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Duolingo (DUOL.O) posted strong first-quarter results ‌but signaled a more measured growth trajectory ahead, as the language-learning app prioritizes user engagement and product improvements over near-term monetization.

Shares of the Pittsburgh-based company rose about 2% in volatile extended trading.

At the heart of ​Duolingo's strategy is a deliberate shift toward prioritizing user experience and long-term retention ​over near-term monetization, as it invests in product quality and engagement to ⁠build a larger base of paying subscribers.

"We are making long-term bets, and the returns ​on the investments we're making are going to be 2027 and beyond," CFO Gillian Munson told ​Reuters.

Investors have increasingly focused on whether Duolingo can sustain its strong conversion of free users into paying subscribers under its freemium model, particularly as bookings growth slows.

The language-learning platform reported revenue of $292.0 million in ​the first quarter, beating analysts' estimates of $288.5 million, according to data compiled by LSEG, as ​subscription growth remained the primary driver of its business.

Daily active users rose 21% to 56.5 million, while ‌paid ⁠subscribers increased 21% to 12.5 million, pointing to continued engagement across its global user base.

Total bookings grew 14% to $308.5 million in the first quarter, beating estimates of $301.7 million, according to data compiled by Visible Alpha.

Duolingo largely maintained its full-year revenue expectation, projecting revenue of about $1.21 billion, ​in line with ​analyst expectations, with growth ⁠of roughly 16%. For the second quarter, the company forecast revenue of about $295.5 million, slightly ahead of estimates of $294 million.

The company said ​it expects bookings growth of about 10.5% for the year, with a ​slower pace ⁠in the second quarter before accelerating later in 2026. Duolingo has set a goal of reaching 100 million daily active users by 2028.

The company has been investing heavily in product improvements, ⁠particularly in ​speaking features and AI-powered tools such as its premium ​Duolingo Max tier. It said margins could moderate later in the year as usage of AI features increases.