Duolingo (DUOL) 4 Mar 222021 Q4 Earnings call transcript

Good day and welcome to the Duolingo Fourth Quarter 2021 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Debbie Belevan, Head of Investor Relations. Please go ahead.

Thank you, operator and welcome everyone to Duolingo’s fourth quarter and full year 2021 earnings call. we which shareholder our you at closed, results with IR market investors.duolingo.com. commentary, and can after released letter a our website Today, find on and are on our Meese, Officer. von call me Business Skaruppa, today With Ahn, and the Chief Co-Founder CEO; Bob Matt CFO; Luis

We with remarks some before to the call will begin Q&A. brief opening

risk that performance, the make could you risks filings. to our future regarding Just future as everyone of during that new statements to based be material are results in to to we factors believe actual of a on result to to this as obligation contained and statements cause forward-looking which and financial differ remind and today our These caution subject forward-looking uncertainties events. these call, or reasonable we we will information undertake We are events SEC assumptions that materially. no statements update review

present These results now a the with will or analyzing we encourage isolation when both from to measures substitute non-GAAP are financial consider to I’d you And be we in our measures to Luis. like GAAP our over measures that, Additionally, to intended the superior turn call non-GAAP performance. today’s considered and call. and for GAAP all to on not

you, and welcome everyone. Thank Debbie

that to global and provide with of remarks with are then stand performance, Q&A. shareholder contains want discussion the letter hearts brief our in right by start country peace our into towards and just Ukraine, an will that the we Ukrainian get I a working company are Since people. our we world. acknowledging saying We situation that serves every learners all the in horrible those in in-depth some

we the the expanding mission. by we do, to universally I’d in with our We by to the company, and Since is languages First, mission into started more just growth. but we the very of progress reminding guided Not economic make to but our to this everyone I’d areas are public, do as help also amazing XXXX. out best available. other out been even education has Everything that about touch world develop education it in getting say the take order are reduce entire we we our mission. company lives. to I made start team inequality, delivered to like mission, started. started we’ve always they proud we tremendous also and congratulate performance I subscriber delivered only incredible on towards but people’s did user our am in like

grew bookings total and revenue Our XX%. by both

unwavering number effective. Our conversions user engagement focus new products subscription. to premium that team rolled continued its and are ultimately on of out we XXXX, drove a further that increased and innovations our creating and product quality more the retention In fun

highest had In MAUs the fact, the DAUs, fourth during net ever. we and number of quarter, new subscribers

to The organically We a continue language is word of brand beloved through that with of build growth comes vast also mouth. majority our synonymous learning.

this we As into will continue move XXXX, momentum. upon we building

we that design introduce entirely engagement. app screen drive the to planning are new will believe Duolingo We home an further of user

features Duolingo will with more making continue that other. to We each learners with social interact allow

of around continue the world. institutions English at will Duolingo grow the to We Test acceptance

end to launch discuss Matt a We with to drive ABC now, app And will the will fresh efficacy for excited math outlook XXXX. are app a of and refine the design our the and Duolingo we year. engagement learning towards

Thanks, Luis.

proud and that to great performance. like I’d are our for very our reiterate of we First, year was a it business

the and product accelerating initiatives paid Our marketing and and surpassed own in fourth record high our we expectations, in metrics off resulting quarter. growth

R&D continue better to our fuel and increase monetization investment products our plan in prioritizing to in our we even make opportunities. XXXX, order growth to ahead Looking to

guiding We total our bookings, confirmed of being million some to year to QX And believe very account for guiding we are This team, beneficiary the the we in we QX and and $XX.X EBITDA $XX negative for revenue, and $X sure We for XXXX, revenue was employees takes negative want million the EBITDA we to million. talented $XXX million and to product great negative for $XX.X last million XXXX, for $X.X point guidance to million into to invest with full have fourth means adjusted adjusted in to are started us, for seasonality been in $X.X of talent engineering, I $XXX R&D significantly talent. QX million year design. we strongest that this million typical year. while that to quarters. booking million $XXX the $X For plan our negative million. of $XXX have. total year $XX new full million of our to quarter year to seasonality, keeping investing resignation million bookings, a last as that to make out in added to have And our

attrition than seize We opportunity. want was year. X% Our last the this and will trend rate we to continue less believe

consistent learning able grown And attract ABC that’s we the how and do to what through that believe in we fun to of helped product. that, approach app, we been historically. with because to and DET, language has have our investment talent us in in our grow. growth plan culture We and have our math product in our This mission-driven is

