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Nextdoor (KIND) - 2024 Q4 - Annual Results
KINDNextdoor (KIND)2025-02-27 21:06

Financial Performance - Q4 2024 revenue reached 65million,a1765 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 55,557,000inQ42023[51]−TotalrevenuefortheyearendedDecember31,2024,was55,557,000 in Q4 2023 [51] - Total revenue for the year ended December 31, 2024, was 247,276,000, up 13.3% from 218,309,000in2023[51]−ThecompanyexpectsQ12025revenueofapproximately218,309,000 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 3million,representinga53 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 40,530thousandinQ42023,resultinginamarginof−1940,530 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 -74,107thousandin2023,reflectingamarginof−774,107 thousand in 2023, reflecting a margin of -7% versus -34% [56] - Total operating expenses for Q4 2024 were 82,325 thousand, down from 103,211thousandinQ42023,withnon−GAAPoperatingexpensesat103,211 thousand in Q4 2023, with non-GAAP operating expenses at 61,860 thousand compared to 69,620thousand[56]CashandAssets−Thecashbalanceatyear−endwas69,620 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]−Cashandcashequivalentsdecreasedto2.44 [27] - Cash and cash equivalents decreased to 45,550,000 as of December 31, 2024, from 60,233,000in2023[50]−Totalassetsdecreasedto60,233,000 in 2023 [50] - Total assets decreased to 513,953,000 as of December 31, 2024, down from 654,564,000in2023[50]−Totalliabilitiesdecreasedto654,564,000 in 2023 [50] - Total liabilities decreased to 60,465,000 as of December 31, 2024, compared to 96,007,000in2023[50]StrategicInitiatives−ThelaunchofNEXTisontrackformid−2025,whichisanticipatedtoredefinetheuserexperienceandimpactshort−termbusinessresults[12]−Thecompanyisfocusingonexpandingitsoperationsintonewmarketsaspartofitsstrategicobjectives[45]−TheNextdoorAdsPlatformdrovesignificantperformanceimprovements,witha4796,007,000 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 9,888thousandin2023,indicatingincreasedrestructuringefforts[56]−Stock−basedcompensationfortheyearendedDecember31,2024,was9,888 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]