Q2 2025 Performance - Nextdoor's Platform Weekly Active Users (WAU) grew modestly by 1% year-over-year to 22 million[29] - Revenue increased by 3% year-over-year to $65 million, with self-serve revenue growing 27% year-over-year and representing nearly 60% of Q2 revenue[29, 47] - Net margin improved by 4 percentage points year-over-year, while Adjusted EBITDA margin improved by 6 percentage points year-over-year[29] - The company repurchased 37 million shares in Q2[58] Financial Outlook - The company expects Q3 2025 revenue to be $66 million, representing 0% year-over-year change[59] - The company anticipates an Adjusted EBITDA loss of $5 million for Q3 2025, with an Adjusted EBITDA margin of -8%[59] - Nextdoor aims to achieve quarterly adjusted EBITDA breakeven in Q4 2025 and full-year adjusted EBITDA breakeven in fiscal year 2026[59, 60] Financial Health - The company's balance sheet shows $413 million in cash, cash equivalents, and marketable securities at the end of Q2[57] - Net loss for the quarter was $15362 million, with a net loss margin of -24%[50, 65] - Adjusted EBITDA for the quarter was a loss of $2247 million, representing a -3% margin[54, 73]

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements, emphasizing their basis on current expectations and inherent risks, advising against undue reliance [Forward-Looking Statements Overview](index=3&type=section&id=Forward-Looking%20Statements%20Overview) This section outlines the nature of forward-looking statements contained in the Quarterly Report, emphasizing that they are based on current expectations and projections and are subject to various risks and uncertainties, advising readers not to place undue reliance on these statements, as actual results could differ materially - Forward-looking statements cover anticipated growth, monetization, product development (including the new Nextdoor initiative), economic climate, international expansion, AI investment, profitability, capital access, strategic relationships, NYSE listing, regulatory changes, internal controls, and catastrophic events[8](index=8&type=chunk) - These statements are subject to numerous risks, uncertainties, and assumptions detailed in the 'Risk Factors' section, operating in a competitive and rapidly changing environment[10](index=10&type=chunk) - The company does not undertake to update such statements after the filing date, except as required by law, and cannot guarantee future results, performance, or achievements[11](index=11&type=chunk) [Risk Factor Summary](index=6&type=section&id=RISK%20FACTOR%20SUMMARY) This section summarizes key risks, including limited operating history, economic vulnerability, advertising reliance, intense competition, and infrastructure dependence [Principal Risks and Uncertainties](index=6&type=section&id=Principal%20Risks%20and%20Uncertainties) This summary highlights key risks, including the company's limited operating history and monetization efforts, vulnerability to adverse global economic conditions, heavy reliance on advertising revenue, intense competition, dependence on technical infrastructure and third-party providers, challenges in scaling the business, and a history of net losses, also touching on legal, regulatory, and stock price volatility risks - The company has a **limited operating history** at its current scale and is still scaling monetization efforts, making future prospects difficult to evaluate[16](index=16&type=chunk) - Adverse global economic and financial conditions, including inflation and potential recessions, could harm the business and financial condition[16](index=16&type=chunk) - Substantially all revenue is generated from advertising; a reduction in advertiser spending would adversely impact business, operating results, and financial condition[16](index=16&type=chunk) - The business is highly competitive, dependent on maintaining and scaling product offerings and technical infrastructure, and relies on third-party software and service providers (e.g., Google Ad Manager, AWS)[16](index=16&type=chunk) - Key risks also include failure to scale effectively, build strong brand identity, attract/retain talented employees, security breaches, and a history of net losses with no assurance of future profitability[16](index=16&type=chunk)[17](index=17&type=chunk) [Part I - Financial Information](index=9&type=section&id=Part%20I%20-%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition [Item 1. Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, deferred revenue, marketable securities, fair value measurements, commitments, equity, net loss per share, income taxes, segment information, and subsequent events [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs. Dec 31, 2024) | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------------------- | | Total Assets | $490,355 | $513,953 | -$23,598 | | Total Liabilities | $60,822 | $60,465 | +$357 | | Total Stockholders' Equity | $429,533 | $453,488 | -$23,955 | | Cash and Cash Equivalents | $62,050 | $45,550 | +$16,500 | | Marketable Securities | $351,299 | $381,429 | -$30,130 | | Accounts Receivable, net | $27,050 | $31,173 | -$4,123 | | Total Current Assets | $448,224 | $466,692 | -$18,468 | | Total Current Liabilities | $32,823 | $27,944 | +$4,879 | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, expenses, and net loss over specific periods, highlighting operational performance | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------ | | Revenue | $65,093 | $63,292 | +$1,801 (+3%) | $119,269 | $116,438 | +$2,831 (+2%) | | Total Costs and Expenses | $85,369 | $112,308 | -$26,939 (-24%) | $166,558 | $200,203 | -$33,645 (-17%) | | Loss from Operations | $(20,276) | $(49,016) | +$28,740 (+59%) | $(47,289) | $(83,765) | +$36,476 (+44%) | | Net Loss | $(15,362) | $(42,781) | +$27,419 (+64%) | $(37,314) | $(71,042) | +$33,728 (+47%) | | Net Loss Per Share (basic and diluted) | $(0.04) | $(0.11) | +$0.07 | $(0.10) | $(0.18) | +$0.08 | [Condensed Consolidated Statements of Comprehensive Loss](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section details the company's net loss and other comprehensive income or loss, providing a complete view of changes in equity from non-owner sources | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------ | | Net Loss | $(15,362) | $(42,781) | +$27,419 (+64%) | $(37,314) | $(71,042) | +$33,728 (+47%) | | Total Other Comprehensive Income (Loss) | $105 | $(415) | +$520 | $392 | $(1,199) | +$1,591 | | Comprehensive Loss | $(15,257) | $(43,196) | +$27,939 (+65%) | $(36,922) | $(72,241) | +$35,319 (+49%) | [Condensed Consolidated Statements of Stockholders' Equity](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in the company's equity accounts, including net loss, stock-based compensation, and share repurchases - Total Stockholders' Equity decreased from **$453,488 thousand** as of December 31, 2024, to **$429,533 thousand** as of June 30, 2025[29](index=29&type=chunk) - For the six months ended June 30, 2025, key activities included **$34,198 thousand** in stock-based compensation, **$(14,528) thousand** in common stock repurchases, and a net loss of **$(37,314) thousand**[29](index=29&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by the company's operating, investing, and financing activities over specific periods | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :------------------------------------------------ | | Net Cash Provided by (Used in) Operating Activities | $3,314 | $(18,987) | +$22,301 | | Net Cash Provided by Investing Activities | $31,653 | $61,399 | -$29,746 | | Net Cash Used in Financing Activities | $(21,231) | $(49,743) | +$28,512 | | Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | $13,708 | $(7,273) | +$20,981 | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 1. Description of Business](index=15&type=section&id=Note%201.