On the underpenetrated brand influencers invest markets marketing to continue spend like plan continue our we and highly marketing efficient DAU on marketing side, in in performance global to innovative they and to campaign.

test bringing marketing our DET. plan efforts takers also to We to new related in the to expand

business our it cost are that since as we is EBITDA we did with to continue capital our founding, discipline I in we And why Luis. is the now, plan will adjusted year, last breakeven. to which manage turn to and back confident nearly have we guidance As

Thank you, Matt.

for in work up, each thank this to happy hard questions. your trust sharing support. who member like forward your quarters. and Before your our . team look to coming I’d shareholders We We thank wrap year. with to all this take all we thank us more learners in take to you our will every the we opportunity put their and now, for And to be

now will go Instructions] of our ahead. And come the We Mario session. will begin question Lu Barclays. first from Please [Operator question-and-answer

the Great. questions. Thanks for taking

the So, one coming X.X%, is on the conversion, big first in pretty quarter. from at even improvement a it’s third

in and And if could also in the Should what Google and is EBITDA the within conversion Just changes ‘XX fully curious COGS that for about kind drove bit a margin secondly, the items. would identify marketing Any the wondering cost I what Thanks. guidance offset then fiscal ‘XX, Play of implied could to you if you improvement this each and percentage guidance? was of flat marketing? in talk of color due help? G&A sales by there and expect and we leverage being now

Hi, Mario. Luis. This is

the asked increase you drove in first, what the conversion. So

running percentage since increased package A/B we The people about by They tests. in we And about per X to are And about – by Plus things basically literally were year. more increased seem launched convert. just We points X saw, this time to just it Duolingo tests year. year. to get you conversions that’s in hundreds point page. X are that the we seen XXXX. in As We have A/B percentage types subscription conversion whole have very increasing points we the last the of in of ever increases just some increasing purchase the by have been is changes small to these way of are percentage

the package. Some features new of to them are premium bigger things like

was things. A lot of it’s which basically this just the a called big in is particularly were couple just of a them been one basically So, change things feature, that legendary of color. year,

you screen, called can circles And basically We legend skills. – the of added you were are there, only so more some a home our subscriber if around they the you go for added circle a can only and conversion. If you that time. Plus red sixth do that that before Xx. skills, And in

I So including other the is rate. answer like couple – implied the that, drove add let there Matt it. will of stuff questions, what’s that

still costs margin, about mainly the Thanks, you basis gross and in comes When we mentioned, as for are Google we Yes. points mentioned the improvement costs. that. – are from we expecting Mario, shift to Play as call, on last XXX it

holds And we times still invest around in R&D. your operating multiple leverage, we to last that mentioned as point then continue to So, from to call. before, plan

should not expect percentage a leverage to you see in So, that as operating revenue. of

first However, ton of And this operating close, the operating in expect leverage being be just is sales year year. this marketing, public, given leverage full do over and it of there we a our on than not course pretty the G&A, year. will

question. Yes, that’s good thanks. So a

Matt. Thanks, Excellent. Great.

