Duolingo Inc (DUOL)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	88,574	16,067	-59,574	-60,135	-15,776
Revenue	US$ in thousands	748,024	531,109	369,495	51	161,696
Net profit margin		11.84%	3.03%	-16.12%	-117,911.76%	-9.76%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $88,574K ÷ $748,024K
= 11.84%

The net profit margin, representing the profitability of Duolingo Inc, has seen significant fluctuations over the past few years. In December 2020, the company reported a net profit margin of -9.76%, indicating that the company's expenses exceeded its revenues, resulting in a negative profit margin. This negative trend worsened drastically in December 2021 when the net profit margin plummeted to -117,911.76%, suggesting significant losses relative to revenue.

However, the company managed to improve its profitability in December 2022, with a net profit margin of -16.12%, although still negative. The following year, in December 2023, Duolingo Inc achieved a positive net profit margin of 3.03%, indicating that the company generated a profit after accounting for all expenses.

Moreover, the most recent data available for December 2024 shows a notable improvement in profitability, with a net profit margin of 11.84%. This positive margin signifies that Duolingo Inc was able to generate a profit of 11.84% of its total revenue during that period.

Overall, the fluctuating net profit margins reflect the company's efforts to manage its expenses and improve operational efficiency, leading to a notable turnaround in profitability from significant losses to positive margins in recent years.