This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: CC0 Public Domain "Nextdoor" is the world's largest hyperlocal social media network, used by 13% of American adults. Yet little is known about the make-up of the actual neighborhoods—numbering approximately 220,000 across the United States—in which these accounts exist and what people in those communities talk about on th ...

Both of these companies anticipate reaching positive cash flow sooner than they expected.It wasn't too long ago that it was fully acceptable, and maybe even expected, for unprofitable growth stocks to command high valuations as long as they were growing. With access to as much cheap capital as needed, there wasn't much of a need to focus on efficiency.That's changed over the past couple of years as interest rates have risen and investor appetite for speculation has dwindled. So, we saw many growth companies ...

Nextdoor Holdings, Inc. (KIND) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.09. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this company would post a loss of $0.11 per share when it actually produced a loss of $0.08, delivering a surprise of 27.27%.Over the last four quarters, the company has ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40246 Nextdoor Holdings, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 86-1776836 (State or Other Jurisdi ...

Exhibit 99.1 A Letter From Our CEO Dear Shareholders, It is a great honor to reconnect with you as Nextdoor's CEO. Today, I have the same feelings of excitement and possibility as I did when we created this company fourteen years ago. Nextdoor has grown tremendously since then, but I believe our best times are clearly still ahead. In Silicon Valley, there is a commonly held belief that companies benefit when their founders return. I believe this is due in part to the value of the "Founder's Mentality" — a p ...

Financial Data and Key Metrics Changes - Q4 revenue reached $56 million, growing 4% year-over-year, with expectations for continued trends into Q1 [9][39] - Q4 ARPU was stable at $1.33 year-over-year, with mid-market advertisers increasing their average spend by over 125% year-over-year [36][39] - Q4 adjusted EBITDA was a loss of $14 million, representing a negative 25% margin, but showed a 7% point improvement year-over-year [37][39] Business Line Data and Key Metrics Changes - Revenue from home services vertical grew 16% year-over-year in Q4, recovering from a decline in Q3 [11][51] - Self-serve customers now contribute over 40% of total revenue, indicating strong growth in this segment [10][11] - The transition to the Nextdoor Ads Server is complete for 100% of Nextdoor Ads Manager impression demand, marking a key milestone [12][84] Market Data and Key Metrics Changes - The company ended the quarter with $531 million in cash and cash equivalents, with zero debt [58] - Verified Neighbors grew to over 88 million, a 13% year-over-year increase, with weekly active users (WAU) growing to 41.8 million, up 5% year-over-year [18][39] - Session depth increased by 36% year-over-year, reflecting more ad impression opportunities during user sessions [19][57] Company Strategy and Development Direction - The company is focused on increasing user engagement, advertiser growth, and retention while reducing costs to enable growth and positive free cash flow [20][41] - A $150 million increase in the share repurchase program demonstrates confidence in the business and opportunity [4][58] - The strategy includes leveraging AI and machine learning to enhance user experience and ad delivery [21][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued user and engagement growth, with expectations for revenue growth in 2024 to exceed that of 2023 [28][59] - The company is seeing a diversification in advertising verticals, with emerging sectors like healthcare and government gaining traction [24][74] - Management acknowledged challenges in certain verticals like financial services and travel but remains focused on recovery as the macro environment improves [80][73] Other Important Information - The CEO announced plans to step down, with Nirav Tolia designated as the incoming CEO, ensuring a smooth transition [5][6] - The company is investing in real-time messaging and community engagement to enhance user experience [48][67] Q&A Session Summary Question: User engagement and conversion trends - Management noted sustained organic growth in Verified Neighbors and emphasized the importance of providing value to users to maintain engagement [66][68] Question: Seasonality in user metrics - Management clarified that while there are seasonal trends, the sustained growth in new neighbor acquisition helps neutralize these effects [76][89] Question: Ad server benefits and vertical performance - The transition to the ad server has driven growth in self-serve ads, with notable performance in home services and retail sectors [84][85]

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) [Forward-Looking Statements Overview](index=4&type=section&id=Forward-Looking%20Statements%20Overview) This section highlights that the Annual Report contains forward-looking statements about Nextdoor's future expectations, hopes, beliefs, intentions, strategies, and financial position, subject to risks and uncertainties detailed in the 'Risk Factors' section, where actual results may differ materially from those anticipated - Forward-looking statements cover anticipated growth (new neighbor growth, engagement, monetization), business scaling, macroeconomic climate impacts (advertising industry, global banking, recession, inflation, interest rates), international expansion, technology investments, profitability, capital access, strategic relationships, stock listing, regulatory changes, internal control effectiveness, and impacts from catastrophic events[9](index=9&type=chunk) - Readers are cautioned not to rely on forward-looking statements as predictions of future events, as actual results could