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Summary
- Language-learning app Duolingo is said to be eyeing a public debut.
- Duolingo was reportedly valued at US$2.4 billion after it secured funding of US$35 million from Durable Capital Partners and General Atlantic in 2020.
- Duolingo stock will likely trade under the ticker symbol DUOL.
Language-learning app Duolingo is eyeing a public debut in the US, having filed its Form S-1 last week. The company was reportedly valued at US$ 2.4 billion after it secured a funding of US$ 35 million from Durable Capital Partners and General Atlantic in 2020.
Duolingo offers app-based courses in at least 40 languages. According to its prospectus, Duolingo is said to have recorded 40 million monthly average users for the first quarter of 2021. Ever since its inception, the app has reportedly been downloaded about 500 million times.
The company also mentioned in its filings with the US Securities and Exchange Commission (SEC) that it plans to launch its stocks on the Nasdaq Stock Market.
The language education company has not revealed an official date or price range for its IPO, although it reportedly aims to raise US$ 100 million in gross proceeds from the offering.
If and when the IPO happens, Duolingo stock will likely trade under the ticker symbol DUOL.
Duolingo's growth and financials
During the pandemic, Duolingo rose to prominence as its language tests got accepted by many universities, which require a language proficiency certificate from students of non-English speaking countries.
The Duolingo English Test, priced at US$ 49 apiece, was purchased 344,000 times in 2020. An its demand rose, Duolingo's revenue more than doubled from US$ 70.8 million in 2019 to US$ 161.7 million in 2020.
In the first quarter of 2021, the company clocked a revenue of US$ 55 million, which was an increase of 97 per cent year-over-year (YoY).
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A majority of the company's revenues comes from the Duolingo Plus subscription plan, which has witnessed a significant rise amid the pandemic. From 900,000 subscribers in 2019, its user base increase to 1.6 million in 2020.
Can you buy DUOL stock?
Generally, retail investors find it difficult to grab shares at the IPO as underwriters tend to give preference to institutional investors.
If you are a retail investor and are interested in exploring Duolingo shares, you could consider checking out some trading platforms that could give you access to DUOL stocks pre-IPO.
Alternatively, you could also consider getting in touch with a stockbroker and taking their assistance in booking the shares.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
