Q3 2022 Duolingo Inc Earnings Call
Today, Iap's oriented purchases only make up about 5% of revenues up from 3% last year, but we believe we have plenty of room to increase this as we experiment with new features that encourage learners to make our card purchases.
Overall, we continue to maintain our financial discipline and manage our cost prudently, while our head count continues to grow we have never gone nuts on hiring and because of that we don't have to implement cost controls like layoffs are hiring freezes in order to achieve profitability.
As I reflect on 2022, it's been a stellar three quarters for our business, even if the macro situation has gotten more uncertain.
In the fourth quarter is a busy and fun quarter for US we have just launched our new home screen to most users launched our new map.
Okay.
Okay.
In late December I'm excited about these efforts and look forward to all the energy and innovation 11 year brings and with that I'll turn it over to Matt to talk about our financial outlook.
Thanks, Luis we.
We had another exceptional quarter outperforming our expectations on the top line and on profitability and given our outperformance we are raising our full year guidance.
During the third quarter, we delivered total bookings growth of 41% year over year and as a reminder, over half of our revenue comes from outside the U S. So on a constant.
Okay.
Sure.
Currency Bay is bookings growth would've been nearly 50%.
So our guidance for Q4, 2022 we are guiding to $112 million to $115 million in total bookings.
<unk> $98 million to $101 million in revenue and an adjusted EBITDA of negative three to breakeven.
For the full year 2022, we are increasing our guidance to $4 <unk> to $417 million in total bookings.
$364 million to $367 million in revenue.
And then adjusted EBITDA positive seven.
Yes.
Yes.
And Ryan.
Our full year bookings guidance reflects 41% to 42% year over a gross up from 37% to 39% year of year growth, we guided to on our last earnings call.
Our updated guidance assumes current foreign exchange rates and note that every 1% increase in the value of the dollar versus our basket of currencies has about a half a million dollar impact on bookings in the final quarter of the year.
As Luis mentioned above we continue to be disciplined in how we manage our expenses in the fourth.
Okay.
We expect non-GAAP R&D will increase as a percentage of revenue as we continued to invest in making our products more fun engaging and effective or.
Our non-GAAP sales and marketing expense as a percentage of revenue is expected to increase slightly and non-GAAP G&A should stay roughly flat.
For the full year, we expect to achieve approximately two to three points of operating leverage compared to last year.
We ended Q3 with approximately $47 6 million fully diluted shares outstanding using the average Q3 closing price and we expect to end the year with approximately.
Yeah.
Three.
Sequentially from.
From equity issuance, we will provide our full year 2000, <unk> guidance on our fourth quarter's call, but in the meantime, I would like to remind everyone that we believe we are still early in our monetization efforts and believe we have strong top line growth ahead of us.
We will continue to invest in R&D to drive user growth monetization and we will invest more in early stage efforts like the dwelling or English test duolingo, ABC and dwelling go math.
But even as we do that we will stay focused on making measurable progress each year to our long term profitability target of 30% to 35% adjusted EBITDA.
Okay.
Right.
With that I'll turn it back to Louis.
Very funny Lily.
I know you're optimistic.
Okay.
Okay.
Where I was Oh, yes.
Before we get into Q&A I'd like to thank the entire team who continue to deliver excellence in everything they do creating engaging apps that are fun and effective helping our learners to reach their goals on converting more subscribers.
Oh well.
So at least support our mission and now we'd be happy to take your questions I'll turn it back to Debbie to manage the queue alright, Thanks, Louise and as I mentioned earlier, if you have a question about the raised fancy chair.
The first question comes from Andrew Byrne at JMP Securities Go ahead Andrew.
Yeah.
Hi, guys. Thanks, so much for taking my question.
I'd like to hear a localized pricing booking.
Bookings on our numbers first.
Yeah.
And year over year bookings per sub sorry, it was down 16% year over year can you just break that out versus FX versus the shift to localized pricing and just update us in terms of what you guys are seeing.
You called that out in terms of conversion benefits for Andrew and then secondly, as we think about profitability going forward, Matt you mentioned that senior in your remarks in terms of driving towards those long term margins. Some way you can help us think about that though is just theres been a greater shift towards a focus on profitability. How you guys are thinking about just expanding margins and more.