differ materially due to competitive and rapidly changing environments, and the company expressly disclaims any duty to update such statements[11](index=11&type=chunk)[12](index=12&type=chunk) [Risk Factor Summary](index=7&type=section&id=Risk%20Factor%20Summary) [Key Business Risks](index=7&type=section&id=Key%20Business%20Risks) Nextdoor's business faces numerous risks, including a limited operating history and challenges in scaling monetization, vulnerability to adverse global economic conditions, heavy reliance on advertising revenue, intense competition, and dependence on maintaining and scaling its technical infrastructure, with a history of net losses and uncertain sustained profitability - Limited operating history and scaling monetization efforts make future prospects difficult to evaluate, with no assurance of sustained growth[16](index=16&type=chunk) - Adverse global economic and financial conditions (e.g., health epidemics, wars, inflation, interest rates) could harm business and financial condition, especially given the majority of revenue is from the U.S[16](index=16&type=chunk) - Substantially all revenue comes from advertising; reductions in advertiser spending would adversely impact the business[16](index=16&type=chunk) - The business operates in a highly competitive environment, posing an ongoing threat to success[16](index=16&type=chunk) - Dependence on maintaining and scaling product offerings and technical infrastructure means significant disruptions could damage reputation and lead to loss of users and engagement[16](index=16&type=chunk) - Failure to effectively scale the business, build strong brand identity, or successfully expand international operations could adversely affect financial results[16](index=16&type=chunk) - Potential need for additional capital, dependence on attracting and retaining talented employees, and reliance on third-party software/service providers (e.g., Google Ad Manager, AWS) are significant risks[16](index=16&type=chunk) - Threats include ad-blocking technologies, security breaches, reliance on third-party distribution platforms (e.g., mobile app stores), and potential liability from content on the platform[16](index=16&type=chunk) - The company has a history of net losses and may continue to experience them, making sustained profitability uncertain[19](index=19&type=chunk) - Other risks include potential tax liabilities, uncertainty regarding the Share Repurchase Program, complex and evolving U.S. and foreign laws/regulations, legal disputes, and challenges in maintaining effective internal controls[19](index=19&type=chunk) [PART I](index=9&type=section&id=PART%20I) [Business Overview](index=9&type=section&id=Item%201.%20Business) Nextdoor operates a platform focused on fostering local community connections, enabling neighbors, businesses, and public services to exchange information, goods, and services, generating revenue primarily through advertising solutions, leveraging unique local data and AI/ML to enhance targeting and user experience, while emphasizing a 'kind platform' through community guidelines and moderation, and expanding internationally with technology and human capital investments - Nextdoor's purpose is to cultivate a kinder world where everyone has a neighborhood they can rely on, connecting neighbors, businesses, and public services[21](index=21&type=chunk) - As of December 31, 2023, Nextdoor was active in over **325,000 neighborhoods** globally and in **1 in 3 U.S. households**, with **88 million global Verified Neighbors**[21](index=21&type=chunk) - The platform offers features like Feed, Discover tab (maps for neighbors, groups, businesses, events), Search, and a local marketplace (For Sale & Free)[23](index=23&type=chunk)[24](index=24&type=chunk) - Nextdoor provides critical, real-time information from trusted officials and leverages a unique local data set (events, safety reports, recommendations, demographics) and AI/ML for improved notifications, interactions, ad delivery, and content moderation[25](index=25&type=chunk)[26](index=26&type=chunk) - Advertising solutions aim to generate value for businesses by enabling targeted reach based on local context, supporting brand awareness, consideration, and sales across various platform surfaces (Feed, Search, For Sale & Free, email)[27](index=27&type=chunk)[28](index=28&type=chunk) - The ad platform primarily uses an auction-based system, selecting ads based on likelihood of desired action and advertiser value, with continuous improvements in ad formats and purchase/delivery methods[29](index=29&type=chunk)[30](index=30&type=chunk) - Nextdoor offers measurement solutions, including a Conversion API, and utilizes its neighborhood graph for effective targeting of high-value audiences (homeowners, parents, recent movers)[32](index=32&type=chunk)[33](index=33&type=chunk) - The company's go-to-market strategy combines a self-service ads platform with a dedicated global sales force for managed campaigns[34](index=34&type=chunk) - Nextdoor fosters a 'kind platform' through clear Community Guidelines, real-name/address verification, a Neighbor Pledge, and a combination of human review (nearly **200,000 volunteer moderators**) and AI/ML tools (Kindness Reminder, Post Assistant) to promote civility and positive engagement[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - Technology investments focus on enhancing user and customer experiences globally, including generative AI for content personalization and kindness, and proprietary ad platform improvements for targeting and measurement[38](index=38&type=chunk)[39](index=39&type=chunk) - Intellectual property protection relies on patents (**10 issued in the U.S.