Sachs. The go comes Eric of next question Goldman Please from Sheridan ahead.

under-penetrated question about a where or standpoint? the margins, the might a taking can bit greater I help for much we about in marketing dollars just could. those to following if you much. where Maybe of aimed up continues spent get and on qualitative Mario’s questions. the you talked but some about more sort a the Thank Two, markets on maybe from you little You either of so be unpack can dollars, of Thanks XXXX? dollars product how side quantitative those get driving in return the the platform so scale adoption, and granular as on little not XXXX, think but

Eric, question. you, your for Thank

of so our our growth from thing So, organic, to of vast the mouth. of comes the first majority word note is growth most is

it marketing. in is mean, penetrated. and markets I a fastest have are all some markets do less Asia our is we just what spending we market, the other but that number to – penetrated are Americas. take particular, of We have than like we decided the Europe growing less is In

pick which So is to we that the best then do There try we we few are we we to And target. market. typically what ways decide, country. is a – are a

that India spent a money. for per we The certain then spend influencer pretty country not works that is some countries found have marketing example. like well and we lot. in And amount We Japan,

– is then of going So, the then just takes size that gets is the and would Japan probably country and what going, spend does our year that up. or the maybe $X organic that us a million we in $X million of word mouth flywheel

entirely brand we just you seen by paid, gotten – TikTok, a we is that example, the don’t to way, for has the money paid example, is actually, million views not users. have of lot our is are our on really just because on This so literally all I is effort over marketing marketing. that. Another gone spend it. XXX the and that those things But of are this have also able who for to organic our this mean, TikTok appeal of strong TikTok kind our

of that So, stuff this we is type the do.

Great. the color. it. Thank you Appreciate for so much

Please Kessler from comes Aaron question Raymond next of The James. go ahead.

then pricing regional you’re initiatives, Maybe A the of and questions. of Thank U.S. versus of at-home And maybe Great. Duolingo can revenues you the maybe an you. updated are international there, see update can usage? this first, well bookings us schools, paid progress kind the for lines, kind effort just as along for breakout us drive Thank maybe finally, starting also couple same if you. subscriptions or for to you increased of you if subs? give on making

Great question.

So And IPO-ed, in we trying before few background, the what to in pricing, was then, some prices different in done that right price we started regional give we just course, knew, countries. since not of when the of single optimal. world. a same we country terms We in had we’ve every IPO-ed or

we it, A/B And the all, Duolingo, we doing whenever on test. change measure. The on sign for you do, far, we to something, prices. for there people is we we while doing we it to a four subscribe tests in can’t for they little prices, we what first a have takes price then multiple run of which where And on know a a while because country and while takes new take this them. renewal working run is these And we’ve A/B it rates, a And are them of so everything to whenever because measure world. try while also, we’re are some different for up to basically reason take course, super-fast countries every of launched

again, of we country will bookings. that hundreds our bookings this we of subscribers also I tests. are impact. increasing But going increase to I’d for basically takes many levers So, This of will our every thing What is those this year, some the running is single pricing penetration and some say I one throughout Ultimately, say of will levers. have probably and that time. an is we A/B have the And say just this different believe one about have by way increasing paid conversion regional now. of other is we in is just this prices

believe going that some those are happening revenue not the probably from the U.S., people it’s is get not something places, that the Europe, most developed where we or too insane Western this bookings prices that are our impact of unlikely it’s going of what’s to the may double like change have to to much. because However, countries In usually etcetera. countries

prices probably probably lower end those one prices is up more whether of where in product the these kind many there – price the are really to capita barrier places we likely for will too lower. There countries change are expensive, the change the more, or usually in GDP Now our developing is of per the happening. is so more but we will is to will one. people countries subscribe, But than

just are like is or that the they in a mature that of Europe. as not in many digital in these U.S. just countries, subscriptions country one are Western Another

that us condition see regional many a these a pricing we So countries, not really as a necessarily more to sufficient condition. is bookings of make lot something but necessary for from

Duolingo many So XXXX. us track Duolingo That Schools using the just asked our you they schools. really so it in definitely belief, are to because to adoption We called get initiatives, more you something when context, we have we’re the some relaunched have use students’ for way, they about use don’t exactly progress. Duolingo necessarily Schools, we schools us. that can answer, just also don’t and well in a is teachers so us Duolingo schools. that’s app how that that best give will use also for – this can are important. normal they it teachers schools did is and more seeing I Right the and to where just now, is Schools use dashboard the by tell their know students students The thing that’s for

best about internationally. other some of are in for XX% teachers our language So Duolingo the use belief U.S. there that’s is Schools. And that U.S., numbers

So we’re seeing that help with adoption.

far, subscriptions, we So ultimately for students our end, in don’t subscribing are of exactly assuming that what reports these well. any on but does many have the we this are as

that thing base. helping main is with user the growing So this is our

And of materially the then, was the there jump about U.S. which U.S. world, it XXXX, one your world. didn’t in XX% change versus Aaron, and rest of remainder on to of it just in from questions on rest XXXX, XX%,

that So pretty stayed consistent.

bookings. that’s And

Revenue.

