Good writeup! Do you think the sector is structurally declining? Alternatively do you think there a whole load of new entrants that will saturate market share and growthwhile lowering margins?
Thanks! Ed-tech companies experienced a massive growth spurt during the pandemic, but things have cooled off a lot since. That said, I find it hard to pin Duolingo as a pure ed-tech company—it’s more of a hybrid: part SaaS, part mobile game, part education-focused. That unique positioning is perhaps what helps it stand out in what has always been a highly competitive space. As for new entrants, AI is clearly the elephant that has trampled into the room. For something like coding, it’s now a lot easier (and cheaper) to use ChatGPT or Gemini than to pay for a pricey subscription on either Coursera or Udemy.
Good writeup! Do you think the sector is structurally declining? Alternatively do you think there a whole load of new entrants that will saturate market share and growthwhile lowering margins?
Thanks! Ed-tech companies experienced a massive growth spurt during the pandemic, but things have cooled off a lot since. That said, I find it hard to pin Duolingo as a pure ed-tech company—it’s more of a hybrid: part SaaS, part mobile game, part education-focused. That unique positioning is perhaps what helps it stand out in what has always been a highly competitive space. As for new entrants, AI is clearly the elephant that has trampled into the room. For something like coding, it’s now a lot easier (and cheaper) to use ChatGPT or Gemini than to pay for a pricey subscription on either Coursera or Udemy.