** as of Dec 31, 2023), trademarks (NEXTDOOR, logos), copyrights, domain names, trade secrets, and contractual agreements[40](index=40&type=chunk)[42](index=42&type=chunk) - As of December 31, 2023, Nextdoor had **594 employees** across the U.S. and international locations, guided by core values like 'Earn trust everyday' and 'Invest in community'[44](index=44&type=chunk)[47](index=47&type=chunk) - The company emphasizes Diversity, Equity, Inclusion, and Belonging (DEIB) in talent recruitment, retention, and development, reflected in diverse leadership and active Employee Resource Groups[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - Nextdoor competes with social media companies (Meta, Alphabet), home services, classifieds, real estate, recommendations, and search engines, but believes its singular focus on neighborhood networks, user base, local trusted information, and network effects provide a competitive advantage[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The company is subject to complex and evolving U.S. and foreign laws and regulations concerning data privacy, intellectual property, content, advertising, and consumer protection, with new legislation (e.g., DSA, Online Safety Act) potentially increasing compliance burdens and liabilities[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - Nextdoor Holdings, Inc. was incorporated in Delaware on January 29, 2021, following a business combination with Legacy Nextdoor on November 5, 2021, and is headquartered in San Francisco, California[59](index=59&type=chunk)[60](index=60&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) This section details the significant risks that could adversely affect Nextdoor's business, operating results, financial condition, and stock price, spanning operational challenges, market competition, technological dependencies, financial uncertainties, legal and regulatory compliance, and factors related to stock ownership - Risks include limited operating history, difficulty scaling monetization, adverse global economic conditions, heavy reliance on advertising revenue, intense competition, and dependence on platform availability and technical infrastructure[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Technological risks involve dependence on third-party providers (e.g., Google Ad Manager, AWS), ad-blocking technologies, security breaches, and potential errors or vulnerabilities in software and hardware[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - Financial risks include significant fluctuations in operating results, potential inaccuracies in key metric estimates, a history of net losses, limitations on net operating loss (NOL) utilization, changes in accounting principles, foreign currency exchange rate fluctuations, and greater than anticipated tax liabilities[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Legal and regulatory risks encompass liability for platform content, government restrictions on access, complex and evolving laws (e.g., data privacy, content regulation), and potential involvement in expensive and time-consuming legal disputes, including intellectual property claims[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) - Risks related to stock ownership include volatility in Class A common stock price, the dual-class structure concentrating voting power, no intention to pay cash dividends, and potential securities litigation[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) [Unresolved Staff Comments](index=56&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments from the SEC - No unresolved staff comments[225](index=225&type=chunk) [Cybersecurity](index=56&type=section&id=Item%201C.%20Cybersecurity) Nextdoor employs a comprehensive, cross-functional cybersecurity strategy based on industry standards to manage risks, preserve data confidentiality, security, and availability, with the Board of Directors, through the Audit & Risk Committee, overseeing cybersecurity risks with guidance from the Chief Information Security Officer (CISO) - Nextdoor's cybersecurity strategy involves enterprise risk management, vulnerability management, vendor risk management, privacy risk management, security monitoring, and incident response[226](index=226&type=chunk) - In 2023, no cybersecurity threats materially affected or were reasonably likely to materially affect the business strategy, results of operations, or financial condition[227](index=227&type=chunk) - The Board of Directors oversees cybersecurity risks via periodic updates from the CISO to the Audit & Risk Committee[228](index=228&type=chunk)[229](index=229&type=chunk) - The CISO has over **20 years of experience** in technology and cybersecurity, holding multiple security certifications[230](index=230&type=chunk) [Properties](index=58&type=section&id=Item%202.%20Properties) Nextdoor's headquarters are in San Francisco, California, and it maintains leased offices in various U.S. and international locations, believing its current facilities are adequate and suitable additional space will be available if needed - Headquarters are in San Francisco, California, with approximately **115,770 square feet**[231](index=231&type=chunk) - As of December 31, 2023, offices are maintained in the United States, Canada, the United Kingdom, the Netherlands, Ireland, France, and Australia, all of which are leased[44](index=44&type=chunk)[231](index=231&type=chunk) [Legal Proceedings](index=58&type=section&id=Item%203.