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Duolingo IPO Terms Reportedly Value Language App at $3.4B

Duolingo in its IPO expects to sell 5.1 million shares at $85 to $95 each. That equates to an offering of $434 million to $485 million.

Duolingo, a popular language-learning platform, outlined the terms of its initial public offering in a Monday Securities and Exchange Commission filing.

The IPO consists 5.1 million shares, with 1.4 million of them coming from selling holders. 

The share price is targeted at $85 to $95. That equates to an offering of $433.5 million to $484.5 million.

The offering values Duolingo at up to $3.4 billion, Reuters reports. The company last garnered a valuation of $2.4 billion in November, following a $35 million investment from Durable Capital Partners and General Atlantic.

Duolingo plans to trade on the Nasdaq exchange with the ticker DUOL.

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The Pittsburgh company offers 95 courses in 38 languages. It was founded in August 2011 by two engineers, Luis von Ahn and Severin Hacker, who met at Carnegie Mellon University.

Duolingo employs 400. It has about 40 million monthly active users. Its programs are free for users. A premium paid version, taken up by some 5% of its users, provides additional features.

For the first quarter Duolingo’s net loss widened to $13.5 million, or $1.04 a share, from $2.2 million, or 18 cents a share, in the year-earlier quarter. Revenue nearly doubled to $55.4 million from $28.1 million.

For all of 2020, the loss was $1.24 a share against a loss of $1.10 in 2019. Revenue more than doubled to $161.7 million from $70.8 million.

Most of Duolingo’s business comes through apps. Last year, Duolingo took in 51% of its revenue from Apple’s  (AAPL) - Get Apple Inc. (AAPL) Report App Store and 19% from Alphabet's Google  (GOOGL) - Get Alphabet Inc. Class A Report Play Store.