Nextdoor Q4 2023 Earnings Report
Key Takeaways
Nextdoor's Q4 2023 saw revenue increase by 4% year-over-year to $56 million. Weekly Active Users (WAU) grew 5% year-over-year to 41.8 million. The company's cost reduction plan contributed to adjusted EBITDA margin improvement. The company ended the year with $531M in cash and cash equivalents and marketable securities.
Q4 revenue increased 4% year-over-year to $56M.
Q4 Weekly Active Users (WAU) grew 5% year-over-year and 3% quarter-over-quarter to 41.8 million.
Q4 ARPU of $1.33 was stable year-over-year.
Self-serve revenue now exceeds 40% of total revenue.
Nextdoor
Nextdoor
Forward Guidance
Nextdoor provided financial guidance for Q1 2024 and FY 2024, expecting revenue growth and adjusted EBITDA margin improvement. The company expects Q1 2024 revenue in a range between $50 million–$51 million and Q1 2024 adjusted EBITDA loss will be approximately ($20) million.
Positive Outlook
- We expect Q1 WAU to increase quarter-over quarter, driven by continued strong organic Verified Neighbor growth.
- We expect further increases in session depth will yield strong growth in ad impression opportunities, positively impacting our full-year revenue growth rate.
- Our expected 2024 year-over-year Adjusted EBITDA margin improvement will be driven largely by savings related to the cost reduction plan implemented in Q4 2023.
- Our board has authorized a $150M increase to our share repurchase program, and we intend to repurchase shares at what we believe is currently an attractive valuation level.
- we expect to limit dilution in 2024 and beyond.