1844 ET - Investors seem to find Duolingo's significant investments toward AI and automation risky at this time. The language-learning app is growing "pretty fast in all of its markets," but the market doesn't seem to embrace the effects that this push in expenses will have on its margins. Duolingo, which also expects its revenue growth to step down throughout the year, projects a hit of roughly 300 basis points to margins in the 1H, followed by an improvement in the 2H as it works to improve AI costs. "While this means a more moderate pace of profit growth compared to the exceptional levels of the past two years, we're still delivering margin expansion just with an eye on building something even bigger," CEO Luis von Ahn says on a call with analysts. Duolingo shares fall 8% in after-hours. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
February 27, 2025 18:44 ET (23:44 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。