About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - Nextdoor has introduced AI-driven ad performance optimization and new video ad formats to enhance its advertising platform, Nextdoor Advertising Manager (NAM), aiming to maximize efficiency in reaching hyperlocal audiences [1][5] Advertising Innovations - The new advertising suite allows brands to connect with over 100 million high-intent neighbors across 345,000 neighborhoods, enhancing relevance and impact [2][5] - Innovations include click and conversion optimization powered by AI, which has shown a 134% average lift in click-through rates (CTR) and a 35% improvement in average cost per acquisition (CPA) during initial testing [4] AI and Personalization Features - AI targeting and delivery recommendations are being piloted to improve campaign performance through personalized insights [4] - AI-powered image and copy generation enables advertisers to create relevant ads quickly, utilizing a vast library of images [4] - Geo-personalization in image ads allows brands to automatically include local names in their creatives, increasing local relevance [9] Video Advertising Enhancements - New flexible video ad formats are being introduced globally, allowing for deeper engagement through various placements and enhanced reporting metrics [4] Contextual Advertising - Weather targeting features allow advertisers to align their campaigns with local weather conditions, providing timely and relevant messaging [9]

Core Insights - Nextdoor and Waze have formed a partnership to provide real-time traffic and road alerts to local communities, enhancing neighborhood connectivity and safety [1] Company Overview - Nextdoor is a social networking service for neighborhoods, aiming to foster community engagement and communication among residents [1] - Waze is a GPS navigation software that offers real-time traffic and road information, helping users navigate efficiently [1] Partnership Details - The collaboration between Nextdoor and Waze will enable users to receive timely alerts about traffic conditions and road incidents, promoting safer driving and informed travel decisions [1] - This partnership is expected to strengthen the utility of both platforms by integrating community-driven insights with real-time navigation data [1]

Group 1: Earnings Performance - Nextdoor Holdings, Inc. reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.06, representing an earnings surprise of +66.67% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Nextdoor's revenues for the quarter ended September 2025 were $68.9 million, exceeding the Zacks Consensus Estimate by 3.09%, and up from $65.61 million a year ago [2] Group 2: Stock Performance and Outlook - Nextdoor shares have declined approximately 23.6% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $67.11 million, and -$0.19 on revenues of $253.97 million for the current fiscal year [7] Group 3: Industry Context - The Internet - Software industry, to which Nextdoor belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Nextdoor's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $69 million, representing a 5% year-over-year growth, marking the highest quarterly revenue ever for the company [4] - Q3 adjusted EBITDA was $4 million, reflecting a positive 6% margin and an 8-point year-over-year improvement [6] - GAAP net loss for Q3 was $13 million, with revenue per employee increasing by 21% year-to-date [6] Business Line Data and Key Metrics Changes - Self-serve revenue grew by 33% year-over-year, accounting for approximately 60% of total revenue [5] - The active customer base and associated net new advertiser spend also increased, indicating strong demand for the self-serve advertising platform [5] Market Data and Key Metrics Changes - Platform WOW (users engaging directly on the app or website) was 21.6 million, showing a modest sequential decline due to a strategic reduction in notifications and email volumes [5] - The company expects Q4 revenue to be between $67 million and $68 million, with adjusted EBITDA projected between $3.5 million and $4.5 million [6][7] Company Strategy and Development Direction - The company is focused on building a stronger neighborhood ecosystem by enhancing user-generated content and local information [9][10] - Plans to reinvent the recommendations ecosystem to turn authentic word-of-mouth into actionable insights for users and local businesses [10] - The company aims to avoid increasing ad load and will intentionally reduce new user acquisition efforts in Q4 to prioritize user experience [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation of the platform, emphasizing the importance of increasing high-quality content to drive engagement [17] - The company remains committed to achieving full-year adjusted EBITDA break-even in 2026, despite a projected adjusted EBITDA loss of approximately $3 million for 2025 [6][7] - Management highlighted the importance of making necessary trade-offs for long-term sustainable growth [33] Other Important Information - The company announced the hiring of Indrajit Panambalan as the new Chief Financial Officer, effective December 1, 2025 [11] - The company has completed its programmatic supply integrations, enabling deeper collaboration with advertisers [4][25] Q&A Session Summary Question: Insights on customer engagement and depth of engagement metric - Management noted that the new Nextdoor platform has seen news content approaching 10% of the feed, with a focus on increasing high-quality content to drive deeper engagement [16][17] Question: User acquisition strategies evolving into 2026 - Management indicated a focus on improving the first-time user experience and a less aggressive approach to new user acquisition in the short term [18][19] Question: Source of additional content - Management confirmed that they are looking to increase user-generated content while also integrating more third-party publisher content [23] Question: Update on programmatic capabilities - Management stated that they have completed the supply-side platform integration and are currently testing with demand-side platforms, including a deal with Yahoo [25][26] Question: Engagement from alerts and notifications - Management reported that reducing notifications has led to more effective alerts, which are helping to re-engage users who may not have visited the platform recently [30][31]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $69 million, representing a 5% year-over-year growth, marking the highest quarterly revenue ever for the company [4] - Q3 GAAP net loss was $13 million, while Adjusted EBITDA was $4 million, reflecting a positive 6% margin and an 8-point year-over-year improvement [6] - Revenue per employee increased by 21% year-to-date, with cash, cash equivalents, and marketable securities totaling $403 million and zero debt at quarter end [6] Business Line Data and Key Metrics Changes - Self-serve revenue grew by 33% year-over-year, accounting for approximately 60% of total revenue, driven by strong demand from advertisers [5] - The active customer base and associated net new advertiser spend also saw growth, indicating effective ad stack investments [5] Market Data and Key Metrics Changes - Platform WOW (users engaging directly on the app or website) was 21.6 million, showing a modest sequential decline due to a strategic reduction in notification and email volumes [5] - The company plans to maintain its current ad load and intentionally reduce new user acquisition efforts in Q4 to enhance user experience [7] Company Strategy and Development Direction - The company is focused on building a stronger neighborhood ecosystem by increasing high-quality content and enhancing user engagement [9][10] - Plans to reinvent the recommendations ecosystem to turn authentic word-of-mouth into actionable insights for users and local businesses [10] - The strategy emphasizes long-term sustainable growth over short-term metrics, with a commitment to product quality and user experience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation of the platform, highlighting the importance of user-generated content and local information [8][9] - The company expects Q4 revenue between $67 million and $68 million, with an Adjusted EBITDA range of $3.5 million to $4.5 million, indicating a focus on maintaining operational efficiency [6][7] - Full-year 2025 revenue growth is projected at 3%-4%, with expectations for Adjusted EBITDA break-even in 2026 [7] Other Important Information - A new Chief Financial Officer, Indrajit Ponnambalam, will join the company effective December 1, 2025, bringing extensive experience in finance and operations [11] Q&A Session Summary Question: Insights on customer engagement and depth of engagement metrics - Management noted that the new Nextdoor platform has seen news content approaching 10% of the feed, with a focus on increasing high-quality content to drive deeper engagement [16][17] Question: User acquisition strategies evolving into 2026 - The company plans to enhance the first-time user experience and will not aggressively pursue new user acquisition in the short term [18][19] Question: Sources of additional content - Management indicated a focus on increasing user-generated content while also integrating more third-party alerts, with 4,000 publishers currently providing news content [23] Question: Update on programmatic capabilities - The company has completed supply-side platform integration and is testing with demand-side platforms, including a deal with Yahoo for programmatic advertising [25][26] Question: Engagement from alerts and notifications - Management confirmed that reducing notifications has led to more effective alerts, which are helping to re-engage lapsed users [30][31]

