Duolingo files to go public

Duolingo, the language-learning startup used by 500 million people around the world to learn Spanish, English, French and more, has officially filed its S-1 to go public. Co-founded by Luis von Ahn, the inventor of CAPTCHA and reCAPTCHA, Duolingo offers 95 courses in 40 different languages, from the world’s most spoken ones, such as Spanish, French and Italian, to endangered languages like Navajo, Hawaiian, and Scottish Gaelic.

Duolingo uses a freemium business model based on a premium subscription offering, advertising, and in-app purchases (IAP) to generate revenue. With approximately 40 million monthly active users, the company’s revenue grew from $70.8M in 2019 to $161.7 million in 2020, an increase of 129%. Duolingo also reported $55.4M in revenue during the first quarter of 2021, representing 97% growth compared to the same period the previous year.

However, net losses have also grown for Duolingo. In these last three months, the company had net losses of $13.5 million, a sharp increase compared to the same period last year, when it had net losses of $2.2 million. Even so, the company’s net margin improved in 2020, as its revenue more than doubled while its losses barely grew.

To date, Duolingo has raised $183.3 million in venture capital. Investors with significant stakes in the company include NewView Capital, Union Square Ventures, CapitalG, Kleiner Perkins and General Atlantic. Duolingo now plans to list on the NASDAQ stock exchange under the symbol “DUOL”.

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