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Mar 31, 2022

Nextdoor Q1 2022 Earnings Report

Revenue increased due to neighbor engagement and US Newsfeed eCPMs, WAU grew reflecting acceleration, and ARPU grew due to session frequency and ad pricing.

Key Takeaways

Nextdoor's Q1 2022 showed strong growth with revenue increasing by 48% year-over-year to $51 million and weekly active users growing by 33% year-over-year to 36.7 million. ARPU also increased by 12% year-over-year to $1.39.

Q1 revenue grew 48% year-over-year to $51M, driven by increased neighbor engagement and strong U.S. Newsfeed eCPMs.

Q1 Weekly Active Users (WAU) grew 33% year-over-year to 36.7 million, reflecting a third consecutive quarter of acceleration, with continued momentum internationally.

Q1 ARPU grew 12% year-over-year to $1.39, driven by increases in session frequency per WAU and ad pricing.

Neighbors are increasingly engaged in their local communities, actively participating as a result of connections and recommendations made online.

Total Revenue
$51M
Previous year: $34.4M
+48.3%
EPS
-$0.09
Previous year: -$0.26
-65.4%
Weekly Active Users
36.7M
Gross Profit
$41.9M
Previous year: $28.1M
+49.5%
Cash and Equivalents
$208M
Previous year: $1.69M
+12239.2%
Free Cash Flow
-$6.15M
Previous year: -$2.69M
+129.0%
Total Assets
$822M
Previous year: $419M
+96.1%

Nextdoor

Nextdoor

Forward Guidance

Nextdoor provided guidance for Q2 2022 and FY 2022.

Positive Outlook

  • Q2 2022 Revenue is expected to be between $54M–$56M.
  • FY 2022 Revenue is expected to be between $252M–$256M.
  • Focus remains on growing base of neighbors and organizations.
  • Increasing engagement on the platform.
  • Delivering strong revenue performance to support reinvestment into the business for long-term growth.

Challenges Ahead

  • Q2 2022 Adjusted EBITDA loss is expected to be between $21M–$19M.
  • FY 2022 Adjusted EBITDA margin is expected to be (18%).
  • Broadened the range in light of the current macro environment.
  • Stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control.
  • The actual amount of these expenses during 2022 will have a significant impact on our future GAAP financial results.