Ah study.
Okay.
Yeah.
Thanks, so much yes.
Renewal pricing just to remind everyone. We.
We will now localized pricing.
And last year, but really more broadly in Q2 of this year because.
Because we saw it as a first step towards better international monetization getting the pricing more akin to what the purchasing power in local markets.
And when we did that we were testing that thoroughly for a long period of time to make sure that the net impact of lowering the price.
With an increase in both.
Okay.
Mhm.
<unk>.
And ultimately become a lifetime values confident we rolled those out but that was true. So while that probably has an impact on our preferred metric of pricing, which is revenue per subscriber not bookings.
The ultimate impact will be a bigger LTV over time.
This past quarter to your point R. R.
Our bookings per quarter, and then flowing through to revenue was impacted by FX. So that was another headwind to revenue per subscriber.
Uh huh.
Hum.
Wow.
On AD spend that we're making right choices for the long run up here the business, even if prices go down in any particular quarter has your thinking around profitability.
The good news is it's actually not a shift in how we run the business the business is.
For forever been run disciplined so that we weren't burning through cash and so there really is no change to the the fact of the matter is we were going to continue doing keys to increase revenue faster than expenses, though operating levers will flow through to the bottom line will become.
Okay.
Okay.
Okay.
Probably at the time.
Thank you.
Alright, Thanks, Andrew and your next question comes from Bob Checker at William Blair.
Good evening. Thanks for taking my question first question on macro Louis I know you said, you haven't seen them or at least broadly, but just curious if youre seeing them, even on the edges or any small signals and I guess, maybe give us a sense of sort of the durability and the use case for the product that might be able to.
Okay.
Well continue to help it grow should there be Stephanie macro headwinds.
Yes. So of course, we're aware of the macro situations. So we've been looking for our subscription product. We just havent seen anything even if you see geographically I mean, we just haven't seen any softness in the numbers like I said in terms of AD revenue, we've seen that but it's small for us. So it's our main we're mainly a subscription product and we just have seen no no.
Softness.
And we just feel pretty good about it in terms of unlike Oxford.
Hello.
Right.
So in terms of.
A pretty strong user growth and that usually will convert over the next several quarters will convert and pretty strong bookings growth. So so far so good I mean of course, you know like I've been saying also and in every single call I don't know what will happen in terms of if there is a major recession or anything because we are as a company have never gone through a major recession, but so far we just havent seen any softness.
Alright, and then in terms of in App purchases. It seems like you're having some success there with I think James you called out in the shareholder letter maybe against the sensors, that's sort of the.
Okay.
Hmm.
Yes.
Our focus for the company are realizing more of additional product just give us a sense there would be helpful. Thank you. Yeah. That's that's a great question. We are spending more effort on in App purchases, that's something that we really are.
It wasn't until recently that we had a team really focused on that and when we're growing at this point were about 5% of our revenues are in our purchases.
Sometimes people ask us how big can that be as a fraction of our revenue on the honest answer is I don't know, but if you look at comparable something like.
Okay. Okay.
Yes.
So we think theres a lot of room to grow from 5%.
The main way in which we're going to be doing in our purchases through this gem economy, which is a virtual card currency for duolingo and mainly we're going to be building more and more features that encourage users. We start usually gamify features that encourage users to spend their gyms and youre going to see us building a lot more of those over the next while over the next several years.
Alright, Thanks, guys I appreciate it.
Thank you.
Thanks, and your next question comes from Ryan Macdonald at Needham.
Hi, Thanks for taking my call.
Okay.
Okay.
Okay.
That's on a nice quarter here.
I'll point out for the business earlier this year, we enter in China, but I don't know.
It's interesting as well that youre kind of talking about some attune launches one Cantonese for Mandarin speakers, and then English fernbank Gaelic speakers, which really unlocked to large learner populations in India and China. So just curious you know what progress youre seeing internationally in the quarter and maybe how those new language is really drove drove that.
Okay.
Yes.
Yes. Thank you for the question because it's something that we're spending a lot of effort just to remind everyone.
Mainly a subscriptions business and.
