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Jun 30, 2024
Nextdoor Q2 2024 Earnings Report
Revenue and user growth improved, margins also improved.
Key Takeaways
Nextdoor's Q2 2024 showed improvements in revenue and weekly active users. The company is focused on revitalizing its platform and improving business execution. Revenue grew by 11% year-over-year, and weekly active users increased by 8%. Adjusted EBITDA also improved significantly.
Q2 revenue grew +11% year-over-year to $63 million, driven by improved self-serve revenue retention and strong agency spend momentum.
Q2 Weekly Active Users (WAU) reached 45.1 million, growing +8% year-over-year.
Adjusted EBITDA improved by 23 percentage points year-over-year.
The company repurchased 18 million shares for $44 million during the quarter.
Forward Guidance
Nextdoor provided financial outlook for FY 2024 and Q3 2024.
Positive Outlook
- FY 2024 revenue growth is expected to be approximately 10% year-over-year.
- FY 2024 adjusted EBITDA margin improvement is expected to approach 20 percentage points year-over-year.
- The company expects to generate positive quarterly free cash flow in Q4 2024.
- AI has the potential to increase user engagement, improve advertiser performance, and unlock operational efficiencies.
- The NEXT initiative is underway and is expected to help unlock the product’s full potential.
Challenges Ahead
- Q3 2024 revenue is expected to be approximately $62 million.
- Q3 2024 adjusted EBITDA loss is expected to be approximately $(8) million.
- Transformation of the platform is a complex and time-consuming process.
- Meaningful signs of product-related progress are not expected until mid-2025.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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