Duolingo Inc (DUOL)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Gross profit | US$ in thousands | 389,004 | 270,064 | 181,586 |
| Revenue | US$ in thousands | 531,109 | 369,495 | 250,772 |
| Gross profit margin | 73.24% | 73.09% | 72.41% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $389,004K ÷ $531,109K
= 73.24%
Duolingo Inc's gross profit margin has shown a consistent increase over the past three years, reaching 73.24% as of December 31, 2023, compared to 73.09% in 2022 and 72.41% in 2021. This improvement indicates that the company has been effectively managing its production costs and increasing its profitability on sales. A rising gross profit margin suggests that Duolingo is efficiently controlling its direct costs related to producing its language learning products or services. This trend may result from better pricing strategies, operational efficiencies, or cost-cutting measures implemented by the company. Overall, Duolingo's ability to consistently improve its gross profit margin over the years reflects positively on its financial performance and operational effectiveness in generating profits from its core business activities.
Peer comparison
Dec 31, 2023