Revenue
$50.00M
2022
Valuation
$395.00M
2022
Growth Rate (y/y)
51%
2022
Funding
$100.00M
2022
Valuation: $395.00M in 2022
Note: Data for Udemy, Duolingo, and Thinkific gathered from S-1/10K docs. For other companies, valuation, revenue, and growth rate are based on SEC disclosures, Delaware filings, Sacra estimates, and reports from TechCrunch. Bubble size corresponds to company valuation. Vertical axis has a log scale. Estimates are up-to-date for July 2022.
Preply has raised $100M from Hoxton Ventures, Owl Ventures, Evli Growth Partners, and others. It was valued at $395M in March 2022 with a valuation-to-revenue multiple of 8x.
One of its closest competitors, GoStudent, is valued at $3.5B and has raised $685M. Duolingo, the largest language learning app globally, has a market cap of $3.1B with a valuation to revenue multiple of 12x.
Scenarios: $120M to $420M ARR by 2026
To evaluate Preply's future potential, we analyze multiple scenarios projecting annual recurring revenue (ARR) through 2026. These projections consider various growth trajectories and market multiples, factoring in both industry dynamics and company-specific performance indicators within the edtech space.
| 2021 Revenue ($M) | $50M | ||
|---|---|---|---|
| 2021 Growth Rate (%) | 38.89% |
Preply achieved $50M in revenue for 2021, demonstrating solid growth of 38.89% year-over-year. While this growth rate is healthy, it represents a normalization following the company's explosive 4X expansion in 2020 during the COVID-driven shift to digital learning.
| Multiple | Valuation |
|---|---|
| 1x | $50M |
| 5x | $250M |
| 10x | $500M |
| 15x | $750M |
| 25x | $1.2B |
Based on Preply's $50M revenue, valuations span from $50M at a conservative 1x multiple to $1.25B at an ambitious 25x multiple. The current $395M valuation sits between 7-8x multiples, suggesting room for growth while remaining more conservative than Duolingo's 12x multiple.
| 2026 Growth Rate | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| 10.0% | $50M | $66M | $82M | $96M | $109M | $120M |
| 15.0% | $50M | $66M | $84M | $102M | $120M | $138M |
| 20.0% | $50M | $67M | $87M | $108M | $132M | $159M |
| 30.0% | $50M | $68M | $92M | $121M | $159M | $207M |
| 40.0% | $50M | $70M | $97M | $136M | $190M | $265M |
| 45.0% | $50M | $70M | $100M | $143M | $206M | $299M |
| 50.0% | $50M | $71M | $102M | $151M | $224M | $336M |
| 55.0% | $50M | $72M | $105M | $159M | $243M | $376M |
| 60.0% | $50M | $72M | $108M | $167M | $263M | $420M |
Revenue projections show potential outcomes ranging from $120M to $420M by 2026, representing growth scenarios between 10% and 60%. Even the conservative case demonstrates healthy expansion, while aggressive growth paths could position Preply as a major player in the online education market.
| 2026 Growth Rate | 1x | 5x | 10x | 15x | 25x |
|---|---|---|---|---|---|
| 10.0% | $120M | $599M | $1.2B | $1.8B | $3B |
| 15.0% | $138M | $692M | $1.4B | $2.1B | $3.5B |
| 20.0% | $159M | $795M | $1.6B | $2.4B | $4B |
| 30.0% | $207M | $1B | $2.1B | $3.1B | $5.2B |
| 40.0% | $265M | $1.3B | $2.7B | $4B | $6.6B |
| 45.0% | $299M | $1.5B | $3B | $4.5B | $7.5B |
| 50.0% | $336M | $1.7B | $3.4B | $5B | $8.4B |
| 55.0% | $376M | $1.9B | $3.8B | $5.6B | $9.4B |
| 60.0% | $420M | $2.1B | $4.2B | $6.3B | $10.5B |
Projecting forward to 2026, valuations range from $120M at conservative growth/multiple assumptions to over $10.5B in the most optimistic scenario (60% growth, 25x multiple). Even moderate scenarios suggest potential for significant value creation compared to Preply's current $395M valuation.
