Thesis: Nextdoor’s hyper-localized audiences, ample cash, and efforts to better connect with users via the upcoming NEXT platform make KIND an interesting investment prospect with high upside. That said, the company is bleeding cash, and monetization and profitability mayMarkets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which ...

Core Insights - Reddit (RDDT) and Nextdoor (KIND) are community-driven social platforms that provide investors with exposure to both global and localized engagement [1] - The social networking market is projected to grow by $312.3 billion from 2024 to 2029, with a CAGR of 21.6%, driven by increased Internet penetration and demand for targeted advertising [2] Reddit (RDDT) Overview - RDDT experienced a 61% year-over-year revenue increase in Q1 2025, reaching $392.4 million, primarily due to higher ad impressions and investment from performance advertisers [3][10] - Daily Active Uniques rose 31% year over year to 108.1 million, while mobile app usage grew by 45% [4][10] - Reddit is enhancing its platform with AI-led features, such as Reddit Answers, which has one million weekly users, and is expanding into the U.K. and Australia [5][6] - The introduction of Reddit Pro has improved advertiser tools, facilitating better community engagement and visibility [6] Nextdoor (KIND) Overview - KIND's revenue grew by 2% year over year to $54 million in Q1 2025, although it fell short of consensus estimates by 1.3% [7][10] - Weekly Active Users increased by 6% year over year to 46.1 million, with platform engagement metrics also showing growth [8][10] - Nextdoor is advancing its product portfolio through the NEXT redesign initiative, which aims to enhance content discovery and usability [9] - AI-powered tools have been introduced to improve user engagement and support monetization efforts [11] Market Performance and Valuation - Year-to-date, RDDT and KIND shares have declined by 27.7% and 35.8%, respectively, due to a challenging macroeconomic environment [12] - Both companies are currently considered overvalued, with RDDT trading at a forward Price/Sales ratio of 10.46X compared to KIND's 2.28X [15] - The Zacks Consensus Estimate for RDDT's 2025 earnings is $1.21 per share, indicating a 136.34% year-over-year increase, while KIND's 2025 loss is estimated at 20 cents per share, an improvement from the previous year's loss [18] Conclusion - Reddit is positioned favorably with strong revenue growth, an expanding product portfolio, and increasing adoption of AI tools, making it a more attractive investment compared to Nextdoor, which is still in the early stages of scaling its platform [20][21]

Financial Data and Key Metrics Changes - The meeting discussed the election of four class one directors and the ratification of Ernst and Young LLP as the independent registered public accounting firm for the year ending December 31, 2025 [11][12][17] - The proposal to approve the nonbinding advisory basis of the compensation of named executive officers was also presented and approved [13][18] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were provided during the meeting [0] Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [0] Company Strategy and Development Direction and Industry Competition - The board of directors recommended the election of the nominated directors and the ratification of the accounting firm, indicating a focus on governance and compliance [12][17] - The approval of executive compensation suggests a strategy to align management incentives with shareholder interests [13][18] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [0] Other Important Information - The meeting was held virtually to increase stockholder participation, reflecting a trend towards digital engagement [3] - Stockholders were limited to one question each, and the question and answer session was limited to ten minutes, indicating a structured approach to shareholder engagement [6][14] Q&A Session Summary - No relevant questions were submitted during the Q&A session, leading to its early conclusion [14]

Group 1 - The article suggests that there are opportunities in undervalued stocks that are mispriced by the market as of June [1] - It encourages readers to consider joining a specific investment service for insights on these opportunities [1] Group 2 - The article does not provide any specific company or industry analysis, focusing instead on general investment advice [2][3][4]

Nextdoor Investor Update - Q1 2025 investors.nextdoor.com 1 John T. Williams, Head of IR 3 Nirav Tolia, CEO 4 2 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," ...

Nextdoor (KIND) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants John Williams - Head of IRNirav Tolia - Co-Founder, CEO, President & Chairperson of the BoardMatt Anderson - CFOYoussef Squali - MD & Head of Internet and Digital Media Research Group Conference Call Participants Eric Sheridan - AnalystJason Kreyer - Senior Research AnalystJamesmichael Sherman-Lewis - Equity Research Analyst Operator Good afternoon. My name is Joel, and I will be your conference operator today. At this time, ...

Nextdoor (KIND) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 Good afternoon. My name is Joel, and I will be your conference operator today. At this time, I would like to welcome everyone to Nextdoor's First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. You may now begin your conference. Speaker1 Thank you, operator. I'm John T. Williams, N ...

