[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

Financial Data and Key Metrics Changes - Q2 revenue was $57 million, representing a 4% year-over-year growth, with increasing momentum throughout the quarter [86] - Q2 ARPU was $1.37, declining 7% year-over-year, reflecting a growing WAU and impressions that outpaced revenue growth [3] - Adjusted EBITDA loss for Q2 was $19 million, with a negative margin of 33%, showing a four-point year-over-year improvement [3][58] Business Line Data and Key Metrics Changes - Mid-market advertisers showed strength with a 17% increase in new logos quarter-over-quarter [86] - The SMB business returned to revenue growth, contributing positively to overall performance [86] - International revenue grew by 28% year-over-year, with a 79% increase in new logos internationally compared to Q2 2022 [59] Market Data and Key Metrics Changes - WAU grew 13% year-over-year to 41.6 million globally, although it declined slightly sequentially [138] - Session growth increased by 24% since the end of 2022, indicating strong underlying engagement trends [138] - Over 90% of global verified neighbors came to the platform organically in Q2, signaling strong product-market fit [54][19] Company Strategy and Development Direction - The company is focused on growing WAU and revenue while investing in long-term opportunities [31] - There is a significant emphasis on AI and machine learning to enhance user engagement and content personalization [39][55] - The strategy includes deepening relationships with advertising agencies to unlock new customer spending and diversify revenue [59][70] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in the ad market, with sequential improvements in mid-market businesses and SMB growth [23][127] - The company expects Q3 adjusted EBITDA loss to be between $20 million and $21 million, with a focus on margin improvement for the full year [60] - There is optimism regarding the potential for AI to drive both WAU and revenue outcomes, leveraging the unique local knowledge graph [135][119] Other Important Information - The Nextdoor Ads Manager is now available for new advertisers, with existing advertisers being migrated to the improved experience [139] - The company has seen a strong performance in verticals such as healthcare and travel, while financial services and real estate remain muted [136] - The classified business sees over $1 billion per month in pre-sale and free items, indicating a robust marketplace [99] Q&A Session Summary Question: Insights on WAU decline - Management indicated that WAU growth is primarily driven by top-of-funnel verified neighbor growth, with a focus on driving session depth [19][76] Question: Advertising environment and vertical performance - Management described the advertising environment as stabilizing, with a noted recovery in Q2, and highlighted strength in new verticals like healthcare and travel [127][136] Question: Timeline for advertiser migration to ads manager - The company is currently migrating existing advertisers to the new ads manager, with positive feedback on the improved experience [139][122] Question: Contextually relevant ads and user experience - Management emphasized the importance of contextual relevance in ads, which enhances user experience and advertiser outcomes [100][57]

[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section provides an overview of forward-looking statements within the report, highlighting their inherent risks and the company's disclaimer regarding future updates [Forward-Looking Statements Overview](index=3&type=section&id=Forward-Looking%20Statements%20Overview) This section highlights that the Quarterly Report contains forward-looking statements about the company's future expectations, hopes, beliefs, intentions, strategies, operating results, and financial position - Forward-looking statements cover anticipated growth (neighbor growth, engagement, monetization), business scaling, macroeconomic climate impacts (banking turmoil, labor shortages, recession, inflation, interest rates), international expansion, technology investments, profitability, capital access, strategic relationships, NYSE listing, regulatory changes, internal controls, catastrophic events, future financing, and retention of key personnel[9](index=9&type=chunk) - The company operates in a competitive and rapidly changing environment, making it impossible to predict all risks or assess the full impact of factors that may cause actual results to differ materially from forward-looking statements[11](index=11&type=chunk) - The company expressly disclaims any duty to update forward-looking statements after the filing date, except as required by law[12](index=12&type=chunk) [Risk Factor Summary](index=6&type=section&id=Risk%20Factor%20Summary) This section summarizes the principal risks and uncertainties that could adversely affect the company's business, operations, and financial condition [Principal Risks and Uncertainties](index=6&type=section&id=Principal%20Risks%20and%20Uncertainties) This section provides a summary of the principal risks and uncertainties that could adversely affect the company's business, operating results, and financial condition - **Limited operating history** and scaling monetization efforts make it difficult to evaluate current business and future prospects, with no assurance of sustained growth[17](index=17&type=chunk) - Adverse global economic conditions (e.g., inflation, rising interest rates, potential recession, banking turmoil) could harm business and financial condition[17](index=17&type=chunk) - Substantial reliance on **advertising revenue** means reductions in advertiser spending would adversely impact the business[17](index=17&type=chunk) - High competition poses an ongoing threat to business success[17](index=17&type=chunk) - Dependence on maintaining and scaling product offerings and technical infrastructure; significant disruptions could damage reputation and lead to loss of users/engagement[17](index=17&type=chunk) - Failure to manage rapid growth effectively could adversely affect business, operating results, and financial condition[17](index=17&type=chunk) - Inability to attract or retain neighbors if brand identity and reputation efforts are unsuccessful[17](index=17&type=chunk) - Plans for **international expansion** face increased business, regulatory, and economic risks due to limited operating experience[17](index=17&type=chunk) - Need for additional capital in the future may not be available on favorable terms, if at all[17](index=17&type=chunk) - Dependence on attracting and retaining talented employees, including senior management; loss of key personnel could hinder business strategy execution[17](index=17&type=chunk) - Reliance on **third-party software and service providers** (e.g., Google Ad Manager, AWS) for ad management, delivery, and platform infrastructure; failures could adversely impact business[17](index=17&type=chunk) - **Ad-blocking technologies** could adversely impact advertising revenue[17](index=17&type=chunk) - **Security breaches** or improper access to data could harm reputation and business[17](index=17&type=chunk) - Distribution and marketing depend on third-party publishers and platforms; changes in terms could materially adversely affect business[17](index=17&type=chunk) - Market opportunity and key metric estimates could be inaccurate, harming reputation and business[20](index=20&type=chunk) - History of **net losses** and potential for future losses; inability to achieve or sustain profitability would adversely affect financial condition[20](index=20&type=chunk) - Potential for greater than anticipated tax liabilities[20](index=20&type=chunk) - **Share Repurchase Program** may not be fully consummated or enhance long-term stockholder value, and could increase stock volatility or diminish cash reserves[20](index=20&type=chunk) - Potential liability from content or information published on the platform[20](index=20&type=chunk) - Subject to complex and evolving U.S. and foreign laws, regulations, and industry standards, with uncertain interpretations[20](index=20&type=chunk) - Risk of expensive and time-consuming legal disputes[20](index=20&type=chunk) - Failure to maintain effective internal controls and disclosure controls could have a material adverse effect[20](index=20&type=chunk) - Inability to protect intellectual property could diminish brand value and adversely affect business[20](index=20&type=chunk) - Third parties may claim platform infringes their intellectual property rights[20](index=20&type=chunk) - Use of 'open source' software could lead to litigation or unfavorable licensing terms[20](index=20&type=chunk) - Inability to maintain licenses for third-party technology could harm business[20](index=20&type=chunk) - Volatility of Class A common stock price[20](index=20&