Duolingo Inc (DUOL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 17,777 | -58,636 | -59,958 |
| Revenue | US$ in thousands | 531,109 | 369,495 | 250,772 |
| Pretax margin | 3.35% | -15.87% | -23.91% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $17,777K ÷ $531,109K
= 3.35%
Duolingo Inc has shown an improvement in its pretax margin over the last three years. The pretax margin was -23.91% in 2021, which improved to -15.87% in 2022 and further increased to 3.35% in 2023. This positive trend indicates that the company's profitability before taxes has been on the rise, with a significant turnaround from negative margins to a positive margin in the most recent year. This improvement in pretax margin suggests that Duolingo Inc has been successfully managing its costs and generating more income relative to its revenues, which is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2023