jakiro
Focus on
① Multi -neighboring countries are one of the most opportunities to use AI to develop business.The company’s graduate papers co -founder are about how AI helps humans.Duo neighbor may be born for this opportunity.
② It is difficult to learn from people, because games, social media, etc. have never seized the attention of users all the time. This is like “you want people to eat broccoli, but there is the most delicious desserts in history next to it.”Let broccoli taste like desserts. “
③ It took 8 years to reach 1 million DAU, and it took 21 months from 1 million to 3 million. In this process, AI capabilities are indispensable.In the field of technology -driven education, adaptive learning and personalized content with AI are becoming normal.Duo neighboring countries choose to actively integrate AI functions and make effective progress, indicating that it can not only keep up with the current trend, but also want to take the initiative to participate and shape the future of education.
Dort -neighboring was founded in 2011 by SEVERIN HACKER and Luis Von Ah, a student of Carnegie Mellon University.As American immigrants from different worlds and cultures, they understand the importance and necessity of learning different languages, which has prompted them to establish neighboring countries.With the gamified learning experience, strong brand effects, various beneficial marketing strategies, and AI assistance, the stock price of neighboring countries increased by more than 210%in 2023.
Duo neighboring countries are not only an innovative language learning platform, but also one of the healthiest and most directed educational companies in revenue.Its revenue mainly comes from four parts: subscription, advertising, English test and other businesses.
The subscription business charges the membership of the Super Duolingo, provides a variety of learning and gaming functions, and exempts advertisements. It is its most important performance driving force; the advertising business charges advertisers who are willing to put advertisements on the APP; the English test business charges candidates to candidates.(This test can be used for study abroad applications and visa application, etc., and has been recognized by more than 4,500 colleges and universities in the world); other businesses include sales of virtual commodities in the application.
Most of the revenue of Multi -neighboring countries comes from subscribing business, and paid users are concentrated in wealthy countries such as the United States and Canada.LUIS’s point of view is: “This is a form of wealth re -distribution. The basic idea of Multi -neighboring countries is to find the rich people to pay for everyone’s education costs.”
As a head language learning platform, many neighboring countries have maintained a beautiful growth curve since listing, and relying on the broad language learning market, unique marketing strategies and strong AI blessing to lead the AI education track (such as interested in generating the AI trackOther star companies, click to view).It actively integrates new technologies such as AI to improve its learning experience, and is also trying to gradually expand business to mathematics and music courses.In 2023, Duozhuo took the lead in accessing GPT4 and launched Duolingo Max subscription services.Under the blessing of AI, the growth trend of subscription revenue in multi -neighboring countries is very rapid.
1. Four elements of multi -neighboring countries
1) The huge language learning market provides development soil
Duo neighbor is not the first listed company aiming at the language learning market.As early as 2009, Rosetta Stone of Language Learning Software Company completed the IPO and raised over 100 million US dollars. At that time, the company’s annual revenue exceeded US $ 209 million.However, from the perspective of the founders of neighboring countries, Rosetta Stone only targets a small part of the language learning market and collects too much fee to them.This is not a good business at all.
Duo neighbor found a way to cut into the market more cleverly than Rosetta Stone. They want to help those who want to learn new languages but cannot pay for software to learn software.Google Trends and the development of the two companies have proved the eyes of the founders of Duoduo:
>
The popularity of neighboring countries comes from its interesting learning tools and a language treasure.It is completely free and provided for more than 40 language teaching courses. From large language, such as English, French, Japanese, to small -language and endangered types such as Wales and Navati, everything is available.Duo neighbor also offers a variety of courses and exercises, allowing users to easily master vocabulary, grammar, hearing and reading skills.
The huge language learning market space provides broad space for the development of neighboring countries.According to statistics, by 2023, about 1.2 billion people around the world are learning a foreign language.In 2023, there were 83.1 million people in the neighboring country, and the penetration rate of global language learning people was close to 7%.Among them, 5.8 million paid users, the penetration rate of global language learning people is only 0.48%.Therefore, many neighboring countries can further expand in the future to attract more new users, continue to increase user payment rates inward, and still have a huge space for market share.
On the other hand, as of 2022, the global online language learning market is as high as US $ 20.34 billion, and it is expected to reach $ 89.53 billion in 2031 with a 17.9%CAGR.Because the rate of revenue in the subscription business of multi -neighboring countries is much higher than 17.9%per quarter, it is expected to occupy a higher market share in the next few years.
2) Gaming learning experience greatly promotes user growth
Learning products or learning itself, the most important thing is to continue to invest in users.Duo neighbor’s always thought is to make the learning process like playing games, so that users can always be immersed in it.It can be said that the success of multi -neighboring countries is to grasp the essence of learning.
Duo neighbor’s way of learning is very interesting.Users can complete various tasks and challenges to improve language skills.In addition, it also has a personalized learning path and progress tracking function to help formulate learning plans and track progress at all times.
It is difficult to learn from people, because games, social media, and other attention to the user’s attention all the time. This is like “you want people to eat broccoli, but there are the most delicious desserts ever.” Luis and the team decided to “let letBroccoli tastes like desserts. “They used a lot of skills for this.