%20Description%20of%20Business) This note describes Nextdoor Holdings, Inc. as an essential neighborhood network and details its corporate history - Nextdoor Holdings, Inc. is an essential neighborhood network connecting over **100 million verified neighbors** with local news, safety alerts, recommendations, listings, and events[34](index=34&type=chunk) - The company completed a Reverse Recapitalization on November 5, 2021, with Khosla Ventures Acquisition Co. II being renamed Nextdoor Holdings, Inc[35](index=35&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=15&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and policies used in preparing the financial statements, including recent accounting pronouncements - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly-owned subsidiaries[36](index=36&type=chunk) - There have been **no material changes** to the Company's significant accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[40](index=40&type=chunk) - The Company is evaluating ASU 2024-03, 'Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures,' effective for annual periods beginning after December 15, 2026, which will require additional disclosures but is **not expected to impact financial statements**[42](index=42&type=chunk) [Note 3. Deferred Revenue](index=17&type=section&id=Note%203.%20Deferred%20Revenue) This note details the company's deferred revenue balance and the amounts recognized from it over various periods - Deferred revenue was **$7.5 million** as of June 30, 2025, an increase from **$6.8 million** as of December 31, 2024[43](index=43&type=chunk) | Period | Revenue Recognized from Deferred Revenue (in millions) | | :---------------------- | :--------------------------------------- | | Three Months Ended June 30, 2025 | $2.1 | | Three Months Ended June 30, 2024 | $4.1 | | Six Months Ended June 30, 2025 | $2.8 | | Six Months Ended June 30, 2024 | $4.0 | [Note 4. Cash Equivalents and Marketable Securities](index=17&type=section&id=Note%204.%20Cash%20Equivalents%20and%20Marketable%20Securities) This note provides a breakdown of cash equivalents and marketable securities, including their fair values and contractual maturities | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :-------------------------- | :--------------------------------- | :----------------------------------- | | Total Cash Equivalents | $29,202 | $19,192 | | Total Marketable Securities | $351,299 | $381,429 | | Total | $380,501 | $400,621 | - All marketable securities are designated as **available-for-sale**[44](index=44&type=chunk) | Contractual Maturity | As of June 30, 2025 (Estimated Fair Value in thousands) | As of December 31, 2024 (Estimated Fair Value in thousands) | | :------------------- | :---------------------------------------------------- | :-------------------------------------------------------- | | Due within one year | $131,483 | $172,333 | | Due after one to four years | $219,816 | $209,096 | [Note 5. Fair Value Measurements](index=18&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note explains how financial assets are measured at fair value, categorizing them within the fair value hierarchy - The Company's financial assets measured at fair value are classified within **Level 1** (money market funds) or **Level 2** (corporate bonds, certificates of deposit, commercial paper, U.S. Treasury securities, asset-backed securities) of the fair value hierarchy[48](index=48&type=chunk) - There were **no financial assets or liabilities measured using Level 3 inputs** as of June 30, 2025, and December 31, 2024[47](index=47&type=chunk) - A note receivable from Opportunity Finance Network totaled **$15.0 million** (carrying amount) with a fair value of **$14.128 million** as of June 30, 2025[50](index=50&type=chunk)[52](index=52&type=chunk) [Note 6. Commitments and Contingencies](index=20&type=section&id=Note%206.%20Commitments%20and%20Contingencies) This note discloses the company's legal proceedings, including class action and shareholder derivative complaints, and its defense strategy - A securities class action complaint was filed in February 2024, alleging violations of the Securities Exchange Act of 1934. A second amended complaint was filed on June 16, 2025, narrowing claims[55](index=55&type=chunk) - A shareholder derivative complaint was filed on July 26, 2024, based on similar alleged misstatements, currently stayed[56](index=56&type=chunk) - Two class action complaints were filed in October 2024, consolidated in December 2024, alleging breaches of duties related to the November 2021 merger. Discovery has commenced[58](index=58&type=chunk)[59](index=59&type=chunk) - The Company intends to **vigorously defend** against these claims and is currently **unable to estimate the reasonably possible loss or range of loss**[57](index=57&type=chunk)[59](index=59&type=chunk) [Note 7. Common Stock and Stockholders' Equity](index=22&type=section&id=Note%207.%20Common%20Stock%20and%20Stockholders'%20Equity) This note details changes in common stock and stockholders' equity, including equity incentive plans, ESPP, and share repurchase activities - The 2021 Equity Incentive Plan reserved **46,008,885 shares** of Class A common stock, with automatic annual increases[62](index=62&type=chunk) - The 2021 Employee Stock Purchase Plan (ESPP) reserved **8,901,159 shares** of Class A common stock, with automatic annual increases. **408,404 shares** were purchased in H1 2025[63](index=63&type=chunk)[64](index=64&type=chunk) - The Share Repurchase Program was increased by **$150.0 million** and extended to March 31, 2026, with **$82.8 million** available as of June 30, 2025. The company repurchased **8.4 million shares** for **$14.5 million** in H1 2025[65](index=65&type=chunk)[67](index=67&type=chunk) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Stock-based compensation | $34,198 | $35,741 | [Note 8. Net Loss Per Share Attributable to Common Stockholders](index=25&type=section&id=Note%208.%20Net%20Loss%20Per%20Share%20Attributable%20to%20Common%20Stockholders) This note presents the basic and diluted net loss per share and discusses the treatment of potentially dilutive securities | Period | Net Loss Per Share (Basic and Diluted) | | :-------------------------------- | :------------------------------------- | | Three Months Ended June 30, 2025 | $(0.04) | | Three Months Ended June 30, 2024 | $(0.11) | | Six Months Ended June 30, 2025 | $(0.10) | | Six Months Ended June 30, 2024 | $(0.18) | - Potentially dilutive securities, totaling **76,530 thousand** as of June 30, 2025, were excluded from diluted net loss per share computations due to their anti-dilutive impact[76](index=76&type=chunk) [Note 9. Income Taxes](index=26&type=section&id=Note%209.%20Income%20Taxes) This note outlines the company's income tax expense, primarily related to foreign taxes, for the reported periods - Income tax expense for the three months ended June 30, 2025 and 2024 was **$0.3 million** each, primarily related to foreign taxes[79](index=79&type=chunk) - Income tax expense for the six months ended June 30, 2025, was **$0.4 million**, a decrease from **$0.5 million** in 2024, primarily due to a decrease in foreign income tax expenses[79](index=79&type=chunk)[125](index=125&type=chunk) [Note 10. Segment and Geographical Information](index=26&type=section&id=Note%2010.