Duolingo, Inc. (NASDAQ: DUOL), the leading mobile language learning platform, reported impressive financial results for the third quarter of 2024, surpassing expectations across key metrics. The stellar performance prompted the company to raise its full-year guidance, reflecting optimism in its growth trajectory.

In the quarter ended September 30, 2024, Duolingo witnessed remarkable user growth, with Daily Active Users (DAUs) surging 54% year-over-year to 37.2 million, and Monthly Active Users (MAUs) climbing 36% to 113.1 million. This robust user engagement translated into strong financial performance, with total bookings soaring 38% to $211.5 million, driven by a 45% increase in subscription bookings to $176.3 million.

Duolingo's revenue for the quarter rose 40% year-over-year to $192.6 million, exceeding analyst estimates. The company's profitability also improved significantly, with net income of $23.4 million, adjusted EBITDA of $47.5 million (representing a 24.7% margin), and free cash flow of $52.7 million.

Notably, Duolingo's paid subscriber base grew by an impressive 47% from the prior year, reaching 8.6 million at the end of the quarter. The company's recently introduced AI-powered Video Call feature, part of its premium Duolingo Max offering, contributed to driving subscriber adoption and enhancing conversational practice opportunities.

Encouraged by the strong performance, Duolingo raised its full-year 2024 guidance. The company now projects total bookings of $843.5 million to $846.5 million, up from its previous range of $820.5 million to $827.5 million. Additionally, Duolingo raised its revenue guidance to $741.0 million to $744.0 million, compared to the previous range of $731.3 million to $738.3 million.