Language learning platform Duolingo posted stronger-than-expected quarterly results on Wednesday, shrugging off weeks of backlash over its aggressive pivot to generative AI. The company’s stock surged nearly 30% on the news.

Despite criticism for replacing contract workers with AI systems, Duolingo reported record performance, projecting more than $1 billion in revenue for the year. Daily active users have also climbed 40% year-over-year, reinforcing the financial success of its AI-first strategy.

In April, CEO Luis von Ahn declared Duolingo would shift to becoming an “AI-first” company, advising teams to halt hiring unless absolutely necessary. The move enabled the launch of 148 new language courses—more than doubling its previous offerings. “Without AI, it would take us decades to scale our content to more learners,” von Ahn said at the time. “We owe it to our learners to get them this content ASAP.”

While some users have complained that the app’s quality has declined, particularly since the rollout of AI-generated lessons, Duolingo’s financial data suggests otherwise. The company’s growth landed at the lower end of its 40–45% target, which von Ahn attributed to negative social media reactions.

“I said some stuff about AI and didn’t give enough context,” von Ahn admitted during the earnings call. “We stopped posting edgy posts and started sharing more positive content—and it worked.”

Still, skepticism lingers. On platforms like TikTok, users continue to poke fun at the company’s AI pivot, questioning whether real employees were behind videos. Duolingo has responded by reaffirming that its creative team is still human-powered.

Despite the criticism, the company’s bottom line continues to improve—a sign that, for now, Duolingo’s bet on AI is paying off.