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US President Barack Obama (L) talks with Luis von Ahn (R) and Gina Gotthilf of Doulingoi, a free. It has raised more than $83 million from venture capital firms.
It claims to have more than 100 million current users as of June 10, a growth of 40 million from just over a year ago. It offers courses in 13 languages that involve earning points and progressing through levels.
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A free mobile app, Duolingo builds gamification into the learning process even more extensively than Babbel and Rosetta Stone. Rosetta Stone is focused on selling its products to companies and schools, whereas Babbel and Duolingo are more focused on consumers.ĭuolingo, a popular language-learning app based in Pittsburgh, Pa., is led by Carnegie Mellon University computer scientists Luis von Ahn, who founded reCAPTCHA, and Severin Hacker. The company’s stock price has declined from a high of more than $30 per share in 2009 to around $6.70 this month and putting a dent in Rosetta Stone’s market capitalization, which is now close to $146 million.
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And Rosetta Stone has had difficulty transitioning its products to those new formats and audiences, even after buying a free online learning site called LiveMocha and after creating its own apps for both Android and IOS (Apple) platforms. Rosetta Stone’s strategy of selling boxed language learning CD sets at kiosks in airports has become outmoded as language learning has shifted to the Internet and mobile devices. (Jason DeCrow/AP Images for Rosetta Stone) But the company’s net income loss widened in 2014 to a record $74 million, down from a $16 million annual loss in 2013. Rosetta Stone reported $262 million in revenue in 2014, down 4% from 2012, when the company’s revenues peaked. Rosetta Stone, founded in 1992, offers courses in 24 languages, from the most popular (English, Spanish) to the obscure (Swedish, Tagalog). Rosetta Stone Inc., the Goliath of language-learning companies in the United States based in Arlington, Va. But sales of mobile language learning products will climb 73% to $14.5 billion by 2019 according to the firm. The result is more like a video game that draws users to keep returning for daily vocabulary and grammar practice in a foreign language.Īmbient Insight, a research firm, predicts global sales of language tools will drop 2.1% to $56.3 billion by 2018 from 2014.
The more nimble mobile players such as Babbel, Duolingo and Britain's Memrise appear to be growing faster than establishment names such as Berlitz and Rosetta Stone. The mobile-focused companies are working hard to deliver the language learning content using the touchscreen and keyboard for exercises and the speakers and microphone for voice recognition language practice. In July, the company announced it raised $22 million from a group of investment firms to drive further growth.īabbel’s biggest apparent competitors would be Rosetta Stone and Duolingo. The Babbel app for the Apple watch launched in April.
In January, Babbel opened an office in New York, with Holl leading the operations to expand Babbel’s presence in North America. The company says it has experienced 100% year-on-year growth in revenues and has been profitable since 2011.
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The company says that up to 120,000 users per day download the free Babbel app, which they say is the highest grossing European language-learning app in the iOS App Store and the Google Play Store.
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