Another example is the winning streak mechanism, which means that you continue to learn the number of days, this function is very significant.In this way, in order to lose their own winning streak, users will open a multi -neighboring country every day.According to disclosure, more than 3 million daily live users have passed the card for more than 365 days.
In addition, multi -neighboring countries have always tried to make users willing to come back through clever and humorous “notifications”.At present, in terms of news notifications, many neighboring countries are unique, and a lot of users are willing to spread and two innovations based on the “recall notice” in social media, which has given the products a great recognition and praise.
Duo neighbor has successfully created an interesting language learning experience.They encourage users to be more proactive (rather than being regarded as suffering), which is directly reflected in the increase in the number of users and the improvement of daily activities and monthly activities.The free mode allows users to easily use most of the content and services, which makes learning easier and effectively inspire some users to upgrade to the paid version as required.The significant growth of paid subscribers shows that once users recognize the value provided by the platform, they are willing to invest in education.
Based on users’ recognition of products, Multi -neighboring countries have experienced dual growth of strong users and revenue.In 2023Q3, DAU DAU jumped from 14.9 million in the same period last year to 24.2 million, an increase of 63%.In addition, MAU increased by 47% year -on -year to 83.1 million.It is also important that paid users increased by 60% to 5.8 million.This proves the ability to effectively attract users and implement profitability strategies.
3) With the help of AI to continuously optimize the user experience and participation
Duo neighbor’s high -speed growth in recent quarters is mainly due to the continuous application of new technologies such as AI.其借助GPT4 等大模型能力实时分析用户表现和偏好，从而生成高度定制化的学习路径；此外，自然语言处理等AI 功能可以提供实时对话练习和即时反馈，有效增加互动性进而提高用户参与度和Store.
AI has a lot of martial arts in multi -neighboring APP.For example, the accuracy rate of user answers is too difficult, and it may give up using APP. If the accuracy rate is higher than 80%, it will feel too simple and not learned, so it may also give up.Therefore, it is necessary to ensure that the problem is difficult to ensure the difficulty of the problem, so that the accuracy rate of users is about 80%, and AI just comes in handy.
For another example, there is a very complicated AI system in multi -neighboring countries, which will choose when to send notifications and what to issue.When is the most effective notification?The user lasts the 24h of the product for the last time.The original words of LUIS are: “The reason is simple. If you are free at 3 pm yesterday, it should be free at 3 pm.
In October 2020, the multi -neighboring country brought a self -research function -Birdbrain, which increased the adaptation of personalized courses.The Birdbrain model aims to provide a more personalized learning system, which corresponds to providing difficulty matching language materials according to the language mastery of learners.As the number of exercises completed by learners, Birdbrain can better understand the level of mastery of learners, and then generate the appropriate difficulty to help learners improve their learning results more efficiently.
Since then, the GPT model has never missed the hot of the GPT model.In 2021, multi -neighboring countries introduced GPT3 to generate language practice content, which is smarter than Birdbrain.As long as artificial input instructions and requirements are required, GPT3 can generate the content of language practice content that meets the requirements.In March 2023, Duozi announced its access to GPT-4 and launched Duolingo Max subscription services, which contains a new AI function.The logic behind Duo neighboring to launch these functions is to realize the teaching effect similar to real people 1 to 1 through products.Roleplay supports learners and AI to simulate interactive dialogue in certain life scenarios. In addition, users can also chat with DUO (neighboring owl mascot) to obtain simple interpretations of the correct or error cause and more examples.
It took 8 years to reach 1 million DAU, and it took 21 months from 1 million to 3 million. It can be said that the AI capability in this process is indispensable.At present, in the field of technology -driven education, adaptive learning and personalized content are becoming the norm with the help of AI.Duo neighboring countries choose to actively integrate AI functions and make effective progress, indicating that it can not only keep up with the current trend, but also want to take the initiative to participate and shape the future of education.
4) Marketing strategies of “social priority” and “adapt to local conditions”
“People want to entertain, not to be sold.” This is the experience of the marketing team of Duoduo. Duo Narcons have managed to remind users that this is a language learning application, but it is also very interesting.Multi -neighboring countries chose to let DUO (owl mascot of Multi -neighboring countries) participated in the network trend and even became Internet celebrities.
In addition, although DUO is very popular all over the world, many neighbors have found that Lili with purple hair is loved by many Chinese teenagers, so the fan content about Lily has been widely spread on Chinese social media.Before, many neighboring countries had DUO peripheral products, and in the future Lily’s plush toys and stickers will also appear.
Multi-neighboring countries adopt a “social-firs” marketing strategy.Through popular culture and social media incidents, let fans and users become brand communication ambassadors, let them actively share experiences, and participate in social content of neighboring countries.The marketing team will also create a multi -neighboring expression package and content that users like, which also brings considerable exposure to many neighboring countries.
