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Von Ahn says that will climb to $86 million in 2019 and $160 million in 2020 as more users sign on and pay for the premium app, which will attract them with new features. Only 1.75% of Duolingo’s users pay for its ad-free version ($84 a year), but because its base is so huge, revenue hit $36 million last year. Another competitor, Berlin-based Babbel, says its revenue of more than $115 million comes from the $85-a-year subscription fee it charges its million-plus subscribers. Venture capitalists have pumped in $108 million, ballooning Duolingo’s valuation to $700 million in 2017, $150 million more than the market capitalization of Rosetta Stone, its 27-year-old publicly traded rival.Īlong with teaching more languages (Rosetta Stone offers 25), Duolingo attracts users because its basic ad-supported version is free, compared with the $120 a year Rosetta Stone charges its 500,000 subscribers.
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Seven years after its launch, it has nearly 30 million active monthly users, according to its own figures. À la Wikipedia, Duolingo enlists volunteers to help create its more obscure courses. They include little-spoken tongues like Hawaiian, Navajo and Gaelic and the fictional language High Valyrian from the HBO blockbuster Game of Thrones (1.2 million users are studying it). Later he sold two inventions to Google, netting more than $20 million.ĭuolingo already offers more languages than its competitors do, 36 at last count. When he was a 21-year-old grad student he gave the world CAPTCHA-better known to billions of internet users as those annoying squiggly letters that you have to transcribe to prove that you are not a bot.
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Von Ahn certainly knows how to execute on a grand scale. But it’s a highly fragmented market with dozens of players scattered around the globe, and it’s begging for a dominant one. Digital language-learning generates $6 billion in revenue, and that number is projected to rise to $8.7 billion by 2025.
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More than 2 billion people worldwide are studying a foreign language, and increasingly they are doing it online. “That is for me really special and pretty big.”ĭuolingo has lots of room to grow bigger still. “The moment I felt proudest was when I realized, Wow, the richest man in the world is using the same system as the lowest people on the economic scale,” says Von Ahn. Created seven years ago by MacArthur “genius” computer geek Luis von Ahn, 40, Duolingo has hooked everyone from Bill Gates, Khloe Kardashian and Jack Dorsey to Syrian refugees in Turkey.