Duolingo’s Generative AI Boosts Revenue and Subscriber Growth

Duolingo, the language-learning app, is reaping the benefits of its investment in artificial intelligence (AI).

In the first quarter, the company saw a remarkable 54% surge in paid subscribers, reaching 7.4 million. Additionally, first-quarter revenue increased by 45% to $167.6 million.

Generative AI has played a pivotal role in this success. It has accelerated subscription growth and allowed for faster content creation.

Duolingo’s Finance Chief, Matt Skaruppa, noted that people are increasingly willing to pay more for language learning through Generative AI.

The company aims to enhance its AI-monetization efforts by expanding its family subscription plan and introducing the Duolingo Max plan. The latter, developed using OpenAI’s GPT-4 technology, currently caters to Spanish- and French-language learners in six countries.

Duolingo plans to add more languages, including English, in the future.

Generative AI has significantly expedited content development, reducing project timelines from five years to just three months. Despite its relatively small number of Max subscribers, Duolingo remains optimistic due to additional AI features beyond basic conversation.

To keep users engaged, the company focuses on smooth app invites and social features for its family plan. During the quarter, daily active users reached 31.4 million.

Duolingo recently raised its second-quarter revenue outlook to between $175 million and $177.5 million, outperforming analysts’ expectations.

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.