About half of our revenue comes from.
English speaking countries U S UK et cetera.
We think there is a lot of room to grow internationally. If you look at the language learning market the offline language learning market the vast majority of it.
The spend is internationally in particular learnings.
Okay.
Okay.
Yes.
Because we're online we're an app, we're still getting a lot of our spend you know come from places like the U S or the U K, but offline we will see the majority of the spend our internationally. So we think it's a major opportunity.
That's going to be a focus for us over over the next several quarters. We're doing exactly what you said, we are not only adding courses to typically courses to teach English different populations, but not only adding them, but more importantly.
Banding, those courses and really making them teach ought to more advanced users.
Sure.
Okay.
And there are a lot of effort on that and things like you know, we're just going to be helping us for that also because you have a certain regions, where subscriptions are not not preferred so kind of one time payments are probably gonna be helping us for that so I mean, the main thing that I would say is this is this is a major focus for us and we're going to be working on that again for the next several years, that's really helpful. And then and maybe that on our marketing efforts.
I think campaign is an area, where you've been really efficient.
<unk> seen a nice progress you made up of the game of Thrones collaboration, but yeah Theres a major.
Or.
You know that cost coming up at the end of the month that brings all the millions of people together from all different languages, yes, it seemed like a potential natural opportunity for growing out maybe.
Maybe capitalize on that just curious how are you doing anything around this event and perhaps previously when we looked at Olympics or other major soccer tournaments like us that has.
Have you seen any signs of that as a catalyst to drive more learners through the platform.
Yeah. It's a great question. So we definitely have a lot of stuff planned, particularly our social media I mean, if you've been following our social media work.
Sure.
Sure.
We're quite good at social media.
It kind of strike a chord with it so there's just a lot of stuff plans certainly youll see our mascot dual odd.
Doing silly things with and soccer fields.
A lot of stock plan for that Youre, not going to see us do things like sponsor the entire world Cup or something like that that would be in our view not be very efficient marketing, but I think we're gonna be able to capitalize a lot on this we're also doing these things work that allows that.
We're going to allow people to spend either cheers.
Okay.
Yeah.
Or instead.
<unk> they are not like too.
Teams in other in other languages. So we have we are marketing campaigns like that on social media.
Pretty cool, so I'm pretty well congrats again, thanks for the questions.
Thanks, Brian and the next question comes from Mario Lu at Barclays.
Great. Thanks for taking questions excellence on the in App purchases.
As you continue to build out these new features like match madness.
Yes.
Okay.
Okay.
Onstream optimum efficiency.
Station.
That's a great question.
For every feature that we build we try to do three things.
Three things that we're really looking at whether it's engaging whether it helps with monetization and whether it helps with teaching.
And in all cases, usually each feature helps with one thing, but what we try to do is that it does not hurt the others.
For in App purchase stuff most of it.
Okay.
Sure.
We're going to be building are probably going to be be helping with monetization but.
But we just want to make sure that they don't hurt engagement and also don't hurt learning.
So generally whenever we put something out there even if it's like what may seem like a silly game like maps madness, there's actually quite a bit of land value there from the <unk>.
I'm aspect to it basically try to get price to get the words kind of more cement that in your head. So we're going to be trying to just to make sure that it does not decrease in email or not learning outcomes.
Okay that makes sense and then maybe one on the years from now.
The shareholder letter.
Eric.
You guys are pretty excited about it this time around.
After last year's success.
So really the gap for this time around that may be different.
But that we should monitor.
We've done the new year's promotion several years in a row, we've gotten quite good at it we know we know when to start it we know which day to start it's like basically December 28, that's the best way to start with Abi tested the Hell out of all of these.
So we're pretty excited because every year it works out.
Steve.
Okay.
Yeah.
Where youre going to see a fun thing of course, it looks different than previous years, because we changed the look and feel of our subscription used to be called <unk> plus now it's called Super dwelling or with much better graphics is going to look different and we're going to try and maybe a number of maybe test. For example, we're also going to be cleaned the family plan, whereas in previous years. We havent include if Amazon so stuff like that but generally we're just we're just excited because it is a really exciting time of growth for drilling we see.
