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| Statement |
|---|
| For the full year 2024, we expect strong top line performance from rapid user growth and continued improvements in free-to-pay conversion |
| We're, of course, very proud of the fact that for 10 quarters in a row we accelerated the user growth |
| So, we feel pretty good about that |
| We're very happy with the results so far |
| In 2023, we reached an inflection point, demonstrating our ability to get operating leverage and added over 13 points of adjusted EBITDA margin |
| I'm generally very excited by the roadmap of -- it will just be much better |
| In short, we've been able to demonstrate that we can turn our incredible product into a profitable business |
| But we're going to have more devoted resources to it this year, which gives us confidence that that could really grow nicely even above and beyond kind of that organic demand that we're seeing in the platform |
| So, we see -- from what we see just looks very strong |
| In 2023, it grew really impressively |
| Now we accelerated DAU growth for 10 straight quarters from Q3, 2021 through Q4, 2023 and I'm proud of that |
| This Q1, we expect DAU growth to be closer to the mid-50s, which is still impressive given how large our user base has become |
| And we have strong momentum which is why we feel good about our 2024 bookings outlook which has bookings growth of 28% year-over-year at the midpoint |
| This was capped off by a record user growth, bookings and revenue profitability and free cash flow in the fourth quarter |
| And we're just -- not only are we reducing costs there, but probably even more importantly, we're able to do things a lot faster |
| But the results that we have so far, we're very happy with and they are much better than the results we had after we launched language learning |
| So we're very happy with that |
| Japan in particular has grown really nicely |
| We'll try some stuff that will probably flop, but some of it will work, and we feel very good about that |
| And then Europe, both of those have shown really robust growth |
| This year we expect to achieve our adjusted EBITDA margin expansion by getting operating leverage across all three cost categories of non-GAAP OpEx |
| And so yeah, I'm very happy with that |
| As Luis shared we had a fantastic year capped off with record bookings and profitability in Q4 |
| We exceeded our bookings forecast in part because of the continued acceleration in user growth in the fourth quarter because we saw strength in our family plan throughout the quarter and because we saw better-than-expected performance in our New Year's promotion |
| Our continued strength in user and subscriber growth drove bookings and revenue growth of 51% and 45% year-over-year, respectively or 49% and 43% on a constant currency basis |
| First, on the incremental margins that you're guiding to for this upcoming -- for this year of 35%, so those are very intrinsically robust EBITDA margins |
| And when we're able to do that I think that we're going to be a much better product for people who come in to learn English because the vast majority of English learners have some prior proficiency in this kind of weird patchwork way |
| So, it's hard to single out one particular country, just given how broad-based it's been, but those are a couple I'd say, have grown really nicely over the past year |
| So when we talk about strength in Q4, it grew over 100% year-over-year |
| We delivered stellar 2023, surpassing the ambitious expectations we set out for ourselves at the beginning of the year |
| Statement |
|---|
| More specifically from Q1 to Q2, we expect bookings growth to step down by about five points as we lap our exceptional results from last year |
| In 2023, the ARPU, because as I mentioned we are lapping the price change we did in 2022 ARPU about every quarter went down between 7% and 8%, more or less in 2023 except for Q4, which went down by about 4% |
| Specifically, we expect adjusted EBITDA margin for Q2 to be lower than Q1; Q3 to be about the same as Q1; and Q4 to be the highest |
| It's a little bit harder to forecast but it's typically grow slower than our subscriptions as well |
| We expect our bookings growth rate to gradually step down throughout the year from Q1 to Q4 |
| And so, when we look at ads, ads grew a lot slower than subscriptions in 2023 |
| The first one is that, it should increase on absolute dollars but it should grow obviously slower than bookings |
| The second thing – the second problem we needed to solve and that is one we are currently solving |
| And being in the 50% to 60% range and seeing that go up or down, the point we are trying to make is just that it's not always going to accelerate from here |
| I think it's true that some of these things we just can't control |
| We can't control that much, but it's awesome that that happens |
| But as we've said before, we can't accelerate user growth forever |
| And then that usually comes back down towards their long-term margin |
| If somebody had asked me to do DuoRadio five years ago, I would have told them you're crazy |
| I guess first just on the 2024 outlook on the user side of things just only kind of expecting a slight deceleration |
| Do we lose Curtis? Okay |
| They are lower than what you did in 2023 |
| We did reduce our contractor force but this was not like full-time employee layoffs or anything like that |
| That is not quite true in our platform |
| I know some of us here need to improve our English |
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