How Duolingo is Redefining Growth in the EdTech Space

Key Takeaways:

• Duolingo's downloads surged by nearly 8mn YoY between June and September 2024, while mobile revenue rose by ~30%. Notably, during the same period, most of Duolingo's competitors in the language learning app cohort — including Babbel, and Busuu — experienced muted download growth

  • France, Mexico, Spain, and South Korea were among the markets with the steepest increases in downloads, indicating that Duolingo has driven growth across both mature and niche markets

• Duolingo’s download growth has been driven, in part, by increasing brand awareness. In France, one of Duolingo’s top 10 markets by downloads YTD in 2024, the app’s iPhone downloads linked to 'Duolingo'-related keywords surpassed 70K in 3Q24, marking a 150% increase compared to 3Q21

• While traditionally emphasizing organic growth to build its user base, Duolingo has recently increased its advertising investments across select markets. Notably, ad spend has risen on platforms such as YouTube, Instagram, and Facebook, with YouTube spend rising strongly in Mexico since the start of 2024

• Duolingo's increased advertising spend had an immediate and measurable impact on paid downloads across various markets. For example, in France, paid downloads increased by ~20% YoY in 3Q24, while the app’s advertising spend increased roughly 30x

  • Meanwhile, in South Korea, the app’s paid downloads rose by nearly 500% YoY in 3Q24

• Despite an increase in ad investment, organic marketing remains a key growth driver for Duolingo. A standout example is its explosive growth on TikTok, where followers soared to over 13mn as of Nov’24, up from just over 8mn in Nov’23, significantly surpassing Busuu (~800 in Nov’24) and Babbel (~400K)

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