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Mar 31, 2024
Nextdoor Q1 2024 Earnings Report
Nextdoor's Q1 2024 financial objectives were achieved, with accelerated revenue growth and improved adjusted EBITDA margin.
Key Takeaways
Nextdoor's Q1 2024 showed promising results with a 7% year-over-year revenue increase to $53 million, driven by strong self-serve advertiser retention and improvements in key verticals. The company also saw a 17 percentage point improvement in adjusted EBITDA margin and increased self-serve revenue to nearly 50% of total revenue.
Revenue grew by 7% year-over-year, reaching $53 million, driven by self-serve advertisers.
Weekly Active Users (WAU) increased to 43.4 million, a 2% year-over-year and 4% quarter-over-quarter growth.
ARPU grew by 4% year-over-year to $1.22, driven by enhanced self-serve capabilities and increased session depth.
Adjusted EBITDA margin improved by 17 percentage points year-over-year, driven by higher revenue and lower costs.
Forward Guidance
Nextdoor provided financial outlook for Q2 2024 and updated its full year 2024 outlook.
Positive Outlook
- FY 2024 revenue is expected to be in the range of $229 million to $235 million.
- FY 2024 adjusted EBITDA margin is expected to improve by 15 percentage points year-over-year.
- The company expects to generate positive free cash flow in Q4 2024.
- Q2 2024 revenue is expected to be approximately $58 million.
- Full year 2024 operating expenses are expected to be lower than full year 2023.
Challenges Ahead
- Q2 2024 adjusted EBITDA loss is expected to be approximately ($13) million.
- Expected FY 2024 year-over-year adjusted EBITDA margin improvement will be driven by savings related to our Q4’23 cost reduction plan, savings related to reduced rent and corporate restructuring, and additional efficiencies and productivity improvements.
- We continue to repurchase shares, and expect limited FY 2024 share dilution.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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