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And the best way to do that is to tap into a community of talented designers who are passionate about what they do. We know you want consistently high quality and unique assets for your projects.

With unlimited downloads, you’re free to push your creative boundaries and try new things. Therefore, I'd rather wait to see if Duolingo's business stabilizes before buying its stock.You want to focus on great design, not worry about adding credits or managing download limits. That high price-to-sales ratio might be justified if it can maintain a 40%-50% growth rate beyond 2021 - but a lot of headwinds could throttle its growth. The valuation and verdictĭuolingo's stock currently trades at 20 times this year's sales. The company also expects the growth of its English Test unit, which has been growing faster than its subscriptions and advertising units, to decelerate after the pandemic ends.ĭuolingo's decision to allow its employees to sell a quarter of their vested shares within the first week - instead of waiting for the 180-day lockup period to end - also suggests it might be too early for retail investors to buy the stock. Its app was reportedly suspended in China in early August amid the country's ongoing crackdown on online education platforms, and it's unclear when (or if) it will return. Looking ahead, Duolingo faces unpredictable headwinds. It expects that percentage to remain high as it develops new features and invests in higher-growth markets like China. Second, Duolingo is spending a lot of its revenue (33% in 2020 and 39% in the first half of 2021) on research and development.

However, gaining new users might offset that strategy, especially as the company expands into new markets. Duolingo believes it can reduce those costs by retaining its subscribers for longer than a year. First, it pays 30% of its revenue to app-store operators like Apple ( AAPL 0.55%) and Alphabet's ( GOOG 3.76%) ( GOOGL 3.78%) Google during a member's first 12-month subscription, and a 15% cut in subsequent years. Duolingo is struggling to turn profitable for two main reasons.

Duolingo plus cost 2021