Every year during the year not only do we get an influx of users because of nearest resolutions, but the nearest promotion allows us.
Sure.
So in terms of money off of that so we're pretty excited by it. Thank you.
And your next question comes from Mark Mahaney at Evercore go ahead Mark.
Okay I.
I think the one of the most interesting things in the print as this number of MA used 7 million I think thats a record high so could you tell us what the source of those meus were and any early read on into weather.
They are likely to convert into subscribers.
Sure.
Well with the lifetime to us.
Record high.
So yes. So this this quarter I mean, basically we've seen accelerated both <unk> and <unk> growth.
And so we're very happy with that the sources. The same thing thats been throughout basically most of our growth is organic through word of mouth and we just keep the.
The flywheel, just keeps getting better and better I think mainly because of product keeps better on.
It is getting better and better.
Okay.
Well look to retain users more and at a friend's mark when you add more shows and stuff like that so.
There is that in terms of how likely they are to convert our commercial our commercial rates are staying pretty steady or increasing over time. So they are about as likely to convert as they are the ones that have been in the past. So this is why we think for US we're very excited with general user growth because its the kind of the top of the funnel that gets us more users, which then gets us more subscribers.
Which makes us more revenue and then.
Two more questions just.
Anything interesting geographic split.
Okay.
In terms of what's any use came roughly $6 5 million people from Beijing, just it's a big number so I'll just ask them, where those people came from and then can I switch over to duo masso. So I've downloaded the app and I havent used it enough yet.
I'll do it just talk just talk if you don't mind about the monetization path for that how quickly you want to monetize it but do you think that the path is there to monetize as well as you've done language.
Sure.
Matt critical.
That's all you have adult stuff and stuff for training its a critical skill arguably maybe more critical than language either I don't know, but just talk about how you think about the path of getting getting it out there monetizing. It do you think it'll be justice organic and its growth as <unk> been some language app today. Thanks, a lot sure. Okay. So the first question is in terms of geography, and we're aware of.
The kind of the new Mou is coming from and kind of.
Geographic spread.
Generally we're seeing that we're growing across all geographies of course right.
Yes.
Yes.
Some are weaker than others are continues to be up this growing place, it's not China I mean, China has been growing with some but I mean, it's.
Its countries like India, Vietnam et cetera.
That's the fastest growing region was actually seeing above average growth.
In countries, where we monetize it really well so U S. U K Western Europe are all growing above average for us above the average I guess, 51%.
<unk> growth or whatever 35%.
Okay.
Some are growing above that so it is across all regions, but there's a few regions that are doing a little better.
In terms of mass.
And monetization so first of all I mean, we launched this up to two weeks ago, we're very happy with the launch so far everything has gone as expected or better than expected.
Are you happy with the product as you noticed we have stuff for adults and also for children. One of the things that is interesting. So the content. There. So far the content is basically third and fourth grade math on if you.
Yeah.
Okay.
I've forgotten what that means it's fractions multiplication angles.
Area of certain geometric shapes perimeter of certain geometric shapes et cetera.
It turns out that adults really like this and if you actually look at it we have more adult uses and we have children diverse in the map. So far again, it's only been two weeks. So it's early but I think this app is going to be used more by adults and children.
That's kind of what I think in terms of monetization I'm pretty confident we'll be able to monetize this up pretty similarly to duolingo.
I think what will happen and again I'm talking about something thats going to happen quite in the future. So take it with a grain of salt, but I think what we'll end up doing is we will probably end up putting on out at the end of a lesson and then we're going to have the super duolingo subscription, which is going to be shared across our apps.
To help monetize this we think that the family plan is going to help with this but we also think that the math out by itself is going to stand on its own.
Okay. Thank you Louise.
Sure.
Thanks, Mark and the next question comes from Eric Sheridan at Goldman Sachs.
Thanks, so much for taking the questions.
Okay.
Okay.
Okay.
Scott can you just talk with with Mark about basket broaden it out a little bit when you think about the long term and building more and more experiences and more apps and building on the platform how should we be thinking about utilizing the core to a lingo user today to potentially mine for additional use cases, and additional platform strength and growth or leaning into.
