Severin Hacker, Chief Technology Officer and Co-Founder of Duolingo , Inc. (NASDAQ:DUOL), recently sold shares in the language-learning platform, totaling approximately $14.8 million. The transactions occurred on December 13, 2024, at prices ranging from $335.13 to $344.54 per share. The sale comes as Duolingo demonstrates strong financial performance, with impressive revenue growth of 42% and industry-leading gross margins of 73%. According to InvestingPro analysis, the company currently trades above its Fair Value, with a market capitalization of $15.3 billion.
Hacker's sales were part of a pre-established trading plan under Rule 10b5-1, adopted on September 11, 2024. Following these sales, Hacker maintains direct ownership of 372 shares of Class A Common Stock.
In addition to the sales, Hacker executed a conversion of 43,826 shares of Class B Common Stock to Class A Common Stock, which did not involve any financial exchange as the conversion price was $0. These transactions reflect Hacker's ongoing strategic management of his holdings in the company.
In other recent news, Duolingo Inc. has experienced a series of significant developments. BofA Securities has downgraded the language learning platform from "Buy" to "Neutral", citing less upside potential due to peak valuation. Despite this, the firm acknowledges Duolingo's growth trajectory and long-term potential, with prospects of achieving 40% EBITDA margins, a substantial increase from the current 26%.
In another development, Duolingo has reported strong growth in its recent earnings call. The company highlighted a 54% year-over-year increase in daily active users (DAUs) and raised its full-year guidance. The company anticipates bookings growth of 36% and revenue growth of 40%. Furthermore, Duolingo's new AI-powered video call feature, part of the Duolingo Max subscription tier, has been rolled out to about half of its users, with further expansion planned.
These recent developments show Duolingo's commitment to growth and innovation in the language learning sector. While the company faces some challenges, such as uncertainty around long-term subscription ratios, the overall outlook remains positive, with the company poised for continued expansion.
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