Bear, Base, and Bull Cases: 5.5x, 7.5x, 9.5x
Building on our revenue projections, we analyze three distinct scenarios using multiples of 5.5x (bear), 7.5x (base), and 9.5x (bull) to reflect varying market conditions and Preply's potential execution outcomes. These cases provide targeted insights while remaining within established edtech industry valuation ranges.
| Scenario | 2026 Growth Rate (%) | Multiple |
|---|---|---|
| Bear 🐻 | 15% | 5.5 |
| Base 📈 | 25% | 7.5 |
| Bull 🚀 | 35% | 9.5 |
Growth projections range from conservative (15% with 5.5x multiple) to aggressive (35% with 9.5x multiple), reflecting various market scenarios. Even the bear case suggests healthy expansion, while the bull case positions Preply for significant growth in the online education market, though at more modest multiples than peers like Duolingo.
| Bear 🐻 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | $50M | $66M | $84M | $102M | $120M | $138M |
| Growth | 38.89% | 32.46% | 26.94% | 21.42% | 17.85% | 15% |
| Base 📈 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | $50M | $68M | $89M | $115M | $145M | $182M |
| Growth | 38.89% | 35.15% | 31.94% | 28.74% | 26.66% | 25% |
| Bull 🚀 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | $50M | $69M | $94M | $128M | $174M | $235M |
| Growth | 38.89% | 37.84% | 36.94% | 36.05% | 35.46% | 35% |
Our bear, base, and bull cases for Preply depend primarily on how effectively the company can maintain growth and compete in the evolving online education market
- In the bear case, competitive pressures and market headwinds lead to slowing growth of 15% and a modest 5.5x multiple, reaching a $761M valuation on $138M revenue
- In the base case, successful enterprise expansion and strong consumer growth support 25% growth and a 7.5x multiple, achieving a $1.36B valuation on $182M revenue
- In the bull case, expansion into adjacent categories and successful subscription model implementation drive 35% growth and a 9.5x multiple, resulting in a $2.23B valuation on $235M revenue.
| Scenario | 1. Bear 🐻 | 2. Base 📈 | 3. Bull 🚀 |
|---|---|---|---|
| 2021 Revenue | $50M | $50M | $50M |
| 2021 Growth Rate (%) | 39% | 39% | 39% |
| 2021 Multiple | 5.5 | 7.5 | 9.5 |
| 2021 Valuation | $275M | $375M | $475M |
| 2026 Revenue | $138M | $182M | $235M |
| 2026 Growth Rate (%) | 15% | 25% | 35% |
| Multiple | 5.5 | 7.5 | 9.5 |
| 2026 Valuation | $761M | $1.4B | $2.2B |
The uncertainty around these three cases depends primarily on Preply's ability to navigate competitive pressures, successfully expand enterprise offerings, and leverage its marketplace position into new verticals while maintaining strong tutor retention and monetization in an evolving online education landscape.
- In the Bear case: Economic pressures cause a pullback in corporate language learning budgets while increased competition from both horizontal platforms and other specialized marketplaces leads to commoditization, forcing Preply to compete primarily on price and putting pressure on their take rates.
- In the Base case: Preply successfully expands its enterprise offering while maintaining strong consumer growth, achieves greater tutor retention through improved monetization tools, and continues to benefit from the broader shift toward online language learning.
- In the Bull case: Preply leverages its marketplace position to expand beyond language learning into high-value adjacent categories (like business skills and test prep), successfully implements a subscription model, and becomes the dominant global platform for live online tutoring across multiple subjects.
Based on our analysis, Preply's valuation scenarios reflect significant upside potential, from $761M in the bear case to $2.2B in the bull case by 2026. Even the conservative projection suggests nearly 2x growth from today's $395M valuation, while successful execution could position Preply as a major edtech player.
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