<unk>, which you did with the original it will then go up how do we think about the platform strength building versus elements that maybe you spend more.
Okay.
Alright.
So individual spy apps, and then to bring marketing to the question as well how should we be thinking about that in terms of like what you had to invest in 'twenty two I guess the product more breadth as we get into 'twenty, three and 'twenty four label monetization on top of those investments how should we think about margin lift over the medium to long term. Thanks guys.
Thank you Eric. Thank you for the question. So the first thing to say is and it's something that I think we need to emphasize in every earnings call.
For the foreseeable future.
The majority of our business is growing.
Okay.
Continuing to being language learning.
Learning if we have a lot of room to grow in language learning, we're really only believe we're scratching the surface and we're early in our monetization days. So as you can see our app as the growth is actually accelerating for the language learning up so for the foreseeable future and I'll call. It. The next two to three years, but at least it'll be mainly language learning now of course, we're working on other apps the math up as the first one we have.
Probably going to be releasing other ones.
And we are going to be working quite a bit on cross promotion.
Hum.
Be able to spend so much to the new apps now we wanted to do it in such a way, but these are very good at this we want to do in such a way that we spend some of our users from the Orlando for example, the map, especially that we also don't lose the dwelling what users. So they stay it's kind of like a double win there would they stay on drilling, but we send them to also start using a map app, we think that'll be able to see that quite well we're starting.
A team that is exactly doing that and we think we have we think we have quite a bit of potential for cross promotion here.
So.
This is early and what happens over the next year.
Over the next year to year and a half how that goes in terms of growth.
And then Eric on the second part of your question around the investment. So I think one of the really special things about.
The duolingo platform is that we were able to not only launch.
<unk> faster.
Than we otherwise would have been if it were kind of a de novo.
But all of the learnings that we've had from what makes an app engaging.
Hum.
Port really nicely.
From what we're learning in the math and so when you ask about our 2022 investment an investment that we're making over time, it's primarily engineers product managers and designers.
But we are able to launch these with very small teams because they are leveraging all of the.
Mechanics that we built.
And it is incredibly scalable so for me when I think about the.
The margin impact it has not been very much and I don't think it'll be that much more in 2023.
Then when you think about marketing.
Then we.
Hmm.
Yeah.
We expect these to be organically grown apps in fact, that's what.
That's our goal with them the marketing and equity small as well so that's the power of the platform that we built.
Thanks for the color.
Yeah.
Okay. Next question comes from Aaron Kessler at Raymond James.
Great. Thank you two questions first just maybe if you can update us on the family plan adoption.
What that Stanford retention rates.
Yeah.
Talk a little bit about shifting some of the AD supply for more internal promotion just curious if youre seeing the results thus far in terms of that driving more subscriptions as well as the third.
Third question Beach, any macro softness you're seeing on advertising overall, thank you.
Sure.
Okay. So sorry. The first question what was the first question the family plan on family plans look like yet.
Oh, yes, so a family plan is.
Growing quite nicely.
We've.
We now I think our last time, we spoke family plan was in the single digits with Cros doubled.
Okay.
Okay.
So and it's growing it's growing it keeps growing and growing quite nicely and of course.
The really nice thing about family plan is that retention of people in the family plan is much higher again, because if you are paying and as long as any of them any other people in your family are still using it youre going to continue paying so so we feel very good about that.
In terms of the exact what exactly has done to our overall retention I don't actually know off the top of my head I'm sure, Matt Thus, but I'm.
Im not sure we released that.
But I'll, let Matt.
And so that one I don't know what yeah for sure. So I mean, I think the way to think about retention. There is there are two types of the retention that we measure so.
And user retention user retention is continuing.
To grow nicely for us.
Your focus your question was primarily around subscriber retention. So when you look at the platform level. So take all of the subscribers that we have and how are they retaining that retention rate has gone up dramatically over the past year or two because we've seen a real big mix shift from monthly to annual plan and the annual plan retains better.
Okay.
Families candidate.
Well, it's probably not like the biggest material platform level shifts, we expect that cohort level retention to be improved for for some time and even more as we increase the family plan percentage. So we're really happy with how that's pertaining in and how that's going to impact the LTV of the platform.
Your next question was on ads.