%20Segment%20and%20Geographical%20Information) This note provides revenue breakdown by geography and confirms the company operates as a single reportable segment - The Company operates as **one reportable and operating segment**[80](index=80&type=chunk) | Geography | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------- | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | United States | $62,832 | $61,117 | $114,733 | $111,015 | | International | $2,261 | $2,175 | $4,536 | $5,423 | | Total | $65,093 | $63,292 | $119,269 | $116,438 | - Substantially all of the Company's long-lived assets are located in the United States[81](index=81&type=chunk) [Note 11. Subsequent Events](index=28&type=section&id=Note%2011.%20Subsequent%20Events) This note discloses significant events occurring after the reporting period, including a cost reduction plan and associated charges - On August 7, 2025, the Company announced a **Cost Reduction Plan** to align its workforce and expenses with business priorities[82](index=82&type=chunk) - The plan is estimated to incur one-time cash charges of approximately **$5 million** (primarily for severance and benefits) and **$1 million** in stock-based compensation expense (for accelerated equity vesting)[83](index=83&type=chunk) - The majority of these charges are expected in **Q3 2025**, with the plan substantially complete by the end of Q3 2025[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, including an overview of the business, key business metrics, detailed analysis of revenue and expense components, liquidity, cash flows, and a reconciliation of non-GAAP Adjusted EBITDA, highlighting the company's improved financial performance with reduced net losses and operating expenses [Overview](index=29&type=section&id=Overview) This section provides a general description of Nextdoor's business as an essential neighborhood network connecting neighbors, businesses, and public agencies - Nextdoor is an essential neighborhood network for over **100 million verified neighbors**, offering local news, safety alerts, recommendations, listings, and events[86](index=86&type=chunk) - The platform also serves businesses, news publishers, and public agencies for information sharing and community engagement[86](index=86&type=chunk) [Key Business Metrics](index=29&type=section&id=Key%20Business%20Metrics) This section presents and analyzes key performance indicators such as Platform Weekly Active Users (WAU) and Average Revenue per Platform Weekly Active User (Platform ARPU) - Platform Weekly Active Users (WAU) increased by **1% to 21.8 million** for the three months ended June 30, 2025, compared to the same period in 2024[89](index=89&type=chunk)[90](index=90&type=chunk) - Average Revenue per Platform Weekly Active User (Platform ARPU) increased by **2% to $2.99** for the three months ended June 30, 2025, compared to the same period in 2024[89](index=89&type=chunk)[92](index=92&type=chunk) - Revenue for the three months ended June 30, 2025, was **$65.1 million** (**+3% YoY**), and for the six months was **$119.3 million** (**+2% YoY**)[89](index=89&type=chunk) - Net loss for the three months ended June 30, 2025, decreased **64% to $15.4 million**, and for the six months decreased **47% to $37.3 million**[89](index=89&type=chunk) - Platform WAU figures for Q1 2024 through Q1 2025 were revised due to an immaterial overstatement related to iOS push notifications[93](index=93&type=chunk) [Components of Results of Operations](index=31&type=section&id=Components%20of%20Results%20of%20Operations) This section details the primary drivers of revenue and the various categories of operating expenses, including cost of revenue, R&D, sales and marketing, and G&A - Revenue is primarily generated from online display advertisements (CPM, CPC, subscription basis), with the majority from the United States[96](index=96&type=chunk) - Cost of revenue includes third-party hosting, allocated personnel-related costs for revenue-generating product development, third-party ad delivery/support, and credit card transaction fees[97](index=97&type=chunk) - Research and development expenses consist mainly of personnel-related costs (salaries, benefits, stock-based compensation), consultants, third-party software, and allocated overhead[98](index=98&type=chunk) - Sales and marketing expenses include personnel, commissions, brand and performance marketing for user and local business acquisition, and neighbor services[99](index=99&type=chunk) - General and administrative expenses cover personnel for executive, finance, legal, IT, HR, professional services, and allocated overhead[102](index=102&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on changes in revenue, total costs and expenses, loss from operations, and net loss over the reporting periods - Revenue increased by **$1.8 million** (**3%**) for Q2 2025 and **$2.8 million** (**2%**) for H1 2025, driven by increased advertising spending and a **1% increase in Q2 Platform WAU**[109](index=109&type=chunk)[110](index=110&type=chunk) - Total costs and expenses decreased significantly by **$26.9 million** (**24%**) for Q2 2025 and **$33.6 million** (**17%**) for H1 2025, primarily due to a **$23.3 million reduction in restructuring costs** from Q2 2024 and decreased sales and marketing expenses[107](index=107&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Loss from operations improved by **$28.7 million** (**59%**) for Q2 2025 and **$36.5 million** (**44%**) for H1 2025, reflecting the reduction in overall expenses[107](index=107&type=chunk) - Interest income decreased by **26%** for both Q2 and H1 2025 due to lower invested balances and interest rates[120](index=120&type=chunk)[121](index=121&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to meet its short-term and long-term financial obligations, including cash, cash equivalents, marketable securities, and potential future financing needs - The Company has an accumulated deficit of **$901.4 million** as of June 30, 2025, and expects continued operating losses and cash outflows[127](index=127&type=chunk) - As of June 30, 2025, cash, cash equivalents, and marketable securities totaled **$413.3 million**, expected to cover short-term cash requirements[129](index=129&type=chunk) - The Share Repurchase Program was increased by **$150.0 million** and extended to March 31, 2026, with **$82.8 million** available for future repurchases as of June 30, 2025[131](index=131&type=chunk) - Long-term cash requirements may necessitate future equity or debt financings, which could lead to dilution or restrictive covenants[129](index=129&type=chunk)[130](index=130&type=chunk) [Cash Flows](index=37&type=section&id=Cash%20Flows) This section analyzes the sources and uses of cash from operating, investing, and financing activities, highlighting significant changes year-over-year - Net cash provided by operating activities was **$3.3 million** for the six months ended June 30, 2025, a significant improvement from **$19.0 million used** in the prior year, driven by reduced net loss and favorable changes in operating assets and liabilities[133](index=133&type=chunk)[134](index=134&type=chunk) - Net cash provided by investing activities was **$31.7 million** for H1 2025, primarily from marketable securities maturities and sales, partially offset by purchases[136](index=136&type=chunk) - Net cash used in financing activities was **$21.2 million** for H1 