PITTSBURGH—Matthew Skaruppa, the Chief Financial Officer of Duolingo , Inc. (NASDAQ:DUOL), has recently sold a portion of his holdings in the language-learning platform. According to a Form 4 filing with the Securities and Exchange Commission, Skaruppa sold a total of 3,591 shares of Duolingo's Class A Common Stock on November 18, 2024. The shares were sold at prices ranging from $307.32 to $312.01 per share, amounting to a total transaction value of approximately $1.1 million.
Following these transactions, Skaruppa holds 81,980 shares of the company. The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows insiders to sell a predetermined number of shares at a set time to avoid concerns about insider trading.
This move comes as Duolingo continues to expand its offerings and user base, maintaining its position as a leader in the digital language education market. Investors will be watching closely to see how these insider transactions might reflect on the company's future performance.
In other recent news, Duolingo Inc. reported a significant increase in daily active users and raised its full-year guidance during its recent earnings call. The company's CEO, Luis von Ahn, and CFO, Matt Skaruppa, highlighted a 54% year-over-year growth in daily active users, with an anticipated bookings growth of 36% and revenue growth of 40%. Moreover, Duolingo's AI-powered video call feature, part of the Duolingo Max subscription tier, has been introduced to about half of its users, with further expansion planned.
The company has also raised its adjusted EBITDA margin guidance to 25.5% for the year. Duolingo's management expressed confidence in sustaining high growth rates and revealed plans to invest in R&D. The company aims to increase Max subscription availability, targeting 60-70% of daily active users by year-end.
In addition to these developments, Duolingo is focusing on expanding English learning content and functionality, particularly for Android users. Despite challenges with monetization among Android users and uncertainty around long-term subscription ratios, Duolingo remains optimistic about their market position and potential for continued expansion. Recent developments also include the addition of marketing managers in France and Korea, with plans for expansion into Italy and Turkey.
InvestingPro Insights
As Duolingo's CFO Matthew Skaruppa sells a portion of his holdings, it's worth noting that the company's stock has been performing exceptionally well. According to InvestingPro data, Duolingo has seen a strong return of 58.01% over the last three months and an impressive 81.4% over the last six months. This robust performance has brought the stock price to 99.86% of its 52-week high, indicating strong investor confidence.
InvestingPro Tips reveal that Duolingo holds more cash than debt on its balance sheet, which is a positive sign for the company's financial health. This aligns with the company's strong market position and growth trajectory mentioned in the article. Additionally, analysts anticipate sales growth in the current year, with revenue growing by 42.47% in the last twelve months as of Q3 2024.
Despite the high valuation multiples, with a P/E ratio of 163.02, InvestingPro Tips suggest that Duolingo is trading at a low P/E ratio relative to its near-term earnings growth. This could indicate that the market believes in the company's potential for continued expansion and profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 19 additional tips for Duolingo, providing a deeper understanding of the company's financial position and market outlook.
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