Duolingo, the language-learning app developer, has filed for an initial public offering on the US’s Nasdaq stock exchange, home to some of the world’s biggest tech firms.

The company did not state how much it intends to raise via the flotation – but its most recent valuation was $2.4 billion, after it confirmed it had raised $35 million in November from Durable Capital and General Atlantic.

The Pittsburgh-based company, which says it has more than 500 million downloads and offers courses in 40 languages to about 40 million monthly active users, relies on an ad-based, “freemium” business model in which most of its users do not pay for its offerings.

In filings with the US Securities and Exchange Commission, Duolingo stated that its revenue had doubled to $161.7 million in 2020 from $70.8 million a year prior.

In the quarter ended March 31, the company also more than doubled its year-over-year revenue, to $55.4 million from $28.1 million. It also said nearly three-fourths of its latest quarterly revenue came from subscriptions to the $7-a-month Duolingo Plus, while about 17% came from advertising sales and about 11% came from the Duolingo English Test and other revenue.

The company’s net loss rose to $15.8 million last year, compared with $13.6 million in 2019.

Date published: 29 June 2021

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