Nextdoor Reports First Quarter 2024 Results
May 07 2024 - 4:05PM
Business Wire
- Revenue of $53 million, +7% year-over-year; Q1 WAU of 43.4
million, +2% year-over-year
- GAAP net loss of $28 million; Operating cash flow of $(14)
million; Adjusted EBITDA margin improved by 17 percentage points
year-over-year
- Raises full-year Adjusted EBITDA guidance; Now expects positive
free cash flow1 in Q4'24
May 7, 2024--Nextdoor Holdings, Inc. (NYSE: KIND) today
announced financial results for the first quarter ended March 31,
2024.
Nextdoor's highlighted metrics for the quarter ended March 31,
2024 include:
- Total Weekly Active Users (WAU) of 43.4 million increased 2%
year-over-year.
- Revenue of $53 million increased 7% year-over-year.
- Net loss was $28 million, compared to $34 million in the
year-ago period.
- Adjusted EBITDA loss was $14 million, compared to $22 million
in the year-ago period.
- Ending cash, cash equivalents, and marketable securities were
$498 million as of March 31, 2024.
"Q1 was a promising start to the year. WAU grew to 43.4 million,
up 2% year-over-year and 4% sequentially, and engagement remains
strong, as session depth improved by 36% year-over-year," said
Nextdoor Executive Chair and incoming CEO Nirav Tolia.
"Our advertising platform is driving higher self-serve customer
spend and retention, our reduced cost base is unlocking margin
improvement, and our balance sheet, with nearly $500 million of
cash and investments, remains a strength. Given that momentum, we
have increased our full-year adjusted EBITDA guidance and
accelerated our timeline for generating positive free cash flow by
12 months. I am excited about our trajectory and renewed focus, and
am confident that Nextdoor is well-positioned for the next phase of
our growth."
For more detailed information on our operating and financial
results for the first quarter ended March 31, 2024, as well as our
outlook for Q2 and fiscal year 2024, please reference our
Shareholder Letter posted to our Investor Relations website located
at investors.nextdoor.com. ______________________ 1 We define free
cash flow as operating cash flow less capital expenditures.
Three Months Ended March
31,
(in thousands)
2024
2023
Revenue
$
53,146
$
49,771
Loss from operations
$
(34,749
)
$
(38,812
)
Net loss
$
(28,261
)
$
(33,716
)
Adjusted EBITDA(1)
$
(14,015
)
$
(21,661
)
(1) The following is a reconciliation of net loss, the most
comparable GAAP measure, to adjusted EBITDA for the periods
presented above:
Three Months Ended March
31,
(in thousands)
2024
2023
Net loss
$
(28,261
)
$
(33,716
)
% Margin
(53
)%
(68
)%
Depreciation and amortization
1,387
1,451
Stock-based compensation
19,506
15,816
Interest income
(6,846
)
(5,513
)
Provision for income taxes
199
301
Adjusted EBITDA
$
(14,015
)
$
(21,661
)
% Margin
(26
)%
(44
)%
Nextdoor will host a conference call at 2:00 p.m. PT/5:00 p.m.
ET today to discuss these results and outlook. A live webcast of
our first quarter 2024 earnings release call will be available in
the Events & Presentations section of Nextdoor’s Investor
Relations website. After the live event, the audio recording for
the webcast can be accessed on the same website for approximately
one year.
Nextdoor uses its Investor Relations website
(investors.nextdoor.com), its X handle (twitter.com/Nextdoor), and
its LinkedIn Home Page (linkedin.com/company/nextdoor-com) as a
means of disseminating or providing notification of, among other
things, news or announcements regarding its business or financial
performance, investor events, press releases, and earnings
releases, and as a means of disclosing material nonpublic
information and for complying with its disclosure obligations under
Regulation FD.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared in accordance with GAAP, we present certain
non-GAAP financial measures, such as adjusted EBITDA and adjusted
EBITDA margin, in this press release. Our use of non-GAAP financial
measures has limitations as an analytical tool, and these measures
should not be considered in isolation or as a substitute for
analysis of financial results as reported under GAAP.
We use non-GAAP financial measures in conjunction with financial
measures prepared in accordance with GAAP for planning purposes,
including in the preparation of our annual operating budget, as a
measure of our core operating results and the effectiveness of our
business strategy, and in evaluating our financial performance.
Non-GAAP financial measures provide consistency and comparability
with past financial performance, facilitate period-to-period
comparisons of core operating results, and also facilitate
comparisons with other peer companies, many of which use similar
non-GAAP financial measures to supplement their GAAP results. In
addition, adjusted EBITDA is widely used by investors and
securities analysts to measure a company's operating performance.
We exclude the following items from one or more of our non-GAAP
financial measures: stock-based compensation expense (non-cash
expense calculated by companies using a variety of valuation
methodologies and subjective assumptions), depreciation and
amortization (non-cash expense), interest income, provision for
income taxes, and, if applicable, acquisition-related costs.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. In particular, (1) stock-based compensation
expense has recently been, and will continue to be for the
foreseeable future, a significant recurring expense for our
business and an important part of our compensation strategy, (2)
although depreciation and amortization expense are non-cash
charges, the assets subject to depreciation and amortization may
have to be replaced in the future, and our non-GAAP measures do not
reflect cash capital expenditure requirements for such replacements
or for new capital expenditure requirements, and (3) adjusted
EBITDA does not reflect: (a) changes in, or cash requirements for,
our working capital needs; (b) interest expense, or the cash
requirements necessary to service interest or principal payments on
our debt, which reduces cash available to us; or (c) tax payments
that may represent a reduction in cash available to us. The
non-GAAP measures we use may be different from non-GAAP financial
measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by
providing specific information regarding the GAAP items excluded
from these non-GAAP financial measures.
About Nextdoor
Nextdoor (NYSE: KIND) is the neighborhood network. Neighbors,
businesses of all sizes, and public agencies in more than 335,000
neighborhoods across 11 countries turn to Nextdoor to connect to
the neighborhoods that matter to them so that they can thrive. As a
purpose-driven company, Nextdoor leverages innovative technology to
cultivate a kinder world where everyone has a neighborhood they can
rely on — both online and in the real world. Download the app or
join the neighborhood at nextdoor.com. For more information and
assets, visit nextdoor.com/newsroom.
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version on businesswire.com: https://www.businesswire.com/news/home/20240507321545/en/
Nextdoor Investor Relations: John T. Williams ir@nextdoor.com or
visit investors.nextdoor.com Nextdoor Media Relations: Antonia Gray
press@nextdoor.com
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