Nextdoor Investor Update - Q1 2025 investors.nextdoor.com 1 John T. Williams, Head of IR 3 Nirav Tolia, CEO 4 2 Disclaimer Certain statements in this Investor Update may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "project," ...

Nextdoor (KIND) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 Good afternoon. My name is Joel, and I will be your conference operator today. At this time, I would like to welcome everyone to Nextdoor's First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. You may now begin your conference. Speaker1 Thank you, operator. I'm John T. Williams, N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40246 Nextdoor Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 86-1776836 (State or Other Jurisdi ...

Nextdoor Reports First Quarter 2025 Results SAN FRANCISCO, CA, May 7, 2025 — Nextdoor Holdings, Inc. (NYSE: KIND), the essential neighborhood network, today reported financial results for the first quarter ended March 31, 2025. Nextdoor's highlighted metrics for the quarter ended March 31, 2025 include: "In Q1 we continued to add new users, improved margins, and generated positive operating cash flow — though our most significant progress during Q1 was product-related," said Nextdoor CEO Nirav Tolia. Exhibi ...

Core Insights - The first quarter of 2025 has seen significant volatility in stock performance, with some stocks gaining up to 40% while others have declined nearly 30% [1][2] Teva Pharmaceutical - Teva Pharmaceutical is the worst-performing stock in the portfolio, down 27% in less than three months, primarily due to disappointing guidance in its fourth quarter earnings report [3][4] - Despite slightly beating revenue and earnings expectations, the company's guidance for 2025 earnings of $2.65 per share was significantly lower than anticipated, leading to a sharp decline in stock price [4] - Teva aims for "accelerated growth" from 2025 to 2027 by focusing on generics, expanding margins, and innovative launches, with a current valuation of 6.3 times forward earnings estimates indicating potential upside if management meets its goals [5] Block - Block is the second worst-performing stock, down 26% this year, largely due to its earnings report which missed expectations on both revenue and earnings, with year-over-year revenue growth of less than 5% [6][7] - Increased competition from other payment processors, particularly those with specialized capabilities, has raised concerns among investors [7] - Block is focusing on enhancing its lending capabilities, having acquired Afterpay and recently launching Cash App Borrow, along with developing an open bitcoin mining system called Proto [8] Nextdoor - Nextdoor has also seen a 26% decline in stock price, despite a 17% year-over-year revenue growth and positive adjusted EBITDA for the first time as a public company [10] - The company has a strong cash position of $427 million with no debt, yet its average revenue per U.S. daily active user is significantly lower than competitors like Pinterest [9][10] - Investors are skeptical about the company's vision to reinvent the platform as NEXT, which includes local-focused content and AI-powered recommendations, especially given the forecast for flat revenue and a significant adjusted EBITDA loss in the first quarter [11][12] Investment Opportunities - All three stocks—Teva, Block, and Nextdoor—are considered solid investment opportunities despite their current performance issues [13] - Teva is viewed as having long-term potential with a cheap valuation, while Nextdoor could be a significant growth opportunity if its leadership executes effectively [14] - Block has been identified as a stock where additional shares have been purchased in 2025, indicating confidence in its growth potential [14]

Financial Data and Key Metrics Changes - Weekly active users (WAU) increased by 10% year-over-year, reaching 45.9 million [10] - Revenue grew by 17% year-over-year to $65 million [10] - Achieved positive adjusted EBITDA and operating cash flow for the first time [10][33] - Adjusted EBITDA for Q4 was $3 million, representing a 5% margin, with a 30 percentage point year-over-year improvement [34] - Operating cash flow was $11 million, reflecting strong cash flow conversion [34] - Ended the year with $427 million in cash and equivalents, with zero debt [35] Business Line Data and Key Metrics Changes - Revenue growth was driven by self-serve advertisers and improved revenue retention [31] - Average revenue per weekly active user (ARPU) grew by 7% year-over-year to $1.42 [31] - Self-serve advertisers experienced a 47% lower cost per click compared to non-optimized campaigns [32] Market Data and Key Metrics Changes - New user acquisition remained strong, particularly in the U.S. [28] - Fastest growth in new users was observed among those aged 18 to 34 [28] Company Strategy and Development Direction - The company is focused on transforming the user experience through a new initiative called NEXT, which aims to improve local content, alerts, and recommendations [15][25] - The strategy includes moving away from incremental optimizations to fully committing to the NEXT initiative [13] - The company is intentionally making short-term trade-offs to prioritize long-term value, which may impact near-term metrics [24][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for deeper engagement with existing users and the opportunity to reconnect with inactive users through the NEXT initiative [30][50] - The company anticipates some short-term impacts on user engagement and ad impressions due to the transition to NEXT [24][39] - Management is confident that the decisions made will drive durable growth for the long term [41][98] Other Important Information - The company repurchased 31 million shares, reducing the fully diluted share count by 5% year-over-year [35] - The company is on track to launch NEXT by mid-2025 [25][39] Q&A Session Summary Question: User engagement focus versus broader user growth - Management emphasized the importance of deepening engagement with the existing user base rather than solely focusing on new user acquisition, aiming for more frequent and deeper interactions [44][50] Question: Ad impression headwinds - Management indicated that the reduction in ad impressions is expected to be a headwind in Q1 but will be absorbed as the year progresses [45][51] Question: Local community content integration - Management confirmed that they are actively securing partnerships with local news publishers to enhance content offerings, with thousands already established [58][60] Question: Large advertisers' spending shifts - Management acknowledged the shift towards programmatic ad buying among large advertisers and is focused on improving ease of use and performance for these advertisers [64][66] Question: User growth and engagement strategies - Management highlighted the growth from younger demographics and the importance of optimizing engagement strategies to drive user growth [70][72] Question: Operating leverage and marketing strategy - Management discussed the strategic shift towards organic growth and the reduction in sales and marketing expenses, focusing on improving product offerings [76][82] Question: Confidence in long-term growth despite short-term trade-offs - Management provided insights into qualitative and quantitative feedback from users, indicating early positive signals from the new content strategy [85][89] Question: First half 2025 revenue guidance - Management explained that the revenue guidance reflects intentional decisions around ad supply and user engagement strategies, with expectations for growth in the second half of the year [92][96]

