Why Duolingo Stock Flew 34% Higher in February

Shares of Duolingo (NASDAQ: DUOL) rose by 33.6% in February, according to data from S&P Global Market Intelligence. A thoroughly Street-thumping earnings report erased the language-learning expert's prior price drop, which started around the holidays.

Your average Wall Street analyst expected the company would report fourth-quarter earnings of roughly $0.17 per diluted share on sales near $148 million. In actuality, it generated earnings of $0.26 per share on revenue of $151 million. In other words, its 45% year-over-year revenue growth outpaced the Street's expectations by a hair while the bottom line swung up from a $0.35 loss per share much faster than expected.

More importantly, Duolingo presented stellar growth in its user and subscriber metrics. Monthly active users (MAUs) rose 46% from the year-ago period while the more deeply engaged daily active users (DAUs) increased by 65%. Most of Duolingo's users are still on its ad-supported free plan, but the count of paid subscribers also jumped 57%.

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Source Fool.com