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PITTSBURGH - Duolingo Inc. (NASDAQ: NASDAQ:DUOL), the company behind the widely-used language learning app, has expanded its AI-driven conversation feature, Video Call, to Android users and added support for five new languages. This feature, which was previously available on iOS, enables Duolingo Max subscribers to practice speaking with an AI character named Lily, designed to aid language proficiency by simulating natural conversations. The company's innovative approach has driven impressive financial results, with revenue growing 42.47% in the last twelve months and maintaining strong gross profit margins of 73.13%.
The Video Call feature aims to replicate real-world interactions, offering a personalized experience that adapts to the user's skill level. It is part of Duolingo's effort to provide advanced learning tools that were traditionally accessible only through travel or personal tutoring. "This is our most advanced conversation practice feature ever," said Luis von Ahn, co-founder and CEO of Duolingo. According to InvestingPro analysis, while the company is currently trading above its Fair Value, it maintains excellent financial health with strong growth prospects. InvestingPro subscribers have access to 16 additional investment tips for Duolingo.
As of today, Android users can use Video Call to learn English, Spanish, French, German, Portuguese, and Italian. Support for Japanese and Korean is slated to be added soon. The iOS version already includes these languages and will soon receive additional updates, such as expressive animations to make the AI partner more lifelike and transcripts of the calls for post-conversation review. Moreover, the AI character Lily will initiate calls to users to encourage consistent language practice.
Duolingo's approach to language education has positioned it as a leader in the mobile learning space, with its app being the top-grossing app in the Education category on both Google (NASDAQ:GOOGL) Play and the Apple (NASDAQ:AAPL) App Store. The company's commitment to leveraging technology for educational purposes is reflected in its continuous investment in features like Video Call. With a market capitalization of $14.66 billion and robust financial metrics, Duolingo demonstrates strong market performance, as detailed in the comprehensive Pro Research Report available on InvestingPro.
This expansion of the Video Call feature is based on a press release statement from Duolingo.
In other recent news, Duolingo Inc. has been the subject of multiple analyst reviews and has reported strong growth in its latest earnings call. Needham maintained a Buy rating on Duolingo and increased the price target to $385, citing the company's new growth phase driven by GenAI-powered features aimed at attracting new English learners. Meanwhile, BofA Securities downgraded Duolingo from "Buy" to "Neutral," despite acknowledging the company's high-quality status and consistent growth trajectory. The downgrade was due to perceived less upside potential as shares are currently trading at peak valuation.
In an earnings call, Duolingo reported a significant increase in daily active users (DAUs), a 54% year-over-year growth, and raised its full-year guidance. The company anticipates bookings growth of 36% and revenue growth of 40%. Duolingo's new AI-powered video call feature, part of the Duolingo Max subscription tier, has reached about 50% of its users, with plans for further expansion. The company also raised its adjusted EBITDA margin guidance to 25.5% for the year.
These are recent developments that highlight Duolingo's robust growth prospects and the potential impact of its innovative GenAI technology. The company's strategic focus on enhancing content for English learners and expanding its subscription offerings is driving user growth and financial performance.
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