So.
The AD revenue as you can see from our financials.
Uh huh.
It was impacted we think by what looks to be a kind of industry wide on advertising slowdown. So I don't think is anything super surprising in that I think there was some foreign currency.
Impact as well because a lot of our AD business comes on Android and outside the U S.
But again adds to us again as Luis mentioned, they're not a material part of our business.
They are not strategic.
Side of the fact that they help us convert.
For users to subscribers. So we saw but we think it's just not that big of a deal for our business.
Okay.
Okay.
Well. Thank you for your question I think was also.
Whether we've tried us switching some of our ads to apps to subscribe and yes, we keep running experiments to do that.
There's some optimal mix and we keep trying to find it. So yes, we are always running experiments to see.
What is the right mix it turns out the mix depends on the user there are some users that are a lot more likely to subscribe for them.
Yeah.
Give them absolute described where there are some users that are just essentially never going to describe and for them. They are the best thing. We can do is just probably give them.
Apps.
Thanks Erin.
And the next question comes from Nat Schindler with Bank of America.
Yes, Hi, guys couple of questions first on the.
The user numbers.
Digging in a little bit there Q3 at least northern Hemisphere is when school starts so was there any new promotions and pushes to get schoolchildren using the product that would have helped that number or is this just.
Uh huh.
Uh huh.
Hi, Rob.
It's a good question so yes in the Northern Hemisphere School starts in Q3, usually and every year, we see a growth that has to do with back to school. We run some we don't do a promotion, but we run some kind of very efficient marketing that is.
Either on our social media or a little bit of paid acquisition that is related to schools. We also have a <unk> product.
As drilling for schools what it is this is it.
Dashboard for teachers.
Students use the normal.
Two.
We will link board that tracks what the students are doing as opposed to having to go and look at every every phone kind of in person. So we have that product, but we've had that product for a couple of years.
And so.
We see we see this growth every year, but.
But this year, we see accelerated growth such as I guess, we're doing even better than the previous years not just with back to school. My guess is that had something to do with it but more of it was just organic growth.
Okay getting better.
Better.
Great and second question.
Has there been any change or can you give us any clarity on what the where you RMB.
Duration of your average booking what youre selling.
The last time, you were around 90% annuals.
Has that changed and can you tell us what it was like over the last few quarters. So that we can be.
Be aware when this is how it is.
Been affected numbers, yes, it's a great question and so.
The answer is we're roughly still around 90% annual plan.
And I think when you look back.
A year ago.
Number was in the seventies, so as we've gone through the course of the past call. It four to six quarters.
The percentage of that was an annual plan has gone up quite substantially.
It can't go up the same amount anymore right. We went up we went from 70% to 90%.
You can't go from 90% to 110% so.
The way, we are extending the retention of the.
Yeah.
Lisa.
And Mike maybe you can go ahead.
No.
But the way, we're extending the kind of the synthetic duration I guess he is a bad phrase is through things like the family plan right. That's how you actually extend the lifetime of the.
The subscribers longer as you increase the retention through things like that.
Not.
It's not just a problem for the extending the lifetime, that's great too but I.
I assume when you if everybody's looking at bookings growth.
If you are increasing the amount of annual as Youre selling 12 months.
One one and a half month I guess in a quarter on average that could have a pretty big effect is there a quarter, where we should really watch for that.
Yes.
Big year over year, yes over the course of 2023, we will see some impact from that but there's not going to be one particular quarter end.
In general, we still feel that we'll be able to to lap those quarters as well in terms of growth.
Thank you.
And the next question comes from <unk> <unk> at Piper Sandler.
Hey, Thanks for taking my question I wanted to ask couple of questions on Matt.
Hey, Dan.
Matt.
Do I need to NSA.
Lantus is going on right.
And I know you haven't kind of track data by the hour by the day suddenly.
It is like how is the adoption numbers. If you have if you don't have.
I want to share numbers, maybe I think any given.
Cohorts right.
The same language.
Folks who are paying users.
Duolingo.
Fresh green printer units.
H R.
The Florida customers that signed up.
That product.
Thank you. Thank you Evan for the question. So there's a number of things that they say, yes first of all early days.