Revenue. That’s revenue.

That’s Thank you. Great. helpful.

Our Blair. of next question comes from Ralph Schackart William Please go ahead.

taking Good my evening. Thanks question. for

seeing you’re family the you the plan, some talked that and by On about early of results year. that encouraged in this the increasing letter, visibility

you’re might thoughts thoughts know Just impact conversion that and and but I just forward? XXXX any it’s that curious on probably product seeing, what going on and how early,

that excited hundreds by is you And excited of have we regional we about. pricing is the you, another it in Plan Family the are Ralph, just something by growing just question, early by say to actually. Family hundreds is levers want running tests. a Yes. that we – thank very excited reasons. do is it’s but mean, it pretty It’s for pull, one Right many low grow plan percentage of days. is bookings ultimately it’s our are its and remind we’re two way. that very but the your Plan, fast, we’re points I is This way one all Plan now, one, many, and I about. Family for our in subscribers everyone Family to very

your really other that the Plan for and it using family, maybe still you you value The Family in a maybe daughter happening ends our in for still son lifetime stop your subscribe your up of your significant using first one anybody what is And but plan. is as your family is and to plan but family long it, in Duolingo, seems paying. keep as because also you is family increase that subscribers,

are family really that just terms better payers. have significantly data have who we that in of in So those retention shows plan the

elementary reason This the the we’re should I’m and our by more quite So this very is bit. personally long-term, for then launched it, other our products excited other family. people a a that. Duolingo, subscription math. app the app retention why And in already, in with learn to Duolingo help excited, belong have they we can that people a on, who on in at these We cross-promote for more And to the how family. our a math school family is know lot ABC plan a we working literacy the we’re to we’re be working plan, there. are in a have products people of more Those more on kids read the to we example, X. we call X which for are ages, the more will family able And

the mean, is way a So it, new for really it, we yet not doing products. going we’re many way that. be see plan the I our see of we But family strong glue to

So this why we’re by it. is excited

I’d more. Great. Maybe Luis. just one add Thanks,

out Just talk specifically as maybe languages, broadening beyond about you math.

the I is know? areas, in be Just just on helpful out the Thank that a curious terms of curious, how be going, geographic certain bit focused testing I’m testing. you. that would will be, it roll the to rollout, you just will you of way plan how to but do just know quite wide

Great.

on looks – beautiful. So it. yes, but It it But so the released biased, app, have not math course, working – we’re I’m we working we’re of it yet.

excited to it that’s decided what at because But but and at is we’re localize be cannot thing one that people year. the something know beginning least other countries. rollout likely this quite that that, comment yes, we going day that’s pretty say to I We’re English-speaking pretty to think English I exactly it. going roll important plan to for I on I to if out, X. that to it on should we’re very going understand. is about release yet the on going we’re haven’t on – don’t

We’re to do it’s going be at we to grow roll it going products organically. have Duolingo is way and we product great. But out, the our

at a to going it put what grown really sort it and out, Duolingo, do it freemium then to of going time. we’re that and So start going take for then that’s it’s to size, we’re it monetizing to start to some growing has after and in is time going some because take some to we manner reasonable

the of meaningful next is, to and you sense year, year year, this user have something math kind My bit revenue revenue you’re that’s then and when use we’re give to my probably expect So next the if not is after quite any that. should year. launch app sense grow base this expecting going to basically, meaningful to not even probably a

