Duolingo Inc (DUOL)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 46,326 | 17,777 | -10,570 | -31,894 | -49,208 | -58,636 | -62,831 | -73,358 | -58,629 |
| Revenue (ttm) | US$ in thousands | 583,001 | 531,109 | 483,948 | 442,389 | 403,936 | 369,495 | 338,685 | 306,215 | 276,632 |
| Pretax margin | 7.95% | 3.35% | -2.18% | -7.21% | -12.18% | -15.87% | -18.55% | -23.96% | -21.19% |
March 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $46,326K ÷ $583,001K
= 7.95%
Duolingo Inc's pretax margin has shown a positive trend over the past few quarters, indicating an improvement in the company's ability to generate profits before accounting for taxes. The pretax margin increased from negative values in the first three quarters of 2022, indicating losses, to positive values in the subsequent quarters of 2023 and 2024. This indicates a shift towards profitability and efficiency in managing operating expenses relative to revenue.
The pretax margin of 7.95% as of March 31, 2024, reflects that for every dollar of revenue generated, the company is earning approximately 7.95 cents before taxes. This improvement suggests that Duolingo Inc has been able to control its operating expenses and increase its profitability over time. Monitoring this trend further will be important to assess the company's ongoing financial health and operational efficiency.
Peer comparison
Mar 31, 2024