Financial Data and Key Metrics Changes - Q3 revenue reached $69 million, a 5% year-over-year increase, marking the highest quarterly revenue ever for the company [4] - Q3 adjusted EBITDA was $4 million, representing a positive 6% margin and an 8-point year-over-year improvement [6] - Q3 GAAP net loss was $13 million, with expectations for a full-year adjusted EBITDA loss of approximately $3 million [6][7] - The company had $403 million in cash, cash equivalents, and marketable securities, with zero debt at quarter end [6] Business Line Data and Key Metrics Changes - Self-serve revenue grew 33% year-over-year, accounting for roughly 60% of total revenue [5] - The active customer base and associated net new advertiser spend increased, indicating strong demand for the self-serve ads platform [5] Market Data and Key Metrics Changes - Platform WOW (users engaging directly on the app or website) was 21.6 million, showing a modest sequential decline due to reduced notification and email volumes [5] - The company plans to maintain its current ad load and reduce new user acquisition efforts in Q4 to focus on user experience [7] Company Strategy and Development Direction - The company is focused on building a stronger neighborhood ecosystem by increasing high-quality content and enhancing user engagement [9][10] - Plans to reinvent the recommendations ecosystem to turn authentic word-of-mouth into actionable insights for users and local businesses [10] - The company aims for full-year adjusted EBITDA break-even in 2026, emphasizing long-term value creation over short-term metrics [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation of the platform, highlighting the importance of user-generated content and local information [8][9] - The company acknowledged past challenges with content relevance and is committed to improving user experience and engagement [30] Other Important Information - A new Chief Financial Officer, Indrajit Panambalan, will join the company effective December 1, 2025, bringing extensive experience in finance and operations [11] Q&A Session Summary Question: Insights on customer engagement and depth of engagement metrics - Management noted that increasing high-quality content leads to deeper engagement, with news content now approaching 10% of the feed [15][16] Question: User acquisition strategies evolving into 2026 - The company plans to enhance the first-time user experience and will not aggressively pursue new user acquisition in the short term [18][19] Question: Sources of additional content - Management indicated a focus on increasing user-generated content while also integrating more third-party publisher content [22][23] Question: Update on programmatic capabilities - The company completed supply-side platform integration and is currently testing with demand-side platforms, including a deal with Yahoo [24][25] Question: Engagement from alerts and notifications - Management confirmed that reducing notifications has led to more effective alerts, which are helping to re-engage lapsed users [29][30]

Nextdoor Investor Update Disclaimer Certain statements in this Investor Update may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "project," "target," "plan," or "potentially" or the negatives of these terms or variations of the ...