2025, mainly due to common stock repurchases and tax withholdings on RSUs, partially offset by stock option exercises and ESPP proceeds[138](index=138&type=chunk) [Non-GAAP Financial Measure](index=38&type=section&id=Non-GAAP%20Financial%20Measure) This section defines and reconciles Adjusted EBITDA, a non-GAAP measure, to net loss, providing insights into the company's operational performance - Adjusted EBITDA is a non-GAAP measure representing net loss adjusted for depreciation, stock-based compensation, net interest income, income taxes, and restructuring/acquisition costs, used to assess performance and evaluate business strategies[140](index=140&type=chunk)[141](index=141&type=chunk) | Period | Adjusted EBITDA (in thousands) | | :-------------------------- | :----------------------------- | | Three Months Ended June 30, 2025 | $(2,247) | | Three Months Ended June 30, 2024 | $(5,979) | | Six Months Ended June 30, 2025 | $(11,405) | | Six Months Ended June 30, 2024 | $(19,994) | - Adjusted EBITDA loss decreased by **62%** for the three months and **43%** for the six months ended June 30, 2025, compared to the prior year[142](index=142&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no material changes to the company's critical accounting policies and estimates from the prior annual report - There have been **no material changes** to the Company's critical accounting policies and estimates as compared to those described in its Annual Report on Form 10-K for the year ended December 31, 2024[144](index=144&type=chunk) [Recently Issued Accounting Pronouncements](index=39&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section refers to Note 2 for information on recently issued accounting pronouncements and their potential impact - Refer to Note 2 to the unaudited condensed consolidated financial statements for more information regarding recently issued accounting pronouncements[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily from fluctuations in interest rates and foreign currency exchange rates, and assesses their potential impact on financial condition [Interest Rate Risk](index=39&type=section&id=Interest%20Rate%20Risk) This section assesses the company's exposure to interest rate fluctuations on its cash, cash equivalents, and marketable securities - As of June 30, 2025, the Company held **$62.1 million** in cash and cash equivalents and **$351.3 million** in marketable securities[147](index=147&type=chunk) - Due to the short-term nature of its investment portfolio, a hypothetical **100 basis point change** in interest rates would **not have a material effect** on the fair value of the portfolio[147](index=147&type=chunk) [Foreign Currency Risk](index=39&type=section&id=Foreign%20Currency%20Risk) This section evaluates the company's exposure to foreign currency exchange rate fluctuations, particularly for international operating expenses - The majority of the Company's revenue is denominated in U.S. Dollars, limiting foreign currency risk on revenue[148](index=148&type=chunk) - Operating expenses in international subsidiaries are denominated in local currencies (e.g., British Pound, Euro, Canadian Dollar, Australian Dollar), exposing the company to fluctuations in foreign currency exchange rates[148](index=148&type=chunk) - A **10% change** in the relative value of the U.S. Dollar would **not have materially affected** the unaudited condensed consolidated financial statements for the periods presented, and there is no formal hedging program[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures, confirms no material changes in internal control over financial reporting, and acknowledges the inherent limitations of control systems [Evaluation of Disclosure Controls and Procedures](index=39&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms management's conclusion on the effectiveness of the company's disclosure controls and procedures - Management concluded that the Company's disclosure controls and procedures were **effective at the reasonable assurance level** as of June 30, 2025[149](index=149&type=chunk) [Changes in Internal Control over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports that no material changes in internal control over financial reporting occurred during the period - **No changes** in internal control over financial reporting were identified during the period that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[151](index=151&type=chunk) [Limitations on the Effectiveness of Disclosure Controls and Procedures](index=40&type=section&id=Limitations%20on%20the%20Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) This section acknowledges the inherent limitations of control systems, emphasizing that they provide reasonable, not absolute, assurance - Management acknowledges that control systems provide only reasonable, not absolute, assurance and may not prevent all errors or fraud due to inherent limitations[152](index=152&type=chunk) - Inherent limitations include faulty judgments, simple errors, circumvention by individuals or collusion, and management override[152](index=152&type=chunk) [Part II - Other Information](index=41&type=section&id=Part%20II%20-%20Other%20Information) This part includes information on legal proceedings, risk factors, equity security sales, and other disclosures not covered in the financial statements [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 6, Commitments and Contingencies, in Part I, Item 1 of this Quarterly Report for detailed information regarding the company's involvement in various legal proceedings and claims - For information regarding legal proceedings and other claims, refer to Note 6, Commitments and Contingencies, in Part I, Item 1 of this Quarterly Report[155](index=155&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This comprehensive section details various risks that could materially and adversely affect the company's business, operating results, financial condition, and prospects, covering risks related to business and industry, security and technology, financial and accounting matters, legal and regulatory compliance, intellectual property, and ownership of Class A common stock [Risks Related to Our Business and Industry](index=41&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) This section outlines risks associated with the company's operating history, economic conditions, advertising reliance, competition, and international expansion - The company's **limited operating history** and early monetization efforts make it difficult to evaluate current business and future prospects, with **no assurance of sustained growth**[157](index=157&type=chunk)[158](index=158&type=chunk) - Adverse global economic and financial conditions, including inflation, recessions, and trade policies, could lead to decreased advertiser spending and harm the business[159](index=159&type=chunk)[160](index=160&type=chunk) - Substantial reliance on advertising revenue means reductions in advertiser spending due to factors like decreased engagement, competition, platform changes, or privacy regulations would negatively impact results[161](index=161&type=chunk)[162](index=162&type=chunk) - Failure to attract or retain neighbors, or decreased engagement, would adversely impact the business and may necessitate higher marketing expenses[169](index=169&type=chunk)[172](index=172&type=chunk) - The business operates in a **highly competitive market**, facing large social media and tech companies, which poses an ongoing threat to