Duolingo Inc. just shattered earnings while having a beneficial social effect at the same time

CENTRAL, Hong Kong - June 8, 2022 - PRLog -- It's a good reminder of an essential lesson. Stock prices never tell the whole story. A stock that has dropped drastically in price does not necessarily reflect the real intrinsic value, but a company that outperforms expectations and has a reduced stock price can be a game changer for most portfolios over time. DUOL is a digital language-learning start up, they fall into the latter group, at least according to its first-quarter 2022 results, which indicated skyrocketing growth among other good surprises. Here are the specifics on why this stock is a buy following its recent results announcement.

According to DUOL, 1.8 billion individuals across the globe are learning a second language and the possibility to educate them digitally might be worth as much as $47 billion by 2025. With the highest-grossing mobile app in the education category on both the Apple App Store and Alphabet's Google Play Store, the firm is already leading the charge.

DUOL's monthly active users (MAU) increased by 23% year over year to 49.2 million in the first quarter of 2022 but the number of users who pay a subscription to unlock extra features is growing much faster.

6.8% of DUOL's MAU now pay to improve their educational experience, which is a new high. The reason being is that the pace at which existing users pay is rising faster than the rate at which DUOL adds new users, this could cause the company's revenue growth to accelerate rapidly in the future. Sales increased 47% to $81 million in the quarter, while bookings increased 55% to $102 million, all of which are new highs for the firm. Bookings are an important indicator to track since they might indicate income that DUOL expects to generate in the future.

Ability Corporate Advisory Limited [https://abilitycorporateadvisory.com] is an independent Firm established in 2009 and headquartered in Hong Kong. As a boutique Firm, we are free from conflicts of interest or biased advice that can arise from misaligned incentives or commission-based structures. We offer rational investment and asset management recommendations based on a thorough understanding and analysis of your individual financial circumstances, risk profile, priorities and goals.