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions that the report contains forward-looking statements subject to risks and uncertainties - This section cautions that the report contains forward-looking statements regarding future events, operating results, and financial performance. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially[8](index=8&type=chunk)[10](index=10&type=chunk) - Key areas covered by forward-looking statements include: anticipated growth in users, engagement, and monetization; development of new products and platform enhancements, including the NEXT initiative; the impact of the macroeconomic and political climate; international expansion efforts; ability to achieve and maintain profitability; and financial performance and ability to raise future financing[8](index=8&type=chunk) [Risk Factor Summary](index=6&type=section&id=Risk%20Factor%20Summary) This section summarizes principal risks including limited operating history, reliance on advertising, and financial volatility - This section provides a high-level summary of the principal risks and uncertainties facing the company, including a limited operating history, substantial reliance on advertising revenue, intense competition, dependence on third-party infrastructure, a history of net losses, and potential volatility in stock price and concentrated voting power[16](index=16&type=chunk)[17](index=17&type=chunk) [Part I - Financial Information](index=9&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, reporting a net loss of **$22.0 million** on **$54.2 million** revenue for Q1 2025 [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets decreased from **$514.0 million** to **$495.0 million**, with stockholders' equity declining to **$436.1 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $57,338 | $45,550 | | Marketable securities | $360,547 | $381,429 | | Total current assets | $451,796 | $466,692 | | **Total Assets** | **$494,962** | **$513,953** | | **Total Liabilities** | **$58,893** | **$60,465** | | **Total Stockholders' Equity** | **$436,069** | **$453,488** | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenue increased **2%** to **$54.2 million**, with net loss improving to **$22.0 million** due to decreased costs and expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $54,176 | $53,146 | | Total costs and expenses | $81,189 | $87,895 | | Loss from operations | $(27,013) | $(34,749) | | Net loss | $(21,952) | $(28,261) | | Net loss per share, basic and diluted | $(0.06) | $(0.07) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned positive at **$0.4 million**, contributing to a **$9.1 million** increase in cash and equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $368 | $(13,627) | | Net cash provided by investing activities | $21,551 | $35,890 | | Net cash used in financing activities | $(12,845) | $(12,893) | | **Net increase in cash, cash equivalents, and restricted cash** | **$9,077** | **$9,437** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, share repurchases, stock-based compensation, legal proceedings, and segment information, with most revenue from the U.S - The company's Share Repurchase Program was increased by **$150.0 million** and its expiration was extended to March 31, 2026, with **4.7 million** shares repurchased for **$9.1 million** in Q1 2025[63](index=63&type=chunk)[65](index=65&type=chunk) - Stock-based compensation expense for Q1 2025 was **$17.1 million**, a decrease from **$19.5 million** in Q1 2024[71](index=71&type=chunk) - The company is involved in several legal proceedings, including a securities class action, a shareholder derivative complaint, and a class action related to its SPAC merger, with the potential loss from these matters currently inestimable[52](index=52&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) Revenue by Geography (in thousands) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $51,901 | $49,899 | | International | $2,275 | $3,247 | | **Total** | **$54,176** | **$53,146** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a **2%** revenue increase, **6%** WAU growth, and improved Adjusted EBITDA loss [Key Business Metrics](index=26&type=section&id=Key%20Business%20Metrics) Key metrics show **6%** WAU growth to **46.1 million** but a **4%** decline in ARPU, with a future transition to Platform WAU reporting Key Business Metrics Comparison | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Weekly Active Users (WAU) | 46.1 million | 43.4 million | +6% | | Platform WAU | 22.5 million | 21.4 million | +5% | | Average Revenue per WAU (ARPU) | $1.18 | $1.22 | -4% | - Starting with the Q2 2025 report, the company will stop reporting WAU and will instead report Platform WAU, also ceasing to provide a geographic breakout for its key metrics to align with its focus on existing markets, primarily the U.S[82](index=82&type=chunk)[88](index=88&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Revenue grew **2%**, while total costs decreased **8%** due to reduced sales and marketing, leading to a smaller operating loss - Revenue increased by **$1.0 million** (**2%**) primarily due to a **5%** increase in Platform WAUs, which outpaced the increase in advertiser spending[107](index=107&type=chunk) - Sales and marketing expenses decreased by **$7.8 million** (**26%**), mainly from a **$4.2 million** reduction in personnel costs and a **$3.4 million** cut in brand and performance marketing[110](index=110&type=chunk) - Research and development expenses increased by **$2.2 million** (**7%**), primarily due to a **$2.0 million** increase in personnel-related costs from higher headcount[109](index=109&type=chunk) - Interest income decreased by **$1.9 million** (**27%**) due to lower invested balances and lower interest rates[113](index=113&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$417.9 million** in liquidity despite an **$886.0 million** accumulated deficit, with **$88.2 million** remaining for share repurchases - The company held **$417.9 million** in cash, cash equivalents, and marketable securities as of March 31, 2025[118](index=118&type=chunk) - The company has a history of losses, with an accumulated deficit of **$886.0 million** as of March 31, 2025, and expects to continue incurring losses for the foreseeable future[117](index=117&type=chunk) - The Board of Directors authorized an additional **$150.0 million** for the Share Repurchase Program and extended its expiration to March 31, 2026, with **$88.2 million** available for future repurchases as of quarter-end[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures are primarily interest rate and foreign currency fluctuations, deemed immaterial due to short-term investments and USD-denominated revenue - The company is exposed to interest rate risk on its **$417.8 million** portfolio of cash, cash equivalents, and marketable securities, but believes the risk is not material due to the short-term nature of the investments[135](index=135&type=chunk) - Foreign currency risk is currently not significant as the majority of revenue is denominated in U.S. Dollars, though operating expenses in foreign currencies are subject to exchange rate fluctuations[136](index=136&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management concluded that disclosure controls and procedures were effective as of March 31, 2025[137](index=137&type=chunk) - No changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, internal controls were identified during the quarter[138](index=138&type=chunk) [Part II - Other Information](index=39&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with detailed discussions referenced in Note 6 of the financial statements - The company is involved in various legal proceedings, and for detailed information, the report refers to Note 6, which describes ongoing securities class action, shareholder derivative, and SPAC-related class action lawsuits[141](index=141&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section outlines numerous risks, including reliance on advertising, intense competition, technology dependence, financial losses, and evolving legal and regulatory environments - **Business & Industry Risks:** The company has a limited operating history at its current scale, generates substantially all revenue from advertising, and faces intense competition from larger companies like Meta and Alphabet[143](index=143&type=chunk)[147](index=147&type=chunk)[159](index=159&type=chunk) - **Security & Technology Risks:** The business depends on third-party providers like AWS and Google Ad Manager, and is vulnerable to security breaches, data loss, and the development of ad-blocking technologies that could harm revenue[197](index=197&type=chunk)[199](index=199&type=chunk)[206](index=206&type=chunk) - **Legal & Regulatory Risks:** The company is subject to complex and evolving laws regarding data privacy (CCPA, GDPR), content liability (CDA, DSA), and artificial intelligence, which could increase costs and legal exposure[243](index=243&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk) - **Financial & Ownership Risks:** The company has a history of net losses and may not achieve profitability, while the dual-class stock structure concentrates voting power with management and early stockholders, limiting the influence of Class A shareholders[227](index=227&type=chunk)[293](index=293&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=86&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section reports no unregistered equity sales and details the repurchase of **4.72 million** Class A common shares during Q1 2025 Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 1,284,360 | $2.38 | | February 2025 | 0 | $— | | March 2025 | 3,436,055 | $1.75 | | **Total** | **4,720,415** | **—** | - The Board of Directors authorized an increase of **$150.0 million** to the Share Repurchase Program and extended its expiration date to March 31, 2026, with **$88.2 million** remaining available for future repurchases[313](index=313&type=chunk) [Defaults Upon Senior Securities](index=88&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports that this item is not applicable - Not applicable[314](index=314&type=chunk) [Mine Safety Disclosures](index=88&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports that this item is not applicable - Not applicable[315](index=315&type=chunk) [Other Information](index=89&type=section&id=Item%205.%20Other%20Information) The company discloses that no Section 16 officers adopted or terminated Rule 10b5-1 trading plans during Q1 2025 - During the three months ended March 31, 2025, none of the company's Section 16 officers adopted or terminated any Rule 10b5-1 trading plans[317](index=317&type=chunk) [Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q, including SOX certifications and Inline XBRL data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and interactive data files (Inline XBRL)[319](index=319&type=chunk) [Signatures](index=91&type=section&id=Signatures) The report was signed on May 7, 2025, by the Chief Executive Officer and Chief Financial Officer - The report was signed on May 7, 2025, by Nirav Tolia, Chief Executive Officer and President, and Matt Anderson, Chief Financial Officer and Treasurer[324](index=324&type=chunk)

