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Nextdoor
🇺🇸 NYSE:KIND
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Sep 30, 2023

Nextdoor Q3 2023 Earnings Report

Revenue increased due to SMB growth, WAU grew, and ARPU declined.

Key Takeaways

Nextdoor's Q3 2023 saw revenue increase by 4% year-over-year to $56 million, driven by growth from small and medium-sized businesses. Weekly Active Users (WAU) grew 6% year-over-year to 40.4 million, but declined 3% quarter-over-quarter due to deliberate limitations on notification volumes. ARPU declined 2% year-over-year to $1.39.

Q3 revenue increased 4% year-over-year to $56M, driven by SMB growth.

Weekly Active Users (WAU) grew 6% year-over-year to 40.4 million.

ARPU declined 2% year-over-year to $1.39.

Organic Verified Neighbors additions were the highest in Nextdoor's history.

Total Revenue
$56.1M
Previous year: $54M
+4.0%
EPS
-$0.1
Previous year: -$0.09
+11.1%
Weekly Active Users
40.4M
Previous year: 38.3M
+5.5%
Gross Profit
$45.4M
Previous year: $44.1M
+2.9%
Cash and Equivalents
$48.4M
Previous year: $90.7M
-46.6%
Free Cash Flow
-$18.4M
Previous year: -$13.6M
+35.9%
Total Assets
$670M
Previous year: $714M
-6.1%

Nextdoor

Nextdoor

Forward Guidance

Nextdoor anticipates Q4 2023 revenue to be in the range of $50 million to $52 million and adjusted EBITDA to be in the range of ($21) million to ($19) million, excluding one-time expenses. For the full year 2023, revenue is expected to be between $213 million and $215 million, with adjusted EBITDA between ($81) million and ($79) million, also excluding one-time expenses.

Positive Outlook

  • Adding more Verified Neighbors in 2024 than in 2023, with the majority coming organically.
  • Delivering improved formats, targeting and tools for advertisers, and improved yield on our ad inventory.
  • Introducing the ability for Nextdoor Ads Manager advertisers to create and run video ads and lead generation ad campaigns served by Nextdoor Ad Server in Q4.
  • Migrating an increasing amount of ads delivery for Nextdoor Ads Manager campaigns to Nextdoor Ad Server in Q4, with a goal of serving substantially all demand by the end of the year.
  • Offering delivery optimization capabilities to all Nextdoor Ads Manager advertisers by mid-2024.

Challenges Ahead

  • Weaker-than-expected growth from US direct-sold advertisers.
  • Home services spending on the platform slowed.
  • Financial services remained challenged.
  • Weaker enterprise demand trends will likely persist for at least the coming quarters, constraining near-term revenue growth.
  • Revenue growth to be approximately flat for the full year 2023.

Company Overview

Full financial data and analysis

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