Duolingo Files Q2 2024 10-Q

TL;DR

Duolingo's Q2 2024 10-Q is in. Check financials.

AI Summary

Duolingo, Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter of 2024, detailing financial performance and operational updates. Key financial data and disclosures relevant to investors are included.

Why It Matters

This filing provides investors with the official financial results and operational details for Duolingo in the second quarter of 2024, crucial for understanding the company's performance and future outlook.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-06-30 — Period End Date (Indicates the end of the reporting quarter)
• 2024-08-08 — Filing Date (Date the 10-Q was officially submitted to the SEC)

Key Players & Entities

• Duolingo, Inc. (company) — Filer of the 10-Q
• 2024-06-30 (date) — End of the reporting period
• 2024-08-08 (date) — Filing date of the 10-Q
• 5900 Penn Ave, Second Floor, Pittsburgh, PA 15206 (address) — Duolingo's business and mailing address

FAQ

Key Financial Figures

• $0.0001 — which registered Class A common stock, $0.0001 per share DUOL The Nasdaq Stock Market

Filing Documents

• duol-20240630.htm (10-Q) — 1322KB
• q2fy24duolingo06-30x24ex311.htm (EX-31.1) — 17KB
• q2fy24duolingo06-30x24ex312.htm (EX-31.2) — 17KB
• q2fy24duolingo06-30x24ex321.htm (EX-32.1) — 10KB
• 0001562088-24-000207.txt ( ) — 6218KB
• duol-20240630.xsd (EX-101.SCH) — 45KB
• duol-20240630_cal.xml (EX-101.CAL) — 55KB
• duol-20240630_def.xml (EX-101.DEF) — 193KB
• duol-20240630_lab.xml (EX-101.LAB) — 582KB
• duol-20240630_pre.xml (EX-101.PRE) — 389KB
• duol-20240630_htm.xml (XML) — 742KB

Financial Information

Part I Financial Information 6

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 39

Other Information

Part II Other Information 40

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 40

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 83

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 83

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 83

Other Information

Item 5. Other Information 83

Exhibits

Item 6. Exhibits 85

Signatures

Signatures 86 1 Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including without limitation, statements regarding our business model and strategic plans, including the introduction of new brands or products, and our implementation thereof; statements regarding our expectations, beliefs, plans, objectives, prospects, assumptions, future events or expected performance, including our ability to compete in our industry; the sufficiency of our cash, cash equivalents and investments; and the plans and objectives of management for future operations and capital expenditures are forward-looking statements. Without limiting the generality of the foregoing, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "goal," "objective," "seeks," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are neither promises nor guarantees, but involve a number of known and unknown risks, uncertainties and assumptions that may cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to:

Financial Information

Part I Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) DUOLINGO, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value amounts) June 30, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 888,240 $ 747,610 Accounts receivable 77,722 88,975 Deferred cost of revenues 63,285 53,931 Prepaid expenses and other current assets 12,317 7,282 Total current assets 1,041,564 897,798 Operating lease right-of-use assets 49,760 19,103 Intangible assets, net 20,586 15,995 Property and equipment, net 18,343 11,792 Goodwill 4,050 4,050 Restricted cash 2,735 2,735 Deferred tax assets, net 835 766 Other assets 1,570 1,718 Total assets $ 1,139,443 $ 953,957 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Deferred revenues $ 291,477 $ 249,192 Accounts payable 3,405 2,447 Income tax payable 38 792 Accrued expenses and other current liabilities 22,804 24,931 Total current liabilities 317,724 277,362 Long-term obligation under operating leases 54,775 21,094 Total liabilities 372,499 298,456 Commitments and contingencies (Note 9) Stockholders' equity Class A common stock, $ 0.0001 par value; 2,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 37,377 and 36,311 issued and outstanding at June 30, 2024 and December 31, 2023, respectively Class B common stock, $ 0.0001 par value; 30,000 shares authorized as of June 30, 2024 and December 31, 2023; 6,123 and 6,215 issued and outstanding at June 30, 2024 and December 31, 2023, respectively 4 4 Additional paid-in capital 930,054 869,918 Accumulated deficit ( 163,114 ) ( 214,421 ) Total stockholders' equity 766,944 655,501 Total liabilities and stockholders' equity $ 1,139,443 $ 953,957 See accompanying notes to the Unaudited Condensed Consolidated Financial Statements. 6 DUOLINGO, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amounts in thousands, except