Shares of Duolingo, Inc. (NASDAQ: DUOL) are soaring 5.84% in pre-market trading on Monday, as investors appear to be reassessing the language learning app's strong fourth-quarter performance. This upward movement comes despite a reported 25.7% decline following the company's recent earnings report.
Duolingo's Q4 results showcased impressive growth, with revenues reaching $209.6 million, up 38.8% year-over-year and surpassing analysts' expectations by 2.1%. The company also reported a significant increase in its user base, with 116.7 million users, representing a 32% year-over-year growth. These strong fundamentals may be driving renewed investor interest in the stock.
However, it's worth noting that Duolingo's recent quarter was described as "slower" in some aspects, with EBITDA guidance for the next quarter missing analysts' expectations. This mixed outlook initially led to a sell-off, but today's pre-market surge suggests that investors are now focusing on the company's robust revenue growth and expanding user base as indicators of its long-term potential in the competitive online education market.
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