The Duolingo language platform increases the number of paid subscribers
The Internet platform for learning foreign languages Duolingo Inc. (DUOL) has developed a strategy to increase the number of paid subscribers. This is an important change users provide over 70% of revenue. Duolingo receives the primary income from the users of its application, but only a small part so far pays for access to foreign language learning services.
The rest of the clients are through advertising. Last fiscal year, Duolingo’s revenue grew by 55% year-on-year, to $294 million. The company’s net loss reached $60 million, which is slightly better than the expectations of Wall Street analysts. Overall, Duolingo has done a powerful job of increasing the number of subscribers in fiscal year 2021. By the end of the year, the number of monthly active users increased by 10% to over 40 million.
The number of daily active users increased by 18% year-on-year, to over 9.5 million. This is a slight slowdown compared to last year, but at the peak of the pandemic, people had more free time to learn foreign languages, so it is not surprising that the number of active students on the platform grew faster last year. It is worth noting the success of Duolingo in attracting paid users. Now the company has 2.5 million paid subscribers, which is 56% more than in 2020.
The management explained this positive change in marketing programs to attract students. In addition, the value of the Duolingo application is growing, which is why users will pay for it. During the year, 72% of Duolingo’s revenue came from subscription revenue. Because of the growth of the paid user base, Duolingo expects revenue to increase by 32% by the end of 2022.