%20Legal%20Proceedings) Nextdoor is not currently a party to any legal proceedings that would individually or collectively have a material adverse effect on its business or financial results - No material adverse legal proceedings or claims are currently pending against the company[232](index=232&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Nextdoor Holdings, Inc - Not applicable[233](index=233&type=chunk) [PART II](index=59&type=section&id=PART%20II) [Market for Common Equity, Stockholder Matters, and Equity Purchases](index=59&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Nextdoor's Class A common stock trades on the NYSE under 'KIND', while Class B common stock is not publicly traded, with the company having a dual-class structure, no intention to pay cash dividends, and an active share repurchase program that was recently increased and extended - Class A common stock began trading on the New York Stock Exchange (NYSE) under the symbol 'KIND' on November 8, 2021, while Class B common stock is not listed or traded[236](index=236&type=chunk) - As of February 23, 2024, there were **72 stockholders of record** for Class A common stock and **318** for Class B common stock[237](index=237&type=chunk) - The company has never declared or paid cash dividends and does not expect to in the foreseeable future, intending to retain earnings for business development and the Share Repurchase Program[238](index=238&type=chunk)[213](index=213&type=chunk) - On May 31, 2022, a Share Repurchase Program of up to **$100.0 million** for Class A common stock was authorized, expiring June 30, 2024, with **$22.8 million** remaining available as of December 31, 2023[244](index=244&type=chunk) - On February 21, 2024, the Board approved an increase of **$150.0 million** to the Share Repurchase Program and extended the expiration date to March 31, 2026[244](index=244&type=chunk)[465](index=465&type=chunk)[466](index=466&type=chunk) - The company's initial public offering in March 2021 generated **$416.3 million** gross proceeds, and a private placement added **$11.3 million**, with **$416.3 million** initially deposited into a trust account after redemptions and transaction costs[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk) [[Reserved]](index=60&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Nextdoor's financial performance for 2023 showed a 3% increase in revenue to $218.3 million, but net loss increased to $147.8 million, primarily due to higher operating expenses including restructuring charges, as the company implemented a cost reduction plan, reducing headcount by 25%, and continues to invest in user engagement, monetization, and international expansion, maintaining strong liquidity with $531.1 million in cash and marketable securities - Nextdoor's purpose is to cultivate a kinder world where everyone has a neighborhood they can rely on, serving **88 million global Verified Neighbors** across **325,000+ neighborhoods** as of Q4 2023[250](index=250&type=chunk) Key Business Metrics (Q4 2023 vs. Q4 2022) | Metric | Q4 2023 | Q4 2022 | Change (%) | | :----- | :------ | :------ | :--------- | | WAUs (millions) | 41.8 | 40.0 | 5% | | ARPU ($) | $1.33 | $1.33 | 0% | Financial Results (Year Ended December 31, 2023 vs. 2022) | Metric | 2023 (in millions) | 2022 (in millions) | Change (%) | | :----- | :----------------- | :----------------- | :--------- | | Revenue | $218.3 | $212.8 | 3% | | Total Costs & Expenses | $390.6 | $357.0 | 9% | | Net Loss | $(147.8) | $(137.9) | 7% | | Adjusted EBITDA Loss | $(74.1) | $(75.5) | -2% | | Cash, Cash Equivalents, & Marketable Securities | $531.1 | $583.3 | -9% | - In Q4 2023, Nextdoor implemented a Cost Reduction Plan, including a **25% reduction** in full-time employee headcount, resulting in **$11.1 million** in restructuring charges[252](index=252&type=chunk)[253](index=253&type=chunk) - Revenue increase was driven by increased advertiser demand and user engagement (**9% increase** in 2023 WAUs), despite a **6% decrease** in full-year ARPU due to stronger WAU growth relative to revenue growth[281](index=281&type=chunk) - Operating expenses increased, with Research and Development up **18% ($22.9 million)** due to higher personnel costs and third-party software, and General and Administrative up **12% ($8.3 million)** also due to personnel costs[283](index=283&type=chunk)[285](index=285&type=chunk) - Sales and Marketing expenses remained flat, with a **$14.7 million decrease** in performance marketing for user acquisition (shift to organic channels) offset by a **$15.3 million increase** in personnel-related costs[284](index=284&type=chunk) - Interest income significantly increased by **177% ($16.5 million)** due to higher interest rates[286](index=286&type=chunk) - Cash used in operating activities decreased slightly to **$59.3 million** in 2023 from **$60.5 million** in 2022, primarily due to non-cash charges (stock-based compensation, depreciation) and net cash inflows from changes in operating assets and liabilities[295](index=295&type=chunk)[297](index=297&type=chunk) - Cash provided by investing activities was **$66.5 million** in 2023, a significant shift from **$342.4 million** used in 2022, driven by proceeds from maturities and sales of marketable securities offsetting new purchases[298](index=298&type=chunk)[299](index=299&type=chunk) - Cash provided by financing activities was **$8.9 million** in 2023, mainly from stock option exercises and ESPP, compared to **$64.3 million** used in 2022 due to common stock repurchases[300](index=300&type=chunk)[301](index=301&type=chunk) - Adjusted EBITDA loss decreased by **2%** to **$74.1 million** in 2023, reflecting adjustments for non-cash items like stock-based compensation and restructuring charges[302](index=302&type=chunk)[304](index=304&type=chunk) - Critical accounting policies include revenue recognition (primarily advertising impressions), leases (ROU assets and liabilities), stock-based compensation (Black-Scholes model), and income taxes (deferred taxes, valuation allowance)[307](index=307&type=chunk)[308](index=308&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Nextdoor is exposed to market risks primarily from fluctuations in interest rates and foreign currency exchange rates, with its investment portfolio being short-term, limiting interest rate sensitivity, and while most revenue is USD-denominated, international operating expenses create foreign currency exposure, though currently not hedged - Market risk exposure primarily stems from fluctuations in interest rates and foreign currency exchange rates[314](index=314&type=chunk) - As of December 31, 2023, cash and cash equivalents were **$60.2 million** and marketable securities were **$470.9 million**, and due to the short-term nature of the investment portfolio, a