Duolingo Inc (DUOL)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 102,306 | 17,777 | -58,636 | -59,958 | -15,708 |
| Revenue | US$ in thousands | 748,024 | 531,109 | 369,495 | 51 | 161,696 |
| Pretax margin | 13.68% | 3.35% | -15.87% | -117,564.71% | -9.71% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $102,306K ÷ $748,024K
= 13.68%
Duolingo Inc's pre-tax margin experienced significant fluctuations over the five-year period from 2020 to 2024.
In December 31, 2020, the pre-tax margin was negative at -9.71%, indicating that the company was incurring pre-tax losses relative to its revenue. The following year, in December 31, 2021, the pre-tax margin figure was notably negative at -117,564.71%, which could be attributed to exceptional one-off expenses or irregularities in the financial data.
By December 31, 2022, the pre-tax margin improved to a less negative figure of -15.87%, suggesting that the company's financial performance was starting to show signs of recovery. Subsequently, by December 31, 2023, Duolingo Inc achieved a positive pre-tax margin of 3.35%, indicating that the company was generating pre-tax profits as a percentage of its revenue.
Finally, in December 31, 2024, Duolingo Inc's pre-tax margin further improved to 13.68%, demonstrating a considerable enhancement in the company's profitability and operational efficiency over the five-year period.
Overall, the trend in Duolingo Inc's pre-tax margin reflects a journey from losses to profitability, showcasing the company's ability to enhance its financial performance and achieve positive margins by optimizing its operations and cost structure.
Peer comparison
Dec 31, 2024