Duolingo Inc (DUOL)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 62,595 | -13,259 | -65,195 | 51 | -16,011 |
| Revenue | US$ in thousands | 748,024 | 531,109 | 369,495 | 51 | 161,696 |
| Operating profit margin | 8.37% | -2.50% | -17.64% | 100.00% | -9.90% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $62,595K ÷ $748,024K
= 8.37%
Duolingo Inc's operating profit margin has shown significant fluctuations over the past five years. In December 2020, the company reported a negative operating profit margin of -9.90%, indicating that its operating expenses exceeded its operating income. However, the following year, in December 2021, Duolingo achieved a remarkable operating profit margin of 100.00%, reflecting strong operational efficiency and profitability.
The trend reversed in December 2022, with a negative operating profit margin of -17.64%, highlighting potential challenges or increased costs impacting the company's profitability. Subsequently, in December 2023, the operating profit margin improved slightly to -2.50%, though it remained in the negative territory, indicating ongoing operational difficulties.
By December 2024, Duolingo showed a positive turnaround in its operating profit margin, reaching 8.37%. This improvement suggests that the company made strategic adjustments to enhance its operational performance and generate higher profits from its core business activities.
Overall, Duolingo Inc's operating profit margin has been volatile, with fluctuations from negative to positive levels. It is essential for the company to maintain a sustainable and positive operating profit margin to ensure long-term profitability and growth.
Peer comparison
Dec 31, 2024