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Dec 31, 2023
Nextdoor Q4 2023 Earnings Report
Q4 finished with renewed strength, driven by WAU growth, stronger impression growth, higher average spend by small and mid-sized advertisers, a return to growth in home services, and lower marketing and personnel costs.
Key Takeaways
Nextdoor's Q4 2023 saw revenue increase by 4% year-over-year to $56 million. Weekly Active Users (WAU) grew 5% year-over-year to 41.8 million. The company's cost reduction plan contributed to adjusted EBITDA margin improvement. The company ended the year with $531M in cash and cash equivalents and marketable securities.
Q4 revenue increased 4% year-over-year to $56M.
Q4 Weekly Active Users (WAU) grew 5% year-over-year and 3% quarter-over-quarter to 41.8 million.
Q4 ARPU of $1.33 was stable year-over-year.
Self-serve revenue now exceeds 40% of total revenue.
Forward Guidance
Nextdoor provided financial guidance for Q1 2024 and FY 2024, expecting revenue growth and adjusted EBITDA margin improvement. The company expects Q1 2024 revenue in a range between $50 million–$51 million and Q1 2024 adjusted EBITDA loss will be approximately ($20) million.
Positive Outlook
- We expect Q1 WAU to increase quarter-over quarter, driven by continued strong organic Verified Neighbor growth.
- We expect further increases in session depth will yield strong growth in ad impression opportunities, positively impacting our full-year revenue growth rate.
- Our expected 2024 year-over-year Adjusted EBITDA margin improvement will be driven largely by savings related to the cost reduction plan implemented in Q4 2023.
- Our board has authorized a $150M increase to our share repurchase program, and we intend to repurchase shares at what we believe is currently an attractive valuation level.
- we expect to limit dilution in 2024 and beyond.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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