success[173](index=173&type=chunk)[174](index=174&type=chunk) - Product and investment decisions, including the 'new Nextdoor' initiative and AI investments, may conflict with short-term financial results and may not yield expected long-term benefits[192](index=192&type=chunk)[199](index=199&type=chunk) - Expanding international operations introduces increased business, regulatory, and economic risks due to limited experience, local laws, and currency fluctuations[200](index=200&type=chunk)[201](index=201&type=chunk) - Future success depends on attracting, retaining, and assimilating talented employees, including senior management; loss of key personnel could hinder strategy execution[204](index=204&type=chunk)[207](index=207&type=chunk) [Risks Related to Security and Technology](index=56&type=section&id=Risks%20Related%20to%20Security%20and%20Technology) This section addresses risks concerning technical infrastructure, third-party providers, ad-blocking, security breaches, and reliance on mobile app platforms - The business is dependent on maintaining and scaling its product offerings and technical infrastructure; any significant disruption could damage reputation and lead to loss of neighbors and engagement[179](index=179&type=chunk) - Reliance on third-party software and service providers, including Google Ad Manager for ad delivery and AWS for infrastructure, means failures or interruptions could prevent access to the platform and adversely impact business[209](index=209&type=chunk)[210](index=210&type=chunk)[212](index=212&type=chunk) - Ad-blocking technologies could prevent the display of advertisements, adversely impacting revenue, as the company generates substantially all revenue from advertising[215](index=215&type=chunk) - Security breaches, including improper access to or disclosure of data, or hacking/phishing attacks, could harm reputation, adversely affect business, and result in legal liability[216](index=216&type=chunk)[217](index=217&type=chunk)[221](index=221&type=chunk) - Distribution and marketing of the platform depend significantly on third-party publishers and platforms (e.g., mobile app stores); changes in their terms or policies could materially adversely affect the business[225](index=225&type=chunk)[226](index=226&type=chunk) - Errors, bugs, or vulnerabilities in the highly technical software and hardware, or failures to address technical limitations, could negatively impact user experience, product introductions, data protection, and lead to reputational harm or litigation[228](index=228&type=chunk) [Risks Related to Financial and Accounting Matters](index=60&type=section&id=Risks%20Related%20to%20Financial%20and%20Accounting%20Matters) This section covers risks related to fluctuating operating results, inaccurate metric estimates, net losses, NOL limitations, accounting changes, and currency fluctuations - Operating results may fluctuate significantly due to numerous unpredictable factors, making future results difficult to forecast and potentially causing stock price volatility[232](index=232&type=chunk)[233](index=233&type=chunk) - Market opportunity and key metric estimates (e.g., Platform WAU, ARPU) could prove inaccurate, harming reputation and negatively affecting the business, as evidenced by past revisions[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) - The company has a history of net losses, with an accumulated deficit of **$901.4 million** as of June 30, 2025, and cannot assure future profitability[241](index=241&type=chunk) - The ability to use U.S. federal and state net operating losses (NOLs) to offset future taxable income may be limited by ownership changes (Section 382) or future tax law changes, potentially increasing tax liability[242](index=242&type=chunk)[244](index=244&type=chunk) - Changes in accounting principles generally accepted in the United States (GAAP) or their interpretations could adversely affect revenue and financial results[245](index=245&type=chunk) - Fluctuations in currency exchange rates, particularly with increased international operations, could adversely affect operating results reported in U.S. dollars[246](index=246&type=chunk) - The company may face greater than anticipated tax liabilities due to operations in multiple global jurisdictions, complex transfer pricing regulations, and indirect tax audits[247](index=247&type=chunk)[248](index=248&type=chunk) - The Share Repurchase Program may not be fully consummated or enhance long-term stockholder value, and could increase stock price volatility or diminish cash reserves[250](index=250&type=chunk)[251](index=251&type=chunk) [Risks Related to Legal and Regulatory Matters](index=67&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Matters) This section details risks from content liability, government restrictions, evolving laws (data privacy, online safety, AI), and public company compliance obligations - The company may be liable for content or information published on its platform, including claims of defamation, IP infringement, or privacy breaches, especially with new regulatory regimes and AI-generated content[252](index=252&type=chunk)[253](index=253&type=chunk) - Governments may restrict access to the Nextdoor platform or impair the ability to sell advertising in their countries, substantially harming the business[255](index=255&type=chunk)[256](index=256&type=chunk) - The business is subject to complex and evolving U.S. and foreign laws, regulations, and industry standards (e.g., data privacy, online safety, AI), with uncertain interpretations that could lead to burdensome compliance or liability[257](index=257&type=chunk) - Changes to liability protections for online platforms (e.g., CDA Section 230, EU DSA, UK OSA, Australia's Online Safety Act) could increase operational costs, litigation exposure, and regulatory sanctions[258](index=258&type=chunk)[259](index=259&type=chunk) - Increasing regulatory attention to AI systems (e.g., Colorado AI Act, Texas Responsible AI Governance Act, EU AI Act) could require modifications to AI use, incur substantial costs, and impact access to AI technologies[264](index=264&type=chunk)[268](index=268&type=chunk) - The obligations of operating as a public company (SEC reporting, Sarbanes-Oxley Act compliance) require significant resources and management attention, increasing expenses and potentially diverting focus from core business concerns[277](index=277&type=chunk)[279](index=279&type=chunk) - Failure to maintain effective internal controls and disclosure controls could harm business, lead to restatements of financial statements, and adversely affect investor confidence in the company[281](index=281&type=chunk)[282](index=282&type=chunk) [Risks Related to Intellectual Property](index=75&type=section&id=Risks%20Related%20to%20Intellectual%20Property) This section discusses risks concerning the protection and enforcement of intellectual property, potential infringement claims, and the use of open-source software - Failure to obtain, maintain, protect, or enforce intellectual property and proprietary rights (trademarks, copyrights, patents, trade secrets) could enable others to copy aspects of the platform without compensation, harming the brand and business[288](index=288&type=chunk)[291](index=291&type=chunk) - Third parties may claim that the platform infringes their intellectual property rights, potentially leading to costly litigation, damage to brand and reputation, and significant liability[294](index=294&type=chunk)[296](index=296&type=chunk) - The use of 'open source' software could subject the