Duolingo shares shot up nearly 14% after the language-learning app raised its full-year revenue guidance. The jump follows strong user growth fueled by AI-powered features.
The company now expects revenue between $1.01 billion and $1.02 billion, beating its previous estimate of $987 million to $996 million. Bookings guidance also jumped to $1.15 billion-$1.16 billion.
CEO Luis von Ahn said: 
“We exceeded our own high expectations for bookings and revenue this quarter, and did it while expanding profitability.”
Daily active users soared 40% year-over-year to nearly 48 million, up from 34 million. The company credits AI tools like video-call conversation practice for some paid users and new course offerings like chess.
Duolingo also acquired London-based music gaming startup NextBeat for an undisclosed sum to expand beyond language learning.
Revenue hit $252 million this quarter, up 41% year-over-year, topping Wall Street’s $241 million estimate. Net income rose 84% to about $45 million, or 91 cents per share.
Duolingo expects Q3 revenue between $257 million and $261 million, above analysts’ $253 million forecast. Its stock is now up over 34% this year.
https://investors.duolingo.com/static-files/6c34ca7a-c70f-4a6d-a96e-2b6d5affed4c