hypothetical **100 basis point** change in interest rates would not materially affect its fair value[315](index=315&type=chunk) - The majority of revenue is U.S. Dollar-denominated, limiting foreign currency risk on revenue, however, international operating expenses (e.g., British Pound, Euro, Canadian Dollar, Australian Dollar) are subject to exchange rate fluctuations[316](index=316&type=chunk)[317](index=317&type=chunk) - The company does not currently hedge foreign currency exposure but may do so if it becomes more significant[317](index=317&type=chunk) [Financial Statements and Supplementary Data](index=76&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Nextdoor's audited consolidated financial statements for the years ended December 31, 2023, 2022, and 2021, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with independent auditor's reports and detailed notes on significant accounting policies, financial instruments, and other financial disclosures - The consolidated financial statements include the balance sheets, statements of operations, comprehensive loss, redeemable convertible preferred stock and stockholders' equity, and cash flows for the periods ended December 31, 2023, 2022, and 2021[323](index=323&type=chunk) - Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements and on the effectiveness of internal control over financial reporting as of December 31, 2023[323](index=323&type=chunk)[324](index=324&type=chunk)[334](index=334&type=chunk) - A critical audit matter identified was Revenue Recognition, due to complex proprietary systems and high volume of low monetary value transactions, requiring significant audit effort to test completeness and accuracy[327](index=327&type=chunk)[330](index=330&type=chunk) Consolidated Balance Sheet Highlights (as of December 31, in thousands) | Item | 2023 | 2022 | | :-------------------------------- | :----- | :----- | | Total Assets | $654,564 | $699,562 | | Total Liabilities | $96,007 | $88,494 | | Total Stockholders' Equity | $558,557 | $611,068 | Consolidated Statements of Operations Highlights (Year Ended December 31, in thousands) | Item | 2023 | 2022 | 2021 | | :------------------------ | :----- | :----- | :----- | | Revenue | $218,309 | $212,765 | $192,197 | | Total Costs and Expenses | $390,593 | $356,969 | $287,003 | | Loss from Operations | $(172,284) | $(144,204) | $(94,806) | | Net Loss | $(147,765) | $(137,916) | $(95,325) | Consolidated Statements of Cash Flows Highlights (Year Ended December 31, in thousands) | Item | 2023 | 2022 | 2021 | | :------------------------------------ | :------- | :------- | :------- | | Net cash used in operating activities | $(59,273) | $(60,503) | $(51,268) | | Net cash provided by (used in) investing activities | $66,490 | $(342,448) | $(149,522) | | Net cash provided by (used in) financing activities | $8,916 | $(64,348) | $637,576 | - Key accounting policies include revenue recognition (primarily advertising impressions), fair value measurements (Level 1 and 2 inputs), and stock-based compensation (Black-Scholes model)[307](index=307&type=chunk)[310](index=310&type=chunk)[365](index=365&type=chunk)[383](index=383&type=chunk) - As of December 31, 2023, the company had federal NOL carryforwards of **$413.6 million** (expiring from 2028) and state NOL carryforwards of **$280.8 million** (expiring from 2029), with a full valuation allowance recorded against U.S. net deferred tax assets[152](index=152&type=chunk)[154](index=154&type=chunk)[458](index=458&type=chunk) - The company's 401(k) plan includes a company match, totaling **$1.7 million** in 2023[454](index=454&type=chunk) - Revenue disaggregated by geography shows the United States accounted for **$206.5 million** in 2023, with International revenue at **$11.8 million**[462](index=462&type=chunk) - A cost reduction plan in Q4 2023 resulted in **$11.1 million** in restructuring charges, primarily for severance and stock-based compensation, with **$1.8 million** in remaining liabilities as of December 31, 2023[463](index=463&type=chunk)[464](index=464&type=chunk) - Subsequent events include the February 21, 2024, increase of **$150.0 million** to the Share Repurchase Program (totaling **~$172.8 million** remaining capacity) and extension to March 31, 2026, and the announcement of Nirav Tolia returning as CEO, President, and Chairperson, with Sarah Friar stepping down in Q2 2024[465](index=465&type=chunk)[466](index=466&type=chunk)[468](index=468&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=111&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure matters - No changes in or disagreements with accountants on accounting and financial disclosure[469](index=469&type=chunk) [Controls and Procedures](index=111&type=section&id=Item%209A.%20Controls%20and%20Procedures) Nextdoor's management concluded that its disclosure controls and procedures were effective as of December 31, 2023, providing reasonable assurance for financial reporting, and the company also maintained effective internal control over financial reporting, though acknowledging inherent limitations in any control system - Management, with the participation of principal executive and financial officers, concluded that disclosure controls and procedures were effective as of December 31, 2023, at a reasonable assurance level[470](index=470&type=chunk) - Management assessed and concluded that internal control over financial reporting was effective as of December 31, 2023, based on the COSO framework[471](index=471&type=chunk) - No changes in internal control over financial reporting materially affected or are reasonably likely to materially affect controls during the period[472](index=472&type=chunk) - The company acknowledges that control systems provide only reasonable, not absolute, assurance and have inherent limitations, such as faulty judgments, simple errors, collusion, or management override[473](index=473&type=chunk) [Other Information](index=111&type=section&id=Item%209B.