That makes you, Really Luis. helpful. sense. Thank

comes Patterson from question ahead. next of KeyBanc. The Justin go Please

in Great. to sounds conversion redesign and rollouts for of impact meaningful do app. positive has the like Thank prior core like very the about you features And much. innovation more Matt, legendary? year LTV. future very and then language more the it been versus toward Luis, for transition could How hearts you engagement and upon have a think social annual memberships

you of dynamic, that reinvestment and do you. Thank across marketing pace think how engineering? Given the about

about innovation. because is I I you, a great Thank This mean, Justin. our to love question, talk

I redesign we’re yes, was of beautiful. out Again, about screen. of we’re home One very a this is think it features this year. So that excited number the pulling

of have We’re I number good effects. start a think testing going to going to it’s it. And

in hope the think I user retention going to it’s is retention, that improve our particular. freeze

been our I scientists. done redesign of We input really it’s help teach lot from mean better. also the a new with has us learning going to think

going us to bit. So And app it’s simplify I quite better. going help also think to the I teach a it’s think

the we to going like quite more things more the about more we a mature, complex. think And app of One is bit. I simplification, become become and it as Duolingo that’s help

see, one just much next you the So of I thing, think, changes features we a year. question? should probably see and app the how it and have And a number download just that lot doing Matt, the of That’s other we’re you’ll over things. but

to a the the quarter it me to has about point we great gives just hundreds question a focus I’m just It’s to and said, Justin. of echo LTV. of because in increase glad tests Thanks, with subscriber is way every you tests, every run on that Luis LTV. experiment which bunch ways year chance a something asked Yes. already

which continually time. are a over is is improver plan You annual some these just on that’s opportunities. mentioned are the great focused LTV one, is about how family really our growth improving plan another. LTV, think Hearts & we that of ways the Health, And of examples But of we

language the We app. learning have growth in opportunities main

We opportunities math, assessment and have literacy growth Luis as mentioned. and and just

to not bit there opportunities like a and And should operating those much we’ve and at I’ve you to into again, line. execute to have is year, excited playbooks, while in of this opportunities And innovative have really why in we the marketing really so the leverage against R&D R&D our efficient so against we’re and we invest they expect to gotten mentioned returns especially those That’s more in see to talent opposed on leverage – to back in R&D. broken expect we’re that capitalize more to can experiments markets, our there. talent we operating see do marketing ROIs. And to high specifically, we developing all marketing, to because in specifically will going an expect deploy capital as or think absolute high capital go dollar those record we see something on in a spend and and we

you. Thank Great.

Schindler comes America. Nat from Bank of question Our ahead. go of Please next

Hi, this. guys. Yes. Thanks for

I and want is a Where number to job year, in a conversion that world. bit guys through did break bit maybe higher this it maybe little And we when a walk the You Where and developed to that’s barrier? you think by functional and go? by obviously. pain? I do great us you a if region? the know assume – what Can paying could is down such the little increasing Europe much U.S. hit your

Nat. question, this for you thank Well,

things. a think so I okay, of couple is – there

there. That’s hard case. we So don’t and in again, just way We of It’s points payer how anywhere it’s the near higher is kind people saw, I an you a by there basically, more countries. well, of subscribe. – mean of Generally, are think as we actually grow acceleration to right. A/B is wealthier wall, tests we you’re hundreds generally percentage very can we more of are growing say that by to high get. basically how the get this, running conversion

long We list A/B still the run next have tests years. to a of over several

We that can have levers a lot pull. we of

that And that’s to that it’s continue paid growing. much or mean going so subscribers. how I we are know X%, But right or now, think like very something it’s our we hard for around to us users grow. to monthly X.X% of active going

at You comps. could look

dating our model the pretty those – around are apps. they to XX%. So, is are And at business similar

earnest. around only in the next get. going over around about I Duolingo Spotify, end early. in Our going still towards here continue our But mean we of caution This how can’t where would to just years. dating The again, why something even I are though XXXX I I monetizing for think is started of monetization it don’t that we has get increasing years, don’t something are say thing kind we business know is the to the – XX started XXXX is, that last is few to I pretty been saying, similar we which to like really we apps XX%. I to models high are. pretty see ultimately, XX%, but can to get no actually want are I reason don’t

and So, just opportunities there a lot don’t is still. a we lot know of that

the just the thing call Yes. about would And go back to said only add framework. last earnings to our to on growth that is what Nat, I I

metric, it, of just a growth user we and a we are an pre-COVID driving And rates. growth saw But so penetration. and user as Obviously, user that to remember, We well. track it’s important saw reacceleration not we that’s up. return level