company to litigation, require public disclosure of proprietary source code, or necessitate obtaining licenses on unfavorable terms[297](index=297&type=chunk)[298](index=298&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) - Inability to maintain licenses for technology from third parties, or issues with such licensed technology, could harm the business by limiting platform development or forcing the use of alternative, potentially inferior, technology[302](index=302&type=chunk)[303](index=303&type=chunk) [Risks Related to Ownership of Our Class A Common Stock](index=80&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) This section addresses risks associated with stock price volatility, the dual-class structure, dividend policy, and anti-takeover provisions - The trading price of Class A common stock has been and may continue to be volatile due to various factors, including operating results, competitor developments, macroeconomic conditions, and market sentiment[304](index=304&type=chunk)[305](index=305&type=chunk) - The dual-class common stock structure, with Class B shares having **10 votes per share**, concentrates voting power with management and existing stockholders, limiting the ability of Class A holders to influence important transactions[308](index=308&type=chunk) - The company does not intend to pay cash dividends for the foreseeable future, focusing on business development, expansion, and the Share Repurchase Program[310](index=310&type=chunk) - Provisions in the company's charter documents and Delaware law, including anti-takeover provisions, could make an acquisition more difficult and limit attempts by stockholders to replace or remove current management[314](index=314&type=chunk)[315](index=315&type=chunk) - Exclusive forum provisions in the Certificate of Incorporation may limit stockholders' ability to choose a judicial forum for disputes with the company or its directors, officers, or employees[316](index=316&type=chunk)[317](index=317&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section reports on the absence of unregistered sales of equity securities, details the use of proceeds from the initial public offering and private placement, and summarizes the company's share repurchase activities for the quarter [Sales of Unregistered Securities](index=84&type=section&id=Sales%20of%20Unregistered%20Securities) This section confirms that no unregistered sales of equity securities occurred during the reporting period - There were **no unregistered sales** of equity securities during the period[321](index=321&type=chunk) [Use of Proceeds](index=84&type=section&id=Use%20of%20Proceeds) This section details the gross proceeds from the initial public offering and private placement, and their allocation - KVSB's initial public offering in March 2021 generated **$416.3 million** in gross proceeds, and a private placement generated **$11.3 million**[322](index=322&type=chunk)[323](index=323&type=chunk) - A total of **$416.3 million** was deposited into the trust account for the business combination. After deducting **$12.2 million** for redemptions and **$43.5 million** for business combination expenses, the remainder is held on the balance sheet[324](index=324&type=chunk) [Issuer Purchases of Equity Securities](index=85&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) This section summarizes the company's share repurchase activities, including the number of shares bought back and the remaining authorization | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------------ | :----------------------------- | :--------------------------- | | April 1, 2025 to April 30, 2025 | 3,688,863 | $1.46 | | May 1, 2025 to May 31, 2025 | — | — | | June 1, 2025 to June 30, 2025 | — | — | - As of June 30, 2025, **$82.8 million** remained available for future share repurchases under the Share Repurchase Program, which was extended to March 31, 2026[325](index=325&type=chunk) [Item 3. Defaults Upon Senior Securities](index=85&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - This item is **not applicable**[326](index=326&type=chunk) [Item 4. Mine Safety Disclosures](index=85&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - This item is **not applicable**[327](index=327&type=chunk) [Item 5. Other Information](index=85&type=section&id=Item%205.%20Other%20Information) This section provides information on Rule 10b5-1 trading plans adopted or modified by Section 16 officers during the quarter [Rule 10b5-1 Trading Plans](index=85&type=section&id=Rule%2010b5-1%20Trading%20Plans) This section details the Rule 10b5-1 trading plans adopted or modified by Section 16 officers for potential sales of Class A common shares - Section 16 officers are permitted to trade in company securities only pursuant to Rule 10b5-1 Plans[328](index=328&type=chunk) - Sophia Schwartz (General Counsel) modified her Rule 10b5-1 Plan on May 20, 2025, for the potential sale of up to **200,000 Class A common shares** between August 19, 2025, and December 31, 2025[329](index=329&type=chunk)[330](index=330&type=chunk) - Matt Anderson (Chief Financial Officer) entered into a new Rule 10b5-1 Plan on June 6, 2025, for the potential sale of up to **762,342 Class A common shares** between September 5, 2025, and September 30, 2026[331](index=331&type=chunk) [Item 6. Exhibits](index=88&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications from executive officers and various Inline XBRL documents - The report includes certifications of the Principal Executive Officer and Principal Financial Officer (Exhibits **31.1, 31.2, 32.1, 32.2**)[334](index=334&type=chunk) - Various Inline XBRL (eXtensible Business Reporting Language) documents are filed, including the Instance Document and Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents (Exhibits **101.INS to 101.PRE**)[334](index=334&type=chunk) - A Cover Page Interactive Data File, formatted in iXBRL, is also included as Exhibit **104**[334](index=334&type=chunk) [Signatures](index=89&type=section&id=SIGNATURES) This section contains the official signatures for the Quarterly Report on Form 10-Q, confirming its submission by authorized officers of Nextdoor Holdings, Inc [Report Signatures](index=89&type=section&id=Report%20Signatures) This section contains the official signatures for the Quarterly Report on Form 10-Q, confirming its submission by authorized officers of Nextdoor Holdings, Inc - The Quarterly Report on Form 10-Q was signed on **August 7, 2025**[339](index=339&type=chunk) - Signed by Nirav Tolia, Chief Executive Officer and President (Principal Executive Officer), and Matt Anderson, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)[339](index=339&type=chunk)