[Nextdoor First Quarter 2025 Financial Results](index=1&type=section&id=Nextdoor%20First%20Quarter%202025%20Financial%20Results) [Q1 2025 Performance Highlights](index=1&type=section&id=Q1%202025%20Performance%20Highlights) Nextdoor's Q1 2025 saw revenue grow 2% to $54.2 million, Weekly Active Users increase 6% to 46.1 million, and profitability significantly improved with reduced losses - Key achievements in Q1 included user growth, improved margins, and **positive operating cash flow**. The company is executing a transition to a new user experience called "NEXT", expected by **late July 2025**[3](index=3&type=chunk)[4](index=4&type=chunk) Q1 2025 Financial and User Metrics | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $54.2M | $53.1M | +2% | | Weekly Active Users (WAU) | 46.1M | N/A | +6% | | GAAP Net Loss | ($22.0M) | ($28.3M) | +22% Improvement | | Adjusted EBITDA Loss | ($9.2M) | ($14.0M) | +35% Improvement | | Ending Cash & Marketable Securities | $418M | N/A | N/A | [Reconciliation of GAAP to Non-GAAP Measures](index=1&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Nextdoor reconciles its GAAP Net Loss to Adjusted EBITDA, adjusting a $22.0 million net loss to a $9.2 million Adjusted EBITDA loss for Q1 2025, reflecting a 9-percentage-point margin improvement GAAP to Adjusted EBITDA Reconciliation | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net loss** | **$ (21,952)** | **$ (28,261)** | | Stock-based compensation | 17,091 | 19,506 | | Interest income | (4,982) | (6,846) | | Depreciation and amortization | 544 | 1,387 | | Provision for income taxes | 141 | 199 | | **Adjusted EBITDA** | **$ (9,158)** | **$ (14,015)** | - Profitability margins showed significant year-over-year improvement[7](index=7&type=chunk) - Net loss margin improved to **(41)%** from **(53)%** - Adjusted EBITDA margin improved to **(17)%** from **(26)%** [Non-GAAP Financial Measures Disclosure](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Disclosure) Nextdoor uses non-GAAP measures like Adjusted EBITDA for internal planning and peer comparison, excluding specific items, while cautioning investors about their inherent limitations - The company uses non-GAAP measures like Adjusted EBITDA for internal planning, measuring core operating results, and comparing performance against peers[10](index=10&type=chunk) - Items excluded from non-GAAP calculations include stock-based compensation, depreciation and amortization, interest income, and provision for income taxes[11](index=11&type=chunk) - The company acknowledges material limitations of non-GAAP measures, noting they do not reflect cash needs for working capital, debt service, taxes, or capital asset replacement[12](index=12&type=chunk) [Company Overview](index=3&type=section&id=About%20Nextdoor) Nextdoor is a local community social network connecting neighbors, public agencies, and businesses across 345,000+ neighborhoods in 11 countries, offering a proprietary advertising platform - Nextdoor operates as the essential neighborhood network in over **345,000 neighborhoods** across **11 countries**[13](index=13&type=chunk) - The company offers a proprietary advertising platform that enables brands and businesses to engage with neighborhoods at scale[13](index=13&type=chunk)

