Duolingo's raised guidance for the full year 2025. The company now expects revenue between $987 million and $996 million, up from its previous forecast of $962.5 million to $978.5 million. This new outlook surpasses the analyst consensus of $977.2 million. Additionally, Duolingo increased its adjusted EBITDA guidance to a range of $271.4 million to $283.9 million for the year. The strong performance and optimistic outlook have prompted several analysts to raise their price targets for Duolingo stock, with JP Morgan increasing its target to $500 from $360 and UBS raising its target to $500 from $400.