Duolingo Inc (DUOL)

Operating 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
Operating income (ttm) US$ in thousands 62,932 53,845 35,601 11,699 -13,259 -36,206 -51,698 -61,867 -65,195 -64,458 -72,996 -58,440 -60,007 -53,163 -27,530 -26,970 -16,011
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
Operating profit margin 8.41% 7.81% 5.61% 2.01% -2.50% -7.48% -11.69% -15.32% -17.64% -19.03% -23.84% -21.13% -23.93% -23.52% -13.25% -14.27% -9.90%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $62,932K ÷ $748,024K
= 8.41%

Duolingo Inc's operating profit margin has shown a trend of improvement over the analyzed period. It started at a negative level at the end of 2020 and continued to decrease further until reaching its lowest point of -23.93% by the end of 2021. However, the company began to demonstrate a recovery as the operating profit margin started to climb back up steadily from the beginning of 2022. By the end of 2024, the operating profit margin had turned positive, indicating a significant enhancement in the company's operational efficiency and profitability. This positive trend in the operating profit margin suggests that Duolingo Inc has been able to effectively manage its operational costs, increase revenues, or a combination of both during this period.