Duolingo Inc (DUOL)

Net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that translates into net income after accounting for all expenses. In the case of Duolingo Inc, the net profit margin has shown some volatility over the past three years.

In 2021, the net profit margin was -23.98%, indicating that the company had a net loss equivalent to almost a quarter of its revenue. This could be a concerning sign for investors and stakeholders, as it suggests that the company's expenses exceeded its revenue by a significant margin.

However, there was a noticeable improvement in 2022, with the net profit margin improving to -16.12%. While still negative, this represents a narrowing of the losses compared to the previous year. The company may have implemented cost-cutting measures or revenue-enhancing strategies to improve its profitability.

By the end of 2023, Duolingo Inc managed to achieve a positive net profit margin of 3.03%. This indicates that the company was able to generate a profit equivalent to 3.03% of its total revenue. This turnaround is a positive development and reflects the company's ability to effectively manage its expenses and generate profits from its operations.

Overall, the trend in Duolingo Inc's net profit margin shows an improvement from significant losses to a positive profit margin over the three-year period. This signals a positive trajectory for the company's financial performance and indicates progress towards achieving sustainable profitability.

Peer comparison

Dec 31, 2023