Duolingo sees strong growth and AI expansion ahead of 2025

Duolingo, a language-learning company, has seen significant growth since its IPO in 2021, with its stock price tripling. Monthly active users increased from 41.7 million in Q3 2021 to 113.1 million in Q3 2024, while paid subscribers rose from 2.2 million to 8.6 million. The company recently introduced a higher subscription tier called Duolingo Max, which includes generative AI features. This new offering aims to enhance user engagement, with a video-call feature that simulates real-life conversations. Adoption of Max has been positive, although it is not yet available to all users. As Duolingo prepares for 2025, the expansion of its AI tools could drive further revenue growth. With a majority of its income coming from subscriptions, the success of the Max tier may significantly impact the company's financial performance next year.