Currently, the relevant content created by users on TIKTOK and YouTube is far more than the content released by the neighbors. This “social priority” marketing strategy is very effective and the cost is not high. It is also accurate to reach the crowd. Multi -neighboring countries have become TIKTOKOne of the most watched brands.As of 2023Q2 ’s social media exposure increased by 150%year -on -year, which has promoted the development of multi -neighboring brand brand development and word -of -mouth users.
2.The current status and future potential of Multi -neighboring countries
In recent years, thanks to the continuous expansion of the number of users and efficient payment, the revenue of Multi -neighboring countries has increased from US $ 71 million in 2019 to US $ 369 million in 2022, CAGR reached 50.99%, and revenue in the first three quarters of 2023$ 381 million, an increase of 43%year -on -year.
Although Multi -neighboring countries have been in a loss in recent years, the net loss has reached $ 60 million due to multiple factors such as stock salary and employee increase and equipment expansion in 2022.However, the net profit in the first three quarters of 2023 has reached 3.95 million US dollars. The net loss of 45.644 million US dollars in the same period year -on -year has made great progress. Neighboring countries have achieved profitability for two consecutive quarters.
On November 8, 2023, Duo neighboring countries announced the 2023Q3 performance. MAU increased by 47% year -on -year to 83.1 million, and DAU increased by 63% year -on -year to 24.2 million.Compared with the second quarter, MAU and DAU have increased significantly.
From the perspective of paid users’ conversion rate, Multi -neighboring 2023Q3 paid users reached 5.8 million, an increase of 60%year -on -year.In the first half of 2023, the launch of the new product Duolingo Max, which is aimed for membership AI functions, is effectively improving the user experience and teaching quality, which is expected to further increase the user conversion rate and customer unit price of fees.
>
In terms of revenue and profits, Multi -neighboring countries’ 2023Q3 revenue revenue of US $ 137.6 million, an increase of 43%year -on -year.The net profit totaled 2.8 million US dollars, a net loss of 18.4 million US dollars in the same period year -on -year.In the first three quarters of 2023, the subscription business revenue was 287 million US dollars, an increase of 47%year -on -year, accounting for 75%of the total revenue, accounting for an increase year by year; advertising business revenue has been around 30 million US dollars in recent years, and the proportion of revenue continues to decrease;English test revenue was 30 million US dollars, an increase of 25%year -on -year. According to the current growth rate of 2024, this revenue is expected to exceed advertising, becoming the company’s second largest source of revenue.
In addition, the development potential of multi-neighboring countries is also reflected in-R & D expenses have always accounted for the largest proportion in the composition of the company’s expenses. The company’s R & D cost rate of the company in 2021-2022 exceeded 40%, but the marketing cost rate continued to decline.Thanks to the social media marketing strategies of neighboring countries, they still maintain a good market exposure and user stickiness while reducing marketing costs.
The co -founder and CEO LUIS of Duo neighborhood said that the United States is the main source of income, and the United Kingdom and Germany have also made important contributions to income.China has become the seventh largest market in multi -neighboring countries and one of the fastest -growing international markets.In response to the Chinese market, Multi -neighboring countries launched the first dialect course in 2022 -Cantonese courses, and by July 2023, it has attracted nearly 3 million users.
In addition, Luis announced at the third quarter financial report conference calling that it will conduct business expansion in the field of mathematics and music courses, launch related courses and improve the educational product matrix.Duo neighboring countries hope to expand the product experience and AI capabilities of language learning to more new areas. This measure is expected to consolidate the status of Duo neighbor as an educational resource center, rather than just focusing on language.
3..2023Q4 Performance Outlook
The market predicts that benefiting from the effectiveness of social marketing strategies and the continuous improvement of AI technologies on user experience, users of neighboring countries, revenue, and profit growth will continue the previous growth rate. It is expected that the revenue in the fourth quarter will reach 148 million US dollars, which is year -on -year.The increase of 42.95%; the income per share will reach $ 0.15, an increase of 142.56%year -on -year.
In this financial report, investors will focus on the growth rate of the number of DAUs, MAUs, and paid households, as well as guidelines for income growth and profitability of the next quarter and next fiscal year.It is expected that the probability of multi-neighboring countries will continue the current trend in the next quarter. A number of important data (income, monthly work, and paid users) will increase by 30%-60%year-on-year.In view of the third quarter financial report conference call, management announced that Duo neighbors will expand to mathematics and music, and the market will also pay attention to the substantial progress of relevant new businesses.
According to statistics, in the past 8 quarter financial reports, the revenue and income per share of the neighboring countries have exceeded expectations.The stock price of the 7th quarter of these eight quarters rose, with a increase of 4%-34%.
4. 4..in conclusion
The Rockflow Investment and Research Team has long seen the growth prospects of many neighboring countries.With a gamified learning experience, a solid business model and a commitment to supporting education from all over the world, many neighboring countries are expected to benefit from the development of AI for a long time.
Coincidentally, at the 2023Q1 financial report conference call, Luis said: “I am very lucky to lead the leaders of neighboring countries to become one of the most opportunities to use AI to develop rapidly.” And his previous graduate papers are exactly studying about about research on about about research.How to help humans through multiple dimensions.
