Hello,
I was reading through the Duolingo Q1 sec filing report: https://investors.duolingo.com/node/8596/html
What I understand is:
- They had 115m revenue (32m spent on cost of revenues), spent 45m on R&D, 16m on marketing, 30m on general & admin
- They had a 2.6m net loss
- They have 650 employees
- They had a gain of 33m in cash flow
They have one utility (educational, learn languages) app, for those unfamiliar.
What I don't understand:
- How do you manage to spend (R&D and administrative) 75m on 650 employees
- How can you get to a 2.6m loss, but an increase in cash flow of 32m (up to 641m in cash and cash equivalents)
My best explanation for the second one is that it's basically increase in their stock price?
But their expenses on one utility app, to get to a 2.6m loss, is baffling? It's 650 people working on one app, get 115m in revenue per quarter and you manage to spend it all?
My best guess is that they spent a lot into trying to get their monetisation in order, since the app was not really monetising until recently: https://techcrunch.com/2021/05/03/duolingo-ec1-monetization/
Could someone enlighten me?
Thank you. 🙂
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