[Second Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operational%20Highlights) [Key Performance Metrics](index=1&type=section&id=Key%20Performance%20Metrics) Nextdoor reported a 3% year-over-year revenue increase to $65 million and a 1% year-over-year increase in Platform Weekly Active Users (WAU) to 21.8 million, while significantly reducing GAAP net loss to $15 million and adjusted EBITDA loss to $2 million, achieving positive operating cash flow for the third consecutive quarter Q2 2025 Key Financial and Operational Metrics | Metric | Q2 2025 | YoY Change | | :------------------------------------------------- | :-------- | :-------------------------- | | Revenue | $65 million | +3% | | Platform WAU | 21.8 million | +1% | | GAAP Net Loss | $15 million | Improved from $43M | | Adjusted EBITDA Loss | $2 million | Improved from $6M | | Operating Cash Flow | $3 million | Positive (3rd straight quarter) | | Ending Cash, Cash Equivalents, and Marketable Securities | $413 million | As of June 30, 2025 | [CEO Commentary and Strategic Direction](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Direction) CEO Nirav Tolia emphasized product-driven performance improvements leading to better user engagement, revenue, and profitability, highlighting the 'new Nextdoor' launch and a restructuring plan to reduce annualized operating expenses by approximately $30 million, aiming for adjusted EBITDA breakeven by Q4 2025 (quarterly) and FY 2026 (full-year) - CEO Nirav Tolia noted improvements in users, revenue, and profitability year-over-year, attributing success to product-driven performance for advertisers and the launch of the 'new Nextdoor' in mid-July[3](index=3&type=chunk) - Nextdoor announced a restructuring plan, including workforce reduction, to achieve approximately **$30 million** in reduced annualized operating expenses[3](index=3&type=chunk)[4](index=4&type=chunk) - The company expects to achieve quarterly adjusted EBITDA breakeven in **Q4 2025** and full-year adjusted EBITDA breakeven in **FY 2026**[3](index=3&type=chunk)[4](index=4&type=chunk) [Financial Performance Details](index=2&type=section&id=Financial%20Performance%20Details) [Condensed Consolidated Statements of Operations](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Nextdoor reported Q2 2025 revenue of $65.093 million, a 3% increase from $63.292 million in Q2 2024, with net loss significantly improving to $(15.362) million from $(42.781) million year-over-year, and loss from operations also improving to $(20.276) million from $(49.016) million Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :-------- | :-------- | | Revenue | $65,093 | $63,292 | | Loss from operations | $(20,276) | $(49,016) | | Net loss | $(15,362) | $(42,781) | | Adjusted EBITDA | $(2,247) | $(5,979) | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :-------- | :-------- | | Revenue | $119,269 | $116,438 | | Loss from operations | $(47,289) | $(83,765) | | Net loss | $(37,314) | $(71,042) | | Adjusted EBITDA | $(11,405) | $(19,994) | [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation shows a significant improvement in Adjusted EBITDA loss for Q2 2025 to $(2.247) million from $(5.979) million in Q2 2024, with the Adjusted EBITDA % Margin improving from (9)% to (3)%, primarily due to adjustments including stock-based compensation and the absence of restructuring charges in Q2 2025 Reconciliation of Net Loss to Adjusted EBITDA (Three Months Ended June 30) | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :-------- | :-------- | | Net loss | $(15,362) | $(42,781) | | Depreciation and amortization | 514 | 1,143 | | Stock-based compensation | 17,107 | 16,235 | | Interest income | $(4,774) | $(6,409) | | Provision for income taxes | 268 | 316 | | Restructuring charges | — | 25,517 | | **Adjusted EBITDA** | **$(2,247)** | **$(5,979)** | | Net loss % Margin | (24)% | (68)% | | Adjusted EBITDA % Margin | (3)% | (9)% | - Adjusted EBITDA % Margin improved by **6 percentage points** year-over-year, from **(9)%** in Q2 2024 to **(3)%** in Q2 2025[4](index=4&type=chunk)[8](index=8&type=chunk) [Strategic Initiatives and Leadership Updates](index=1&type=section&id=Strategic%20Initiatives%20and%20Leadership%20Updates) [Restructuring Plan and Cost Reduction](index=1&type=section&id=Restructuring%20Plan%20and%20Cost%20Reduction) Nextdoor announced a restructuring plan, including a workforce reduction, aimed at driving focus and efficiency, which is expected to reduce annualized operating expenses by approximately $30 million and is a strategic step towards achieving sustained long-term success and profitability targets - Nextdoor initiated a restructuring plan, including workforce reduction, to reduce annualized operating expenses by approximately **$30 million**[3](index=3&type=chunk)[4](index=4&type=chunk) - This strategic action is intended to better position Nextdoor for sustained, long-term success and achieve adjusted EBITDA breakeven targets[3](index=3&type=chunk) [Executive Leadership Changes](index=1&type=section&id=Executive%20Leadership%20Changes) Matthew Anderson is resigning from his position as Chief Financial Officer, effective September 1, 2025, and will remain in an advisory capacity through year-end, with Nextdoor initiating a comprehensive search for his successor - Matthew Anderson is resigning as CFO, effective **September 1, 2025**, and will serve in an advisory role until year-end[3](index=3&type=chunk)[5](index=5&type=chunk) - Nextdoor has begun a comprehensive search for a new Chief Financial Officer with an external executive search firm[3](index=3&type=chunk) [Product Leadership Appointment](index=2&type=section&id=Product%20Leadership%20Appointment) Craig Lisowski, a key figure in Nextdoor's product development for six years, has been appointed as the new President of Products, leading the entire product organization and focusing on continued innovation and execution, particularly following the launch of the 'new Nextdoor' - Craig Lisowski has been appointed President of Products, leading the full product organization after **six years** of driving product development[5](index=5&type=chunk)[6](index=6&type=chunk) - Lisowski's appointment is expected to ensure continued innovation and execution at scale, building on the recent launch of the 'new Nextdoor'[5](index=5&type=chunk)[6](index=6&type=chunk) [Non-GAAP Financial Measures Disclosure](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Disclosure) [Purpose and Use](index=3&type=section&id=Purpose%20and%20Use) Nextdoor uses non-GAAP measures like adjusted EBITDA to supplement GAAP statements for planning, evaluating core operating results, and facilitating comparisons with past performance and peer companies, excluding items such as stock-based compensation, depreciation, amortization, interest income, taxes, and restructuring charges - Non-GAAP financial measures (e.g., adjusted EBITDA) are used for planning, evaluating core operating results, and facilitating period-to-period and peer comparisons[12](index=12&type=chunk) - Excluded items from non-GAAP measures include stock-based compensation, depreciation and amortization, interest income, provision for income taxes, and restructuring/acquisition-related charges[12](index=12&type=chunk) [Limitations and Unreconciled Outlook](index=3&type=section&id=Limitations%20and%20Unreconciled%20Outlook) The company cautions investors about material limitations of non-GAAP measures, noting that stock-based compensation is a significant recurring expense and adjusted EBITDA does not reflect cash requirements for working capital, debt service, or tax payments, and Nextdoor does not reconcile its adjusted EBITDA outlook to GAAP net loss due to the unpredictability of certain GAAP-impacting items - Material limitations of non-GAAP measures include not reflecting significant recurring stock-based compensation, future capital expenditure requirements, or cash needs for working capital, debt service, and tax payments[13](index=13&type=chunk) - Nextdoor does not reconcile its adjusted EBITDA outlook to GAAP net loss due to the uncertainty and unpredictability of items like stock-based compensation expense[10](index=10&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) [About Nextdoor](index=4&type=section&id=About%20Nextdoor) Nextdoor is described as the essential neighborhood network connecting over 100 million