It's not like we even know that much I mean, obviously, we have all the data you are right. We track it by the hour, we really look at it a lot, but it's very early days in our experience is that when you launch on that but just takes a while to for things to settle to you for you to really figure out what our and we just happened.
Okay.
A few things.
One if you look at the retention of the users of the map app. So far it looks actually quite good is not as good as dwelling or a tooling was an app that's been optimized for 10 years.
So it's hard to compete with what it is certainly a lot better than the initial retention of dwelling or when we launched duolingo 10 years ago. So it looks a lot better. So we feel pretty good about a completely new app, having such good retention feel good about that in terms of the users. We havent done much I mean, it's not like we have done any paid advertising, we've not done any marketing campaign or anything so that the users would.
Come from now is our social media pushes that we've done and some of the press that was right.
And around it and some of the word of mouth that has happened, but there's just not a lot of time that have that before four word of mouth to happen, there's only been two weeks.
So far we know that more than half of the users of the map have a dual and got count we know that.
But other than that.
Just not we don't know.
Wow.
Okay, and then from a product perspective.
Kind of an initial feedback has there been any like big product enhancements.
We need to see how you feel like Hey, you know like that.
Okay.
The product is never done right like medieval English.
Sandy if I understand it.
And Matt, but have there been any kind of big.
Like laws in terms of design product anything as that.
And then finally feel pretty good about kind of keeping things going at it.
Hum.
On graduate piece.
The truth is we feel pretty good before launching we knew what the roadmap for the next several years and government remains the same given all the user feedback.
This is just going to be like it is going to be like the only one like you said over the last 10 years dealing with still getting better every single quarter, even though we've been working on it for the last 10 years I think it's going to be the same for the map App. We have 10 more years of work to do similarly.
I know there's been a lot of questions about math.
I, just really want to remind people.
Language learning is our main thing right now and it's going to take a while for map to catch up.
10 years for dwelling what to make whatever revenue, we're making these phasing of roughly 100 million Bucks a quarter is going to hopefully won't take the nearest for the math to get there, but it will take several years.
To get there.
We just have it in terms of the roadmap, we know we need to add more content I mean, we have third and fourth grade type content problem.
Got it.
And then.
So we're going to add more content and we have a number of other things that we just know we need to add that our.
That come from Duolingo. So for example, the streak in the map App is not as sophisticated as the streak on drilling on me. The other day, we're looking at a street mechanic for doing that thing is so sophisticated like you'd be surprised how sophisticated is to make sure that users don't lose their streak because losing your streak is like a terrible thing.
Whereas the map App has a pretty simplistic version of a streak.
Stuff like that there's all these things that we know from duolingo that we just need to start putting back putting into the math of that but we haven't yet.
Yes.
Okay.
Yes.
Hi.
Okay language.
There is no other product has now you'd have to ask you kind of had to kind of.
Thanks, Patrick Matthew have this massive user base user base and actively engaging is there a plan to kind of Houston.
I would take out of the core application to promote Matt I mean have you started to do that like put a bottom.
100%, we plan to do that we have not started that at all we will.
Type of integration you can actually get really good at this type of integration. This is the type of stuff we've talked about so the simplest thing, which we haven't even done the simplicity. The simplest thing is just at the end of our dual lingual lesson put an AD that says hey by the way we have a map app. That's the simplest thing, but you can get more sophisticated.
Slightly more sophisticated as your AD could be playable. So you can write there'll be like who try it for a second and then and then you can go to the App, but then you can start getting much more much more integrated for example on duolingo. We have these things called daily quests, where you have to do certain things like complete three lessons or do a story on the Uh huh.
We can make one other question B go do a math lesson or you can make it so that now Youre street onto a link on the drilling of a language learning up could be extended Baidu map. So you can you can do just a much better integrations and so youll see us do that we're going to try all these things over the next.
However, long this takes we're going to be trying all these things.
Thank you very much.
Great. Thanks, Arvind and I am showing no further question.
Uh huh.
Okay.
And even with sprinkles.
Thank you for all the questions.
You know keep keep learning languages or Matt if you want, but yes, remember our Spanish or English.
<unk>.
Thanks, everyone.