Duolingo, a language learning application and website, went public on Nasdaq on July 28 at an offering price of $102. Goldman Sachs, Allen & Company, Evercore ISI, and Barclays acted as lead underwriters for the IPO.
The company's stock opened at $141.40 on its first day. By the close of trading, Duolingo's stock price was up 36.28% on its first day of trading, with its latest total market capitalization approaching $5 billion.
Duolingo is offering 5.1 million shares to raise $520 million. The initial offering range was $85 to $95, and the range has since been expanded to $95 to $100, with Duolingo's final offering price at $102.
Founded in 2011 in Pittsburgh, USA, Duolingo is committed to reducing economic inequality in the world by providing equal access to educational resources. As of July 2021, Duolingo App has over 500 million users and over 40 million monthly users. Duolingo offers courses in 40 languages, including English, Japanese, Korean, French, and other languages, and helps users learn foreign languages through a game mode for free.
Duolingo's Duolingo English Tests is an artificial intelligence-powered online English assessment test that can be used for study abroad applications. In 2020, the test provided online English proficiency assessments to more than 300,000 test-takers.
The prospectus shows that Duolingo is the best-selling education app in Google Play and the Apple App Store, with more than 500 million downloads and courses in 40 languages for approximately 40 million active users per month. 1.6 million of these paid users in 2020, an 84% increase year-over-year.
In 2020, Duolingo's revenue was $161.7 million, up 129% year-over-year; net loss was $15.8 million, compared to $13.6 million in the prior-year period. In the first quarter of 2021, Multi-Neighborhood revenue was $55.4 million, up 97% year-over-year; net loss was $13.5 million, compared to a loss of $2.2 million in the prior-year period.
Luis Von Ahn, CEO and co-founder of Duolingo said, "Numerous enduring companies continue to grow by going public. Duolingo has a long way to go, and going public will help Duolingo continue to live out its vision." In his public letter, he noted his desire to provide equal and quality educational opportunities while allowing more people to enjoy the dividends of Duolingo's successful business model.
