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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.
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.
Historical Earnings Impact
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