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Dec 31, 2024
Nextdoor Q4 2024 Earnings Report
Expected Revenue:$63.1M
+23.3% YoY
Expected EPS:-$0.04
+63.6% YoY
Key Takeaways
Nextdoor had a strong Q4 2024 with revenue increasing 17% year-over-year, adjusted EBITDA turning positive, and generating meaningful operating cash flow. User growth sustained as Weekly Active Users (WAU) increased 10% year-over-year.
Revenue increased 17% year-over-year.
Adjusted EBITDA turned positive.
Operating cash flow was generated.
Weekly Active Users (WAU) increased 10% year-over-year.
Nextdoor
Nextdoor
Forward Guidance
First quarter revenue is expected to be approximately $53M and adjusted EBITDA loss of approximately ($13M). NEXT launch remains on track for mid-year 2025.
Positive Outlook
- Remain on track to deliver NEXT by mid-year 2025.
- Expect year-over-year revenue growth in the first half of 2025 will be approximately flat.
- The Nextdoor Ads Platform drove performance gains and unlocked new advertiser demand, leading to improving revenue growth as the year progressed.
- The company improved resource allocation, leading to sustained productivity improvements and enabling it to deliver positive adjusted EBITDA and operating cash flow in Q4.
- Ended the year with a strong cash position, and significant capital flexibility.
Challenges Ahead
- First, our revenue outlook reflects initial reductions in ad impression supply tied to our NEXT initiative roll out.
- Observed reduced spending among certain large advertisers as we’ve progressed through the quarter, partly tied to large advertisers shifting budgets toward programmatic ad buying.
- Expect Q1 revenue of approximately $53M.
- Expect Q1 adjusted EBITDA loss of approximately ($13M).
- The company is embracing changes that will affect guidance.