Nextdoor Holdings, Inc (NYSE:KIND) Q4 2024 Results Conference Call February 27, 2025 5:00 PM ET Company Participants John T. Williams - Head of Investor Relations Nirav Tolia - Chief Executive Officer Matt Anderson - Chief Financial Officer Conference Call Participants Eric Sheridan - Goldman Sachs Jason Kreyer - Craig-Hallum Jamesmichael Sherman-Lewis - Citi Rohit Kulkarni - Roth Capital Operator Good afternoon. My name is Elliot, and I will be your conference operator today. At this time, I would like to ...

Nextdoor Holdings, Inc. (KIND) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post a loss of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of 20%.Over the last four quarters, the company has surpas ...

Company Overview - The company has a limited operating history at its current scale, making it difficult to evaluate its business and future prospects [63]. - The company operates in over 340,000 neighborhoods globally, providing a platform for local connections [353]. - The company’s financial results are reported based on a single reportable segment, aligning with the CEO's review for operational decisions [353]. Revenue Generation - The company generates substantially all of its revenue from advertising, which is currently derived from online display advertisements, including sponsored posts and local deals [66]. - Economic conditions in the United States significantly impact the company's performance, as the majority of its revenue comes from U.S. advertisers [65]. - The company is still in the early stages of monetizing its platform and faces challenges in increasing neighbor engagement and attracting advertisers [64]. - If the company fails to add new neighbors or retain current ones, its financial performance will be adversely impacted [74]. - The company must continue to develop and improve its products for advertisers to maintain revenue growth and attract new advertisers [70]. Competition and Market Challenges - The company faces significant competition from major players like Meta and Alphabet, which could impact user engagement and advertiser retention [77]. - Competitors leverage broader product offerings and economies of scale, potentially making their advertising products more attractive [78]. - The company faces risks from macroeconomic conditions, including inflation and potential recessions, which could lead to decreased advertiser spending [65]. - The company faces risks from ad-blocking technologies that could prevent the display of advertisements, which are a primary revenue source [119]. Regulatory and Compliance Issues - Changes in privacy regulations and platform policies, such as Apple's iOS updates, may hinder the company's ability to track users and measure ad effectiveness [79]. - The company is subject to various U.S. and foreign laws regarding data privacy, which may increase operational costs and liability risks [164]. - Over a third of U.S. states have enacted privacy laws similar to the CCPA, increasing compliance challenges and potential liabilities [166]. - The Digital Services Act (DSA) in the EU, effective February 2024, may limit targeted advertising and impose compliance costs, impacting financial results [162]. - The company may incur substantial costs in defending against claims related to user-generated content, which could harm financial condition [157]. Financial Performance - The company reported net losses of $98.1 million, $147.8 million, and $137.9 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $864.1 million as of December 31, 2024 [145]. - Revenue for the year ended December 31, 2024, was $247,276,000, representing a 13.3% increase from $218,309,000 in 2023 [342]. - Net loss for 2024 was $98,063,000, a decrease from a net loss of $147,765,000 in 2023, indicating an improvement in financial performance [343]. - The company anticipates an increase in operating expenses and capital expenditures as it continues to invest in acquiring additional users, increasing engagement, and expanding operations internationally [145]. Operational Challenges - The company must effectively scale its technical infrastructure to accommodate growing demands, or risk losing user engagement and revenue growth [83]. - A substantial portion of the company's network infrastructure relies on third-party providers, increasing vulnerability to service disruptions [84]. - The company has implemented restructuring plans in 2024 to reduce operational costs and improve efficiency, including workforce reductions [90]. - The company faces intense competition for skilled personnel, particularly in the San Francisco Bay Area, which may impact its ability to execute business strategy [107]. Intellectual Property and Legal Risks - The company relies on a combination of legal protections for its intellectual property, but challenges to these rights could harm its competitive position [188]. - The company may face legal claims regarding the infringement of third-party intellectual property rights, which could damage its brand and result in liability [195]. - The company is involved in ongoing legal disputes related to intellectual property, which could result in costly litigation and impact its business operations [173]. Future Outlook and Strategic Initiatives - The company has introduced the NEXT initiative aimed at transforming its platform to enhance user engagement and attract advertisers [75]. - The company is investing in AI initiatives to enhance product features and advertising tools, facing significant competition and regulatory scrutiny [94]. - Future international expansion will place additional demands on resources and operations, requiring improved IT and financial infrastructure [87]. - The company may require additional capital in the future, which may not be available on favorable terms, potentially impacting growth and operational capabilities [104].