verified neighbors, providing local news, safety alerts, recommendations, listings, and events, while also serving as a platform for businesses, news publishers, and public agencies to engage with communities - Nextdoor is an essential neighborhood network for over **100 million** verified neighbors, offering local news, safety alerts, recommendations, listings, and events[14](index=14&type=chunk) - The platform connects neighbors to local information and allows businesses, news publishers, and public agencies to engage with communities[14](index=14&type=chunk) [Investor Communications](index=3&type=section&id=Investor%20Communications) Nextdoor utilizes its Investor Relations website, X (formerly Twitter) handle, LinkedIn Home Page, and CEO Nirav Tolia's LinkedIn and X posts to disseminate news, financial performance updates, investor events, press releases, and to comply with Regulation FD - Nextdoor uses its Investor Relations website (investors.nextdoor.com), X handle (x.com/Nextdoor), LinkedIn Home Page, and CEO Nirav Tolia's LinkedIn and X posts for disseminating news, financial updates, and complying with Regulation FD[9](index=9&type=chunk) [Legal and Investor Information](index=4&type=section&id=Legal%20and%20Investor%20Information) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) The press release contains forward-looking statements about future business expectations and financial results, which are predictions and may differ materially from actual outcomes due to various risk factors detailed in SEC filings, and the company disclaims any obligation to update these statements beyond the release date, except as required by law - The press release contains forward-looking statements regarding future business expectations and financial results, which are subject to risks detailed in SEC filings (Form 10-Q for Q2 2025)[15](index=15&type=chunk)[16](index=16&type=chunk) - Nextdoor undertakes no obligation to update these forward-looking statements after the press release date, except as legally required[16](index=16&type=chunk) [Contacts](index=5&type=section&id=Contacts) Contact information is provided for investor relations and media inquiries - Investor Relations contacts are John T. Williams (jwilliams@nextdoor.com, ir@nextdoor.com) and the investors.nextdoor.com website[17](index=17&type=chunk) - Media Relations contact is Kelsey Grady (press@nextdoor.com)[17](index=17&type=chunk)

Group 1 - Nextdoor's hyper-localized audiences and ample cash position make it an interesting investment prospect with high upside potential [1] - The company is currently experiencing significant cash burn, raising concerns about monetization and profitability [1] - Observing megatrends and technological advancements can provide valuable insights for investment opportunities [1] Group 2 - The focus on marketing and business strategy is particularly relevant for medium-sized companies and startups [1] - The analyst has experience in evaluating startups and emerging industries, which adds depth to the analysis [1] - Emphasis on the importance of fundamentals, quality of leadership, and product pipeline in uncovering investment opportunities [1]

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]

Q1 2025 Performance - Nextdoor's Weekly Active Users (WAU) reached 46 million, a 6% year-over-year increase[8] - Q1 revenue totaled $54 million, up 2% year-over-year, with double-digit growth in all channels except large advertisers[8] - Operating expenses decreased by 8% year-over-year, contributing to margin improvement[8] NEXT Initiative - The NEXT initiative aims to deliver timely and relevant local content, deepen engagement, and drive increased revenue[11] - NEXT version 10 focuses on three key pillars: Informed (News), Safe (Alerts), and Smart (Recommendations)[16] - Nextdoor has already onboarded 3,000 local publishers for the News feature[21] Financial Outlook and Metrics - Q1 Platform WAU was 225 million, a 5% year-over-year increase[79] - Net loss for the quarter was $(22) million, with a net margin of (41)%, but net margin improved by 13 percentage points year-over-year[86] - Adjusted EBITDA was $(9) million, representing a (17)% margin, which improved by 9 percentage points year-over-year[91] - Nextdoor expects Q2 2025 revenue to be approximately $60 million, a (5)% year-over-year change, and Adjusted EBITDA to be approximately $(10) million, a $(4) million year-over-year change[97]

Financial Data and Key Metrics Changes - Weekly active users grew 6% year over year to 46.1 million [6][27] - Revenue rose 2% year over year to $54 million [7][31] - Q1 net loss was $22 million, representing a negative 41% margin, which is a 13 percentage point year over year margin improvement [34] - Q1 adjusted EBITDA loss was $9 million, or a negative 17% margin, representing nine percentage points of year over year improvement [34] Business Line Data and Key Metrics Changes - Platform Wow, which includes users engaging directly on the Nextdoor app or website, grew 5% year over year to 22.5 million [28][30] - Self-serve ad adoption rose, accounting for over 60% of revenue in Q1 [33] Market Data and Key Metrics Changes - Large advertisers reduced their spend year over year due to shifting budgets towards programmatic ad buying [32] - Other revenue channels delivered double-digit year over year growth in Q1 [33] Company Strategy and Development Direction - The company is focused on the rollout of the NeXT initiative, which aims to enhance user engagement and monetization through improved product offerings [8][25] - The strategy includes a shift towards more engaging content and a better user experience, aligning with consumer expectations [30][81] - The introduction of AI-driven features is expected to enhance local commerce and user interactions [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of NeXT to deepen engagement and drive increased monetization [23] - The company anticipates that the financial impact will follow product milestones, with a full launch expected by July [24][38] - Management expects Q2 revenue of approximately $60 million and an adjusted EBITDA loss of around $10 million [38] Other Important Information - The company ended the quarter with $418 million in cash and zero debt [35] - The focus on cost management and cash flow conversion has led to positive operating cash flow [34] Q&A Session Summary Question: Duration of NeXT initiatives impacting user growth and monetization - Management indicated that usage growth and engagement will precede monetization growth, with a clearer picture expected by the next earnings call [41][43] Question: Monetization strategy in a post-NeXT world - Management discussed three ways to enhance monetization: increased engagement leading to more supply, new advertising surfaces, and AI-driven solutions for local needs [49][51][53] Question: Hyperlocal alert strategy and its impact on usage - Management explained that the new alert system will provide more relevant notifications, which is expected to enhance user engagement [60][62][64] Question: Awareness of new UI and marketing costs - Management plans to utilize existing user communication channels and earned media rather than a large marketing expense to drive awareness of the new features [77][80] Question: New disclosures around user metrics - Management clarified that the new disclosures align with consumer expectations and focus on in-app experiences, which are where monetization will occur [81][82]

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 ...