Duolingo Inc (DUOL)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020
Gross profit (ttm)	US$ in thousands	541,854	500,414	461,370	424,742	387,775	354,644	323,037	294,503	270,064	247,072	222,826	200,975	181,586	163,929	150,616	136,152	115,709
Revenue (ttm)	US$ in thousands	748,024	689,459	634,489	583,001	531,109	483,948	442,389	403,936	369,495	338,685	306,215	276,632	250,772	226,026	207,736	188,944	161,696
Gross profit margin		72.44%	72.58%	72.72%	72.85%	73.01%	73.28%	73.02%	72.91%	73.09%	72.95%	72.77%	72.65%	72.41%	72.53%	72.50%	72.06%	71.56%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $541,854K ÷ $748,024K
= 72.44%

Duolingo Inc has demonstrated a consistent and generally increasing trend in its gross profit margin over the analyzed period from December 31, 2020, to December 31, 2024. The company's gross profit margin started at 71.56% in December 2020 and reached a peak of 73.28% in September 30, 2023, before gradually declining to 72.44% by December 31, 2024.

Overall, Duolingo Inc has maintained a strong gross profit margin above 70% throughout the period, indicating the company's ability to effectively manage its production costs and generate healthy profits from its core operations. The slight fluctuations in the gross profit margin may be attributed to various factors such as changes in pricing strategies, input costs, and sales volumes. This stability and upward trend in the gross profit margin reflect positively on Duolingo Inc's operational efficiency and profitability.