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Duolingo's soft quarterly revenue outlook overshadows stronger user growth forecast
['Akash Sriram', 'Wed', 'August At Pm Gmt', 'Min Read']
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By Akash SriramAug 5 (Reuters) - Duolingo forecast third-quarter revenue below Wall Street expectations on Wednesday, tempering optimism from its stronger user growth forecast as the language-learning company prioritizes boosting engagement over near-term monetization.
The company has been putting user growth ahead of near-term monetization this year, testing ways to increase subscription revenue without adding friction for its large base of free users.
CEO Luis von Ahn said Duolingo now expects daily active user (DAU) growth to remain above 20% for the rest of the year, reflecting product improvements, stronger retention and marketing efforts.
Second-quarter revenue rose 18% to $298.5 million, beating analysts' average estimate of $295.6 million, according to data compiled by LSEG.
The company projected third-quarter revenue of about $302 million, below analysts' estimate of about $304 million.