Jake Conley · Breaking Business News Reporter
Updated 2 min read
In This Article:
Duolingo (DUOL) stock endured wild swings on Thursday. The company’s second quarter earnings results sent shares up more than 30% before a big chunk of those gains were wiped out after OpenAI (OPAI.PVT) debuted its latest GPT-5 model.
In premarket trading on Friday, shares climbed more than 3% after closing 13% higher the day before.
Late Wednesday, the company disclosed in its second quarter report that the learning app reported daily active users rose 40% year over year to 47.7 million, though this marked its weakest rate of expansion since 2022, according to Bloomberg. Monthly active users were up 24% to 128.3 million, while paid subscribers grew by 37% year over year.
Revenue grew 41% year over year to $252.3 million, while total bookings grew by an identical 41% to $268 million. The company reported earnings per share of $0.91, up from $0.51 a year ago.
Duolingo also raised its full-year revenue outlook to $1.01 billion-$1.019 billion, up from a range of $987 million-$996 million and beating the consensus estimate of $996.5 million.
“We exceeded our own high expectations for bookings and revenue this quarter, and did it while expanding profitability,” CEO and co-founder Luis von Ahn said in a press release.
The CEO noted in his letter to shareholders released alongside the earnings that some of the company’s growth could be attributed to “lower-than-expected AI costs and strength in our ads business.” Von Ahn also emphasized the app’s chess course offering.
After the release, UBS analysts raised the bank’s price target to $500. The stock was trading around $400 Thursday afternoon.
Thursday’s jolt in the stock came during OpenAI’s demo that unveiled its latest model, GPT-5. The presentation showed a simulation of GPT-5 building a custom web app in just three minutes that taught its user French — Duolingo’s core functionality as a language learning tool.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
Read the latest financial and business news from Yahoo Finance
