Shares of Duolingo (DUOL) - Get Duolingo, Inc. Class A Report, a language learning service, rose Thursday after the company reported a third quarter net loss that was narrower than expected on revenue that topped estimates.
The Pittsburgh-based company reported a net loss of 98 cents per share on revenue of $63.6 million, a 40% year over year increase. Analysts were expecting a loss of $1.02 per share on revenue $60.5 million.
"Our performance during the third quarter was exceptional. We achieved record bookings and a record number of paid subscribers, with monthly and daily users also reaching all-time highs," said CEO and co-founder Luis von Ahn.
The company reported a 57% increase in total bookings while subscription bookings increase 64% year over year. Paid subscribers totaled 2.2 million at the end of the quarter, a 49% year over year increase.
The company reported 41.7 million monthly active users and 9.8 million daily active users, both all-time highs for the company.
Duolingo's gross margin improved slightly year over year to 71.6% from 71.1% driven by reduced payment processing fees on subscriptions and higher advertising revenue per daily active user.
Operating expenses more than doubled to $38.9 million.
Duolingo debuted in July after pricing its initial public offering at $102 per share.
Duolingo offered 5.1 million shares of Class A common stock and raised about $520 million in its debut. The company was valued above $3.4 billion following its IPO.
Shares of Duolingo jumped more than 7% in early market trading before paring gains. At last check, the stock was up 2.61% to $153.10 at last check.