Core Insights - The first quarter of 2025 has seen significant volatility in stock performance, with some stocks gaining up to 40% while others have declined nearly 30% [1][2] Teva Pharmaceutical - Teva Pharmaceutical is the worst-performing stock in the portfolio, down 27% in less than three months, primarily due to disappointing guidance in its fourth quarter earnings report [3][4] - Despite slightly beating revenue and earnings expectations, the company's guidance for 2025 earnings of $2.65 per share was significantly lower than anticipated, leading to a sharp decline in stock price [4] - Teva aims for "accelerated growth" from 2025 to 2027 by focusing on generics, expanding margins, and innovative launches, with a current valuation of 6.3 times forward earnings estimates indicating potential upside if management meets its goals [5] Block - Block is the second worst-performing stock, down 26% this year, largely due to its earnings report which missed expectations on both revenue and earnings, with year-over-year revenue growth of less than 5% [6][7] - Increased competition from other payment processors, particularly those with specialized capabilities, has raised concerns among investors [7] - Block is focusing on enhancing its lending capabilities, having acquired Afterpay and recently launching Cash App Borrow, along with developing an open bitcoin mining system called Proto [8] Nextdoor - Nextdoor has also seen a 26% decline in stock price, despite a 17% year-over-year revenue growth and positive adjusted EBITDA for the first time as a public company [10] - The company has a strong cash position of $427 million with no debt, yet its average revenue per U.S. daily active user is significantly lower than competitors like Pinterest [9][10] - Investors are skeptical about the company's vision to reinvent the platform as NEXT, which includes local-focused content and AI-powered recommendations, especially given the forecast for flat revenue and a significant adjusted EBITDA loss in the first quarter [11][12] Investment Opportunities - All three stocks—Teva, Block, and Nextdoor—are considered solid investment opportunities despite their current performance issues [13] - Teva is viewed as having long-term potential with a cheap valuation, while Nextdoor could be a significant growth opportunity if its leadership executes effectively [14] - Block has been identified as a stock where additional shares have been purchased in 2025, indicating confidence in its growth potential [14]