Why Duolingo Stock Dropped Despite Strong Earnings
Duolingo (NASDAQ: DUOL) delivered a strong set of results in its latest earnings report. Revenue grew about 35% year over year to roughly $283 million in the fourth quarter, while the company surpassed $1 billion in annual bookings for the first time. Profitability remained solid, with adjusted EBITDA margins near 30%.
By most operating metrics, the business continues to execute well. Yet the stock fell. That disconnect comes down to one thing: A change in investors' expectations. Let's see why.
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Source Fool.com