So, monetization. and growth nicely obviously ways heartened we great, is to User are have by growing that. multiple we increase our

of and really which that will retention conversion, The that saw strong really other we that metric things QX two trends continue both or underlying on. we are in believe

really user are three of growth, doing sorry, and it’s just So, on we retention, really dimensions, conversion – growth all those on. user retention well

do Then it’s a this, bit, just who not countries, are shift? versus there it on of tiny are those something? using surprising. follow-up in of just payers demographic so heavily they on a of self-improvement learning Okay. trip your geographic kids towards mostly shift the the a Isn’t family or demographic just for doing to pay, – non-payers, it First go also shift school, is World adults Outside or plan, this of on many who for or before top

that’s great mean question. I a Yes.

about far that you is in to aged a it. they think Duolingo One X have is of of much money going age working I much not kind the we there We a is have. much terms That’s kind kids think pay I to interesting basically thing our on seen stories of get etcetera. things – we or how tells don’t But that have so is somebody that of don’t is literally distributions, of years really from. age whether Duolingo main much so And user wide. base just XXX using adult pretty it’s the –

you. Thank Great.

question next ahead. Securities. from Boone Andrew comes Please JMP go Our of

and thanks my guys afternoon for Good Two, taking question. please.

additional And the talk on think broadly Is else is anything call about Justin’s brings. increasing engagement you social there help anything Is talk else? variants just to the and Following just in Omicron questions, offered impact or up platform? guys question of the to growth or out much. about understand January. reopening? metrics December two, the just as on Can us anything And then you so that that, usage, compelling there is from benefits there? interaction we in messages. And that Thanks congratulatory number some the think about about

Thank you the Great, for Andrew. questions.

Okay.

social I one letter, social, – am most have is of social I I excited mean, shareholder in about. the the things So as said

working We earnest year. over have – started last we on really been social in roughly the

Duolingo, team where We well, is done each they congratulatory have And team. messages. have added high-performing send basically they is That people layer other have a a it. behind – a very behind what follow and can social

like growth in We have active At said of congratulatory XX%. on the of it’s to the mean a we each shareholder our messages sending had other. about our By X% that. I have daily users now, had letter. about probably of lot year, I beginning were

have least that learners follow users number XX%. – people least follow that is also number of active We now at of other Duolingo at daily the on three the

are increasing the a than to basically do we social is And going with much were more by letting that way even we That’s ago. a really happening. So, connections. their more to we continue continue going app year people are

it our gets people are better, subscription. app. on also spend more increasing retain So come it and – they more things exactly of KPIs. actually are them do more be can’t things that the time more to be the back we we letting And have are that fraction It and – to things, tell people are gets our what we And use – really so it’s of to pay of seen their because moves going that, actually different people with but friends. increases time lot you the these also days, spending because to It app retention. a also testing are to going I for

So, an component impact is KPIs. the really the social on having

like network really has that other component it is thing I The social the about that effects.

something just social, that’s proud Omicron. you And the use of that that. so – that Honestly, that gets you it’s asked also that So, much are that’s people in your friends then for – now we better Duolingo, then see about of. we didn’t more also are something And it. asked Duolingo very

or did COVID. COVID. – the in For get of was something of boom like something was first whenever an there that that, there humongous us – wave not much like kind unless there We strict are we of products there a when is see quadruple we boom XXXX, lockdowns, or some are a After impact. of don’t really

back the time, saw for happened before whole we back is three were COVID we growing world an So, back our is since COVID, in this are of opened months, then, observing what saw, and grow an to the did are growth just slight basically, when has quarter, months COVID and then And growing the of for of rates. first we now growth And now rate DAUs to Then rates. in have our organically are – basically a example, and growth the is up. we fourth after we that, what this see because rate you to acceleration pre-COVID been why we increase. growth came pre-COVID MAUs decrease we this two going

Thank Great. you.