Financial Performance - Q4 2024 revenue reached $65 million, a 17% year-over-year increase, driven by performance-optimized campaigns for self-serve advertisers [16] - Full-year 2024 revenue grew 13%, with WAU increasing by 8% year-over-year, reflecting improvements in content relevance and advertising platform investments [25] - Revenue for Q4 2024 was $65,228,000, an increase of 17.5% compared to $55,557,000 in Q4 2023 [51] - Total revenue for the year ended December 31, 2024, was $247,276,000, up 13.3% from $218,309,000 in 2023 [51] - The company expects Q1 2025 revenue of approximately $53 million, with year-over-year revenue growth in the first half of 2025 expected to be flat [40] User Engagement - Weekly Active Users (WAU) grew 10% year-over-year to 45.9 million, supported by steady organic U.S. user acquisition and improved notification delivery [17] - The company is focusing on attracting younger audiences, particularly those aged 18-34, whose usage habits align with the evolving platform [20] - The company expects to implement its NEXT initiative, which aims to enhance user engagement and growth [45] - The company anticipates growth in its Verified Neighbor program, contributing to future performance [45] Profitability and Expenses - Adjusted EBITDA for Q4 was $3 million, representing a 5% margin and a 30 percentage point year-over-year improvement [17] - The company reduced GAAP and non-GAAP operating expenses by 6% and 9% respectively in 2024, while increasing adjusted EBITDA margin by 27 percentage points year-over-year [26] - The net loss for Q4 2024 was $12,123 thousand, a significant improvement from a net loss of $40,530 thousand in Q4 2023, resulting in a margin of -19% compared to -73% [56] - Adjusted EBITDA for the year ended December 31, 2024, was -$18,207 thousand, an improvement from -$74,107 thousand in 2023, reflecting a margin of -7% versus -34% [56] - Total operating expenses for Q4 2024 were $82,325 thousand, down from $103,211 thousand in Q4 2023, with non-GAAP operating expenses at $61,860 thousand compared to $69,620 thousand [56] Cash and Assets - The cash balance at year-end was $427 million, with zero debt, and the company repurchased 31 million shares at an average price of $2.44 [27] - Cash and cash equivalents decreased to $45,550,000 as of December 31, 2024, from $60,233,000 in 2023 [50] - Total assets decreased to $513,953,000 as of December 31, 2024, down from $654,564,000 in 2023 [50] - Total liabilities decreased to $60,465,000 as of December 31, 2024, compared to $96,007,000 in 2023 [50] Strategic Initiatives - The launch of NEXT is on track for mid-2025, which is anticipated to redefine the user experience and impact short-term business results [12] - The company is focusing on expanding its operations into new markets as part of its strategic objectives [45] - The Nextdoor Ads Platform drove significant performance improvements, with a 47% lower cost per click (CPC) compared to non-optimized campaigns [22] Restructuring and Compensation - The company reported restructuring charges of $25,578 thousand for the year ended December 31, 2024, compared to $9,888 thousand in 2023, indicating increased restructuring efforts [56] - Stock-based compensation for the year ended December 31, 2024, was $74,055 thousand, down from $83,025 thousand in 2023, indicating a focus on managing compensation expenses [56] - The company aims to improve its financial metrics by focusing on reducing operating expenses and managing stock-based compensation in the upcoming quarters [56]