%20Other%20Information) There is no other information to report under this item - No other information to report[474](index=474&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=111&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Nextdoor Holdings, Inc - Not applicable[475](index=475&type=chunk) [PART III](index=112&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=112&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the 2024 Proxy Statement[477](index=477&type=chunk) [Executive Compensation](index=112&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the 2024 Proxy Statement[478](index=478&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=112&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, and related stockholder matters, is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the 2024 Proxy Statement[479](index=479&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=112&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships and related transactions, and director independence, is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the 2024 Proxy Statement[480](index=480&type=chunk) [Principal Accountant Fees and Services](index=112&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the 2024 Proxy Statement[481](index=481&type=chunk) [PART IV](index=113&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=113&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all financial statements, financial statement schedules, and exhibits filed as part of the 10-K report, including various agreements, plans, and certifications - Includes financial statements (see Part II, Item 8) and a comprehensive list of exhibits, such as the Agreement and Plan of Merger, Amended and Restated Certificate of Incorporation and Bylaws, equity incentive plans, executive offer letters, and various certifications[484](index=484&type=chunk)[486](index=486&type=chunk)[487](index=487&type=chunk)[488](index=488&type=chunk) [Form 10-K Summary](index=114&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K summary is provided - No Form 10-K Summary is provided[490](index=490&type=chunk) [SIGNATURES](index=115&type=section&id=SIGNATURES) [Signatures and Power of Attorney](index=115&type=section&id=Signatures%20and%20Power%20of%20Attorney) The Annual Report on Form 10-K is signed by authorized officers and directors of Nextdoor Holdings, Inc., including the Chief Executive Officer, President, and Chairperson of the Board, Sarah Friar, and the Chief Financial Officer and Treasurer, Matt Anderson, as of February 27, 2024, with a power of attorney granted to these officers for filing amendments - The Annual Report was signed on February 27, 2024, by Sarah Friar (CEO, President, and Chairperson) and Matt Anderson (CFO and Treasurer), along with other directors[494](index=494&type=chunk)[496](index=496&type=chunk) - A power of attorney is granted to Sarah Friar and Matt Anderson to sign and file any amendments to the report with the SEC[495](index=495&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): February 23, 2024 Nextdoor Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 001-40246 86-1776836 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) 420 Taylor Street San Francisco, California (Address of princi ...

Financial Performance & Outlook - Q3 2023 revenue was $56 million, a 4% year-over-year increase, driven by SMB growth but offset by slower growth from US direct-sold advertisers[39, 87] - Q3 adjusted EBITDA loss was $20 million, representing a (35%) margin, compared to $18 million and a (34%) margin in the year-ago period[48] - The company expects Q4 2023 revenue to be in the range of $50 million to $52 million[2] - The company expects Q4 adjusted EBITDA to be in the range of ($21) million to ($19) million, excluding one-time expenses[2] - The company expects FY 2023 revenue to be in the range of $213 million to $215 million, flat to slightly higher vs FY 2022[3] - The company expects FY 2023 adjusted EBITDA to be in the range of ($81) million to ($79) million, excluding one-time expenses[3] User Growth & Engagement - Weekly Active Users (WAU) grew 6% year-over-year to 404 million, but decreased 3% quarter-over-quarter due to deliberate limitations on notification volumes[83, 90] - New unpaid Verified Neighbor additions increased 32% quarter-over-quarter and 23% year-over-year[3] - Session depth increased approximately 30% year-over-year, indicating higher user engagement[3, 86] Strategic Initiatives - The company is targeting quarterly free cash flow breakeven by the end of 2025[1] - The company plans to reduce GAAP personnel expenses by up to $60 million annually and non-GAAP personnel expenses by approximately $45 million annually through a 25% workforce reduction[96] - International revenue grew 79% year-over-year in Q3, driven by new logo growth and increased awareness of the platform[89]

[Part I - Financial Information](index=8&type=section&id=Part%20I%20-%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Nextdoor Holdings, Inc.'s unaudited condensed consolidated financial statements, reporting a net loss of $38.1 million for Q3 2023 and $107.2 million for the first nine months of 2023 [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $48,444 | $55,236 | | Marketable securities | $491,283 | $528,067 | | Total Assets | $670,100 | $699,562 | | Total Liabilities | $96,919 | $88,494 | | Total Stockholders' Equity | $573,181 | $611,068 | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2023 (in thousands) | Q3 2022 (in thousands) | YTD 2023 (in thousands) | YTD 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $56,092 | $53,954 | $162,752 | $159,495 | | Total costs and expenses | $100,468 | $90,346 | $287,382 | $267,368 | | Loss from operations | $(44,376) | $(36,392) | $(124,630) | $(107,873) | | Net loss | $(38,116) | $(34,717) | $(107,235) | $(104,508) | | Net loss per share | $(0.10) | $(0.09) | $(0.28) | $(0.27) | [Condensed Consolidated Statements of Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive Loss Summary (in thousands) | Metric | Q3 2023 (in thousands) | Q3 2022 (in thousands) | YTD 2023 (in thousands) | YTD 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(38,116) | $(34,717) | $(107,235) | $(104,508) | | Comprehensive loss | $(38,066) | $(35,135) | $(107,251) | $(107,882) | [Condensed Consolidated Statements of Stockholders' Equity](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity decreased from **$611.1 million** at the end of 2022 to **$573.2 million** as of September 30, 2023, primarily driven by a net loss of **$107.2 million**, partially offset by **$60.7 million** in stock-based compensation[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(44,336) | $(40,797) | | Net cash provided by (used in) investing activities | $40,188 | $(325,407) | | Net cash provided by (used in) financing activities | $8,455 | $(65,660) | | Net increase (decrease) in cash | $4,379 | $(431,081) | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - As of September 30, 2023, the company had **$22.8 million** available for future share repurchases under its Share Repurchase Program, authorized through June 30, 2024, with no shares repurchased during the three and nine months ended September 30, 2023[68](index=68&type=chunk) Stock-Based Compensation Expense (in thousands) | Period | Q3 2023 (in thousands) | Q3 2022 (in thousands) | YTD 2023 (in thousands) | YTD 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total | $23,343 | $17,270 | $60,735 | $46,957 | Revenue by Geography (in thousands) | Region | Q3 2023 (in thousands) | Q3 2022 (in thousands) | YTD 2023 (in thousands) | YTD 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | United States | $52,964 | $52,205 | $154,239 | $153,715 | | International | $3,128 | $1,749 | $8,513 | $5,780 | | **Total** | **$56,092** | **$53,954** | **$162,752** | **$159,495** | - Subsequent to the quarter end, on November 7, 2023, the company announced a Cost Reduction Plan impacting approximately **25% of its full-time employees**, estimating one-time charges of approximately **$12 million** in cash expenditures and **$0.5 million** in stock-based compensation expense, with the majority expected in Q4 2023[81](index=81&type=chunk)[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial performance, noting a 4% revenue increase to $56.1 million, 6% WAU growth to 40.4 million, but a 2% ARPU decrease and a widened net loss of $38.1 million [Key Business Metrics](index=25&type=section&id=Key%20Business%20Metrics) - Weekly Active Users (WAUs) grew **6% year-over-year**, reaching **40.4 million** for the three months ended September 30, 2023, up from **38.3 million** in the same period of 2022[87](index=87&type=chunk)[89](index=89&type=chunk) - Average Revenue Per Weekly Active User (ARPU) decreased by **2% to $1.39** for the three months ended September 30, 2023, compared to **$1.41** in the prior-year period, attributed to WAU growth outpacing revenue growth[87](index=87&type=chunk)[94](index=94&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Revenue Change (in thousands) | Period | Q3 2023 (in thousands) | Q3 2022 (in thousands) | Change ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $56,092 | $53,954 | $2,138 | 4% | - Research and development expenses increased by **19%** in Q3 2023 compared to Q3 2022, primarily due to a **$5.1 million** increase in personnel-related costs driven by higher headcount[115](index=115&type=chunk) - Sales and marketing expenses increased **5%** in Q3 2023, driven by a **$4.1 million** increase in personnel costs, partially offset by a **$2.7 million** decrease in brand and performance marketing spend as focus shifted to organic user acquisition[117](index=117&type=chunk) - Interest income increased by **150% to $6.8 million** in Q3 2023 from **$2.7 million** in Q3 2022, primarily driven by higher interest rates[121](index=121&type=chunk)[122](index=122&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2023, the company had **$539.7 million** in cash, cash equivalents, and marketable securities, with an accumulated deficit of **$725.5 million**, and expects to continue incurring operating losses for the foreseeable future[128](index=128&type=chunk)[129](index=129&type=chunk) - Net cash used in operating activities was **$44.3 million** for the nine months ended September 30, 2023, compared to **$40.8 million** in the same period of 2022[133](index=133&type=chunk)[134](index=134&type=chunk) - The company has a share repurchase program with **$22.8 million** remaining available for future repurchases as of September 30, 2023, with no shares repurchased during the quarter[132](index=132&type=chunk) [Non-GAAP Financial Measure](index=36&type=section&id=Non-GAAP%20Financial%20Measure) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q3 2023 (in thousands) | Q3 2022 (in thousands) | YTD 2023 (in thousands) | YTD 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(38,116) | $(34,717) | $(107,235) | $(104,508) | | Adjusted EBITDA | $(19,799) | $(18,366) | $(60,065) | $(58,349) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures stem from interest rate and foreign currency fluctuations, with management assessing no material impact from hypothetical 100 basis point or 10% changes respectively - The company's investment portfolio is subject to interest rate risk, but due to its short-term nature, a hypothetical **100 basis point change** in interest rates is not expected to have a material effect on its fair value[147](index=147&type=chunk) - While operating expenses are subject to foreign currency fluctuations, the majority of revenue is denominated in U.S. Dollars, and a **10% change** in the U.S. Dollar's relative value is not believed to have materially affected its financial statements[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[149](index=149&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[150](index=150&type=chunk) [Part II - Other Information](index=40&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial