Duolingo, Inc. (NASDAQ:DUOL) Q3 2022 Earnings Conference Call November 10, 2022 5:30 PM ET
Company Participants
Deborah Belevan - VP, IR
Luis von Ahn - Co-founder, CEO and Chairman
Matthew Skaruppa - CFO
Conference Call Participants
Andrew Boone - JMP Securities
Ralph Schackart - William Blair
Ryan MacDonald - Needham
Mario Lu - Barclays
Mark Mahaney - Evercore
Eric Sheridan - Goldman Sachs
Aaron Kessler - Raymond James
Nat Schindler - Bank of America
Arvind Ramnani - Piper Sandler
Deborah Belevan
Good afternoon and welcome to Duolingo's Third Quarter 2022 Earnings Webcast. All attendees are in a listen-only mode. Today after market close, we released our quarterly shareholder letter with our Q3 results and commentary which you can find on our IR website at investors.duolingo.com.
On today's call we have Luis von Ahn, our Co-founder and CEO; Matt Skaruppa, our CFO. They'll begin with some brief remarks before opening the call to questions. [Operator Instructions] Please note that this event is being recorded.
Just a reminder that we will make forward-looking statements regarding future events and financial performance, which are subject to material risks and uncertainties. Some of these risks have been set forth in the risk factors of our filings with the SEC.
These forward-looking statements are based on assumptions that we believe to be reasonable as of today, and we have no obligation to update these statements as a result of new information or future events.
And additionally, we will present both GAAP and non-GAAP financial measures on today's call. These non-GAAP measures are not intended to be considered in isolation from, a substitute for or superior to our GAAP results, and we encourage you to consider all measures when analyzing our performance.
And with that, I will turn the call over to Luis.
Luis von Ahn
Thank you, Debbie, and welcome, everyone. I'm pleased to report that we delivered another strong quarter, continuing the momentum we've seen all year. We saw accelerating user growth with daily active users increasing 51% year-over-year. We also saw bookings grow 41% year-over-year, which came from growth in conversion year-over-year and from steady retention rates.
We're not seeing any signs of consumer softness in our subscription metrics and as a result, we're raising our full year guidance again. I want to spend a little more time talking about our user growth because it's so important for our business.
Daily and monthly active users continue to accelerate for the fifth quarter in a row, reaching all-time highs in this third quarter. Of course, we can't expect this acceleration to go on forever, but the trend this year is evidence that our focus on organic growth, coupled with modest and efficient marketing spend is an effective strategy. This is why we continue to invest in R&D to make our products even more fun and engaging, which is what drives word-of-mouth growth.