User Metrics - Platform Weekly Active Users (WAU) decreased by 3% to 21.6 million for the three months ended September 30, 2025, compared to 22.3 million in the same period of 2024[88][89]. Revenue - Revenue for the three months ended September 30, 2025, was $68.9 million, a 5% increase from $65.6 million in the same period of 2024[88][107]. - Revenue for the nine months ended September 30, 2025, was $188.2 million, a 3% increase from $182.0 million in the same period of 2024[88][108]. Average Revenue Per User - Average revenue per Platform WAU (ARPU) increased by 8% to $3.19 for the three months ended September 30, 2025, compared to $2.95 in the same period of 2024[88][91]. Expenses - Total costs and expenses for the three months ended September 30, 2025, were $86.1 million, a decrease of less than 1% compared to $86.4 million in the same period of 2024[88][105]. - Research and development expenses increased to $35.7 million for the three months ended September 30, 2025, compared to $31.9 million in the same period of 2024[105]. - Sales and marketing expenses decreased to $23.8 million for the three months ended September 30, 2025, compared to $26.2 million in the same period of 2024[105]. - General and administrative expenses decreased by $1.0 million, or 6%, for the three months ended September 30, 2025, primarily due to a $1.9 million decrease in personnel-related costs[115]. Net Loss - Net loss for the three months ended September 30, 2025, decreased by 14% to $12.9 million, compared to $14.9 million for the same period in 2024[88][105]. - The company experienced a net loss of $85.9 million for the nine months ended September 30, 2024, with significant non-cash charges including $54.2 million in stock-based compensation[137]. Cash and Securities - Cash, cash equivalents, and marketable securities totaled $403.3 million as of September 30, 2025[88]. - As of September 30, 2025, the company had cash and cash equivalents of $56.1 million and marketable securities of $347.2 million[142]. Cash Flow - Net cash used in operating activities during the nine months ended September 30, 2025, was $3.0 million, resulting from a net loss of $50.2 million[129]. - Cash used in operating activities for the nine months ended September 30, 2024 was $32.0 million, resulting from a net loss of $85.9 million adjusted for non-cash charges of $76.2 million[130]. - Cash provided by investing activities for the nine months ended September 30, 2024 was $93.4 million, consisting of proceeds from maturities of marketable securities of $158.4 million and sales of marketable securities of $138.4 million[132]. Share Repurchase - The company repurchased and retired 8,409,278 shares of Class A common stock at an average price of $1.72 per share for a total of $14.5 million during the nine months ended September 30, 2025[127]. Future Expectations - The company expects to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years for business expansion[124]. Interest and Currency Risk - Interest income decreased by $1.2 million, or 20%, for the three months ended September 30, 2025, driven by lower returns on marketable securities[117]. - The company has not had a formal hedging program for foreign currency but may consider it if exposure increases[143]. - The company’s revenue is primarily denominated in U.S. Dollars, minimizing significant foreign currency risk[143]. - A hypothetical 100 basis point change in interest rates would not materially affect the fair value of the company's investment portfolio[142].

Financial Performance - Revenue for Q3 2025 was $69 million, representing a 5% year-over-year increase[4] - GAAP net loss for the quarter was $13 million, an improvement from a net loss of $15 million in the same period last year[4] - Adjusted EBITDA for Q3 2025 was $4 million, compared to a loss of $1 million in Q3 2024, reflecting an 8 percentage point year-over-year margin improvement[4] - Adjusted EBITDA margin for Q3 2025 was 6%, compared to a negative margin of 2% in Q3 2024[5] - The company reiterated its path to achieving full-year adjusted EBITDA breakeven in FY 2026[4] User Engagement - Platform Weekly Active Users (WAU) decreased by 3% year-over-year to 21.6 million[4] - The company is focused on optimizing user engagement and monetization with the new Nextdoor live platform[2] Revenue Sources - Self-serve advertising accounted for nearly 60% of Q3 revenue, driven by performance improvements from the Nextdoor Ads Platform[2] Leadership Changes - Indrajit Ponnambalam was appointed as Chief Financial Officer, effective December 1, 2025[2] Cash Position - Ending cash, cash equivalents, and marketable securities totaled $403 million as of September 30, 2025[4]