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Sep 30, 2024
Nextdoor Q3 2024 Earnings Report
Showed solid improvements in business results and advanced the future of Nextdoor with NEXT.
Key Takeaways
Nextdoor's Q3 2024 saw revenue growth of 17% year-over-year to $66 million, driven by improvements in the Nextdoor Ads Platform and a return to growth for enterprise advertisers. Weekly Active Users (WAU) grew by 13% year-over-year to 45.9 million. The company's adjusted EBITDA improved significantly, reaching ($1 million), and they are raising their full-year guidance for revenue and adjusted EBITDA.
Revenue grew +17% year-over-year, driven by self-serve revenue momentum and enterprise advertisers.
Weekly Active Users (WAU) grew +13% year-over-year, reflecting sustained organic user acquisition.
Adjusted EBITDA improved significantly, representing 33 percentage points of year-over-year margin improvement.
The company is focused on expanding its advertising capabilities and improving user engagement through the NEXT initiative.
Forward Guidance
Nextdoor provided financial outlook for Q4 2024 and full year 2024.
Positive Outlook
- Expects FY 2024 revenue of $245 million, implying 12% year-over-year growth.
- Expects FY 2024 adjusted EBITDA margin improvement approaching 25 percentage points year-over-year.
- Expects Q4 2024 revenue of $63 million, implying 13% year-over-year growth.
- Expects to generate positive free cash flow in Q4 2024.
- Consistently generated approximately $5M of quarterly interest income, and expect changes in net working capital will be favorable.
Challenges Ahead
- Expects Q4 2024 adjusted EBITDA loss of $2 million.
- Natural seasonality related to home services spending may impact Q4 results.
- Forward-looking statements are subject to risks and uncertainties.
- The implementation and potential impact of NEXT initiative is uncertain.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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