Please next Instructions] Mahaney question from ahead. our go of will Evercore [Operator Mark And ISI. come

Thanks. Two questions, please.

XXX,XXX earlier, like seem MAUs. actually hear in decline. quarter, you the last December covered you over a didn’t maybe First, a number, I That had two added the you it big the – sequential quarters,

any we just color is just on that thinking to XXX,XXX? unusual talk how about just is quarter Like shouldn’t years, that rely those was So, growth prior And something behind caused – so too MAU in it’s forward the through want small, maybe extrapolate there because that what was to the that? the and there be but just strong? going company we

question. a I great a are that’s is well. mean there of lot really working that things just Yes,

fourth but things quarter think is unique One quarter, every going are year-end the campaign. think we of review to to see I in our that fourth forward, the is it going I

of like we they December that then Italian app idea there this that to kind sharing feel of like people discovered feel you good, are your It’s share they year you something. basically telling something that. of a couple around, turns they over a whole here or that year, a thing. good learned and how because that out, or call German this everybody is learned that thing It years, that going lot in the the shows you, the tells up where is is did XXth, last it, So, is

we got because trending out became put we XXX Duolingo Twitter, really topic millions a of or shares that there, when on it media. So, social literally – Duolingo top XX millions Twitter Hashtag, We a of trending became topic something in and on that.

there. seeing So, quarter we to be that thing probably that’s a fourth are going specific

marketing we worked was we have well for channel. Again, marketing the is salary other we I to it lot basically Another strong, so completely thing, of our that spend. are brand the the any not good with a this no this of in than TikTok a us lot really a doing essentially and And is and – has really is have in TikTok. fourth a our because TikTok, quarter mean unpaid really mascot people stuff with marketing who people this. our done of have we are appeals thing spending

We interactions all over of brands. are I know, the million video far XXX have gotten probably on that brand TikTok views most as the TikTok. on we And gets as

thing been continuous another that’s to improvement. helps thing course, has which is the I us, that good. in So, always And pretty product that, think that of addition just

extrapolation, historically, growth around XX% as was minus. what seeing. of pre-COVID and the Mark, And go our or said had Okay. are kind that’s plus just we growth and asked And XX% rate anywhere forward, was on between DAU XX% about rate you about we our MAU

don’t COVID and was growth model we because is at And any then some course the so those but not spikes. believe of play year. And as seasonality only are probably the But as not we historical at seasonality forward, we bit reason we also the levels back XXXX of to little the you growth. think rates. XXXX have The of back seasonality throughout to about normal, the well. our are a think

ask if I And on math the Okay. question product. more could one

this was a joke. Wall Luis, of what elementary we going it I is? market product are That is a So mean Are doing the be out? when doing us for just just, doing just Are math? math sophisticated who Street we thing calculus? give like to basic tease we But this comes math?

it kidding, is that’s it no, a ruler. what is. not slide am Mark, I

that’s of what do. an So, it’s app, we course,

with to school going elementary are start We math.

test because I So, day. of tell fractions, actually, app you. gotten single I the think I day it I every have very single every – will good use

math. So, elementary school it’s basically

could I the friend, If I it, a that. school of Okay. to just behalf appreciate before do when launch that’s put asking it on if are I September. it just am but if a begins. you could, going in request, you

may third you a grade that of behalf On Okay. know. Got it.

Yes. Thank you.

like This Ahn concludes to over turn von to the for our remarks. question-and-answer Luis any conference back session. closing I would

much. talk I in questions quarter quarter. the Thank you want next we we just everybody. yes, say of to to very hopefully, great great will had, that we proud really are very and And

The And presentation. conference attending for may disconnect. today’s concluded. has now Thank you you now