How Duolingo Turned a Free Language App Into a $7.7B Business | WSJ The Economics Of

Duolingo has been the top education app in Apple’s App Store for most of the past decade, making the company a revenue of around $500 million annually. But most people who use the language lesson app do not pay. So how does a free educational app manage to have a valuation of $7.7 billion?

WSJ explains how Duolingo is using AI-enhanced experiments to subsets of its user base, tailoring its offering to hook users like an addictive video game.

Chapters:
0:00 Top education app
0:48 Growth and gamification
2:41 How the app works
5:47 Why the app is free

The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.

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