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Jun 30, 2023

Nextdoor Q2 2023 Earnings Report

Returned to revenue growth and adjusted EBITDA margin expansion.

Key Takeaways

Nextdoor's Q2 2023 shows a return to revenue growth, increasing 4% year-over-year to $57 million. The company is focused on growing its base of neighbors and organizations, increasing engagement, and building its ad platform to support customers of all sizes.

Q2 revenue of $57M increased 4% year-over-year, driven by strength from mid-market customers, small businesses, and agency partnerships.

Q2 Weekly Active Users (WAU) of 41.6 million grew 13% year-over-year.

Q2 ARPU of $1.37 declined 7% year-over-year.

Adjusted EBITDA of ($19M) represented a 4-point margin improvement year-over-year and and 11-point improvement quarter-over-quarter.

Total Revenue
$56.9M
Previous year: $54.5M
+4.3%
EPS
-$0.09
Previous year: -$0.1
-10.0%
Weekly Active Users
41.6M
Previous year: 36.9M
+12.7%
Gross Profit
$46.5M
Previous year: $44.4M
+4.7%
Cash and Equivalents
$74.3M
Previous year: $40.2M
+84.8%
Free Cash Flow
-$12.4M
Previous year: -$23.3M
-46.7%
Total Assets
$684M
Previous year: $793M
-13.8%

Nextdoor

Nextdoor

Forward Guidance

Nextdoor anticipates Q3 2023 revenue growth to align with Q2 2023, around 4% year-over-year, with an adjusted EBITDA loss between $21M–$20M. For the full year 2023, they project an acceleration in Q4 year-over-year revenue growth, implying mid-single-digit year-over-year growth, and expect to deliver adjusted EBITDA margin improvement while maintaining low single-digit sequential operating expense growth in the second half of the year.