Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/duolingo-inc" target="_blank" data-smartkarma-citation="entities:33531:1" rel="noopener">Duolingo (DUOL US)</a>  reported solid 2QFY22 results and hosted annual Duocon 2022 event in August. Management raised full-year revenue guidance, but the stock remained range bound. </li>
<li>We model total revenues growing +45% y/y to $365M in FY22 and +42% y/y to $517M in FY23, up vs. our prior estimates and projections. </li>
<li>2QFY22 results beat all key estimates, driven by accelerating user growth and strength across the entire business. <a href="https://www.smartkarma.com/entities/duolingo-inc" target="_blank" data-smartkarma-citation="entities:33531:1" rel="noopener">Duolingo (DUOL US)</a>  remains our top mid-cap pick in the EdTech industry.</li>
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Duolingo (DUOL US)  reported solid 2QFY22 results and hosted annual Duocon 2022 event in August. Management raised full-year revenue guidance, but the stock remained range bound. 
We model total revenues growing +45% y/y to $365M in FY22 and +42% y/y to $517M in FY23, up vs. our prior estimates and projections. 
2QFY22 results beat all key estimates, driven by accelerating user growth and strength across the entire business. Duolingo (DUOL US)  remains our top mid-cap pick in the EdTech industry.


Duolingo. User Growth And Cash Flow Metrics Remain Robust. Management Raised FY22 Guidance

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<li>
<a href="https://www.smartkarma.com/entities/duolingo-inc" target="_blank" data-smartkarma-citation="entities:33531:1" rel="noopener">Duolingo (DUOL US)</a>  will announce its 2Q22 quarterly results <strong>on August 4, 2022</strong>. The leading U.S. EdTech unicorn raised FY22 guidance and reported strong operating metrics in 1Q22.</li>
<li>Duolingo app is back in Apple App Store and Android stores in China after the app was removed from some app stores 1 year ago due to Beijing’s EdTech crackdown. </li>
<li>Durable Capital Partners acquired ~$158M worth of <a href="https://www.smartkarma.com/entities/duolingo-inc" target="_blank" data-smartkarma-citation="entities:33531:1" rel="noopener">Duolingo (DUOL US)</a>  shares this year. General Atlantic and Durable Capital Partners led the most recent Series H private round in November 2020. </li>
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Duolingo (DUOL US)  will announce its 2Q22 quarterly results on August 4, 2022. The leading U.S. EdTech unicorn raised FY22 guidance and reported strong operating metrics in 1Q22.
Duolingo app is back in Apple App Store and Android stores in China after the app was removed from some app stores 1 year ago due to Beijing’s EdTech crackdown. 
Durable Capital Partners acquired ~$158M worth of Duolingo (DUOL US)  shares this year. General Atlantic and Durable Capital Partners led the most recent Series H private round in November 2020. 


Duolingo: Now, Available In China. Plenty of Positives and Strong Operating Metrics

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/duolingo-inc" target="_blank" data-smartkarma-citation="entities:33531:1" rel="noopener">Duolingo (DUOL US)</a> , high-profile, mobile-first EdTech unicorn, has successfully completed IPO in July. Company has raised ~$350 million implying valuation of ~$4.5 billion on a fully diluted basis. Selling stockholders offered ~1.4 million shares of Class A common stock at IPO price of $102 per share. Our bull case valuation is $185, what implies 30%+ upside potential, and we think Duolingo is well positioned to gain market share in a growing $10B+ online language learning market and ~$5B English Certification market.  </p>

Duolingo (DUOL US) , high-profile, mobile-first EdTech unicorn, has successfully completed IPO in July. Company has raised ~$350 million implying valuation of ~$4.5 billion on a fully diluted basis. Selling stockholders offered ~1.4 million shares of Class A common stock at IPO price of $102 per share. Our bull case valuation is $185, what implies 30%+ upside potential, and we think Duolingo is well positioned to gain market share in a growing $10B+ online language learning market and ~$5B English Certification market.  

Duolingo: Category Leader of Online Language Learning; 30%+ Upside

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Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

<h2>Headline Developments</h2><p>Another bad week for Didi (DIDI) , with the stock plummeting a further 21% after Bloomberg reported that Chinese regulators were weighing up “serious, perhaps unprecedented penalties” which may include a hefty fine (&gt;$2.8b), enforcing a state-owned investment or delisting the company from the NYSE.</p>

Headline DevelopmentsAnother bad week for Didi (DIDI) , with the stock plummeting a further 21% after Bloomberg reported that Chinese regulators were weighing up “serious, perhaps unprecedented penalties” which may include a hefty fine (&gt;$2.8b), enforcing a state-owned investment or delisting the company from the NYSE.

United States

Duolingo, Inc. designs and develops mobile learning platform. The Company teaches students a foreign language while simultaneously contributing to translate real-world content from the web. Duolingo serves students worldwide.

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Duolingo (DUOL US)

Duolingo. User Growth And Cash Flow Metrics Remain Robust. Management Raised FY22 Guidance

Duolingo remains our top mid-cap pick in EdTech, and we believe the company’s growth profile of generating 40%+ organic growth is underappreciated...

Andrei Zakharov

Duolingo: Now, Available In China. Plenty of Positives and Strong Operating Metrics

We maintain Overweight rating of Duolingo and lower our price target from $161 to $125 on peer-group multiple compression

Andrei Zakharov

Duolingo: Category Leader of Online Language Learning; 30%+ Upside

Duolingo is a category leader of online language learning and we believe Duolingo shares still have 30%+ upside potential in our bull case scenario

Andrei Zakharov

Weekly Innovation Review (WIRE) #42

Headline Developments: Another bad week for Didi (DIDI) , with the stock plummeting a further 21% after Bloomberg reported that Chinese regulators...

Granite Bay Capital

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