results - The company is not presently a party to any legal proceedings that would individually or in aggregate have a material adverse effect on its business or financial results[155](index=155&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section details risks including advertising revenue dependence, intense competition, user growth challenges, security breaches, third-party reliance, historical net losses, evolving regulations, and stock ownership risks [Risks Related to Business and Industry](index=41&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) - The company has a limited operating history at its current scale and is still in the early stages of monetization, making future prospects difficult to evaluate[158](index=158&type=chunk)[159](index=159&type=chunk) - Substantially all revenue is generated from advertising; a reduction in advertiser spending due to macroeconomic conditions, competition, or changes in platform effectiveness could adversely impact financial results[161](index=161&type=chunk) - The business is highly competitive, facing threats from large companies like Meta and Alphabet, which have broader product offerings and greater resources[172](index=172&type=chunk) - In November 2023, the company initiated a restructuring plan to reduce its workforce by approximately **25%** to manage costs and improve efficiency in response to changing economic conditions[186](index=186&type=chunk) [Risks Related to Security and Technology](index=57&type=section&id=Risks%20Related%20to%20Security%20and%20Technology) - The company is dependent on third-party software and service providers, including Google Ad Manager (GAM) for ad delivery and Amazon Web Services (AWS) for platform hosting, where any failure or interruption could significantly disrupt business[207](index=207&type=chunk)[208](index=208&type=chunk) - Security breaches, hacking, and phishing attacks pose a significant risk, potentially leading to improper disclosure of user data, harm to the company's reputation, and legal or regulatory action[215](index=215&type=chunk) - Distribution and access to the platform depend on third-party mobile app stores, and changes in their policies, such as Apple's App Tracking Transparency framework, could limit the ability to target and measure advertising effectively[224](index=224&type=chunk) [Risks Related to Financial and Accounting Matters](index=63&type=section&id=Risks%20Related%20to%20Financial%20and%20Accounting%20Matters) - The company has a history of net losses, including **$107.2 million** for the first nine months of 2023, and an accumulated deficit of **$725.5 million** as of September 30, 2023, with future profitability not assured[238](index=238&type=chunk) - Operating results may fluctuate significantly due to factors like advertiser spending, macroeconomic conditions, and seasonality, making future performance difficult to predict[230](index=230&type=chunk) - The company's key metrics, such as WAUs, are calculated using internal data and are subject to inaccuracies, particularly due to changes like Apple's email privacy features which require estimations[236](index=236&type=chunk) [Risks Related to Legal and Regulatory Matters](index=68&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Matters) - The company may be held liable for content published by users on its platform, facing claims of defamation, intellectual property infringement, or other damages, despite protections like the CDA and DMCA[249](index=249&type=chunk)[250](index=250&type=chunk) - The business is subject to complex and evolving U.S. and foreign laws regarding data privacy and security, such as the GDPR in Europe and the CCPA/CPRA in California, which could increase compliance costs and potential liability[253](index=253&type=chunk)[257](index=257&type=chunk)[259](index=259&type=chunk) - New regulations like the EU's Digital Services Act (DSA) and the UK's Online Safety Act will impose new obligations for content moderation, potentially increasing liability and compliance costs[256](index=256&type=chunk) [Risks Related to Ownership of Class A Common Stock](index=82&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) - The stock price has been and may continue to be volatile due to a variety of factors including operating results, competitor actions, and market conditions[296](index=296&type=chunk) - The dual-class stock structure concentrates voting power with holders of Class B common stock (10 votes per share), limiting the influence of Class A stockholders on corporate matters[299](index=299&type=chunk) - The company does not intend to pay cash dividends for the foreseeable future, planning to retain earnings for business development and its share repurchase program[301](index=301&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section confirms no unregistered equity sales, details IPO proceeds use, and notes no share repurchases during the quarter, with $22.8 million remaining for future repurchases - The company did not repurchase any shares of its Class A common stock during the three and nine months ended September 30, 2023[318](index=318&type=chunk) - As of September 30, 2023, **$22.8 million** remained available for future repurchases under the authorized Share Repurchase Program, which expires on June 30, 2024[318](index=318&type=chunk) [Item 3. Defaults Upon Senior Securities](index=89&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable to the company's current financial structure or reporting requirements - Not applicable[319](index=319&type=chunk) [Item 4. Mine Safety Disclosures](index=89&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations or industry - Not applicable[319](index=319&type=chunk) [Item 5. Other Information](index=89&type=section&id=Item%205.%20Other%20Information) This section contains no additional material information to report - None[320](index=320&type=chunk) [Item 6. Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and XBRL data files