Duolingo Inc (DUOL)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	544,379	389,004	270,064	51	115,709
Revenue	US$ in thousands	748,024	531,109	369,495	51	161,696
Gross profit margin		72.78%	73.24%	73.09%	100.00%	71.56%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $544,379K ÷ $748,024K
= 72.78%

Duolingo Inc's gross profit margin has exhibited variations over the years, as per the provided data. The company experienced a significant increase in its gross profit margin from 71.56% as of December 31, 2020, to 100.00% as of December 31, 2021. This extraordinary increase may be attributed to various factors such as cost management strategies, pricing adjustments, or changes in the product mix.

Subsequently, the gross profit margin slightly declined to 73.09% as of December 31, 2022, and then increased marginally to 73.24% as of December 31, 2023. However, by December 31, 2024, the gross profit margin had decreased to 72.78%.

Overall, Duolingo Inc's gross profit margin has generally been at a high level, surpassing 70% in most of the years in the dataset. This indicates that the company has been able to effectively manage its production costs and generate a substantial gross profit relative to its revenues. The fluctuations observed in the gross profit margin suggest possible changes in the company's pricing strategies, cost structures, or competitive dynamics impacting its profitability over the years.