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Duolingo Inc. shares fell as much as 22% on February 27 after the company said its push to gain subscribers would result in slower earnings growth and narrower profit margins in the near term.
Duolingo said it will increase investment in artificial intelligence and accept some reduction in monetization to accelerate user growth and engagement. The company’s stated goal is to double its current number of daily active users to 100 million by 2028.
Chief Executive Officer Luis von Ahn said in a letter to shareholders that the short-term impact would be weaker financial performance. “The short-term implication is that this year will see slower bookings growth and lower profitability,” he said.
The company reported that daily active users rose 30% in the quarter from a year earlier, but the growth rate was the slowest in four years.
Duolingo expects first-quarter adjusted EBITDA of $73.6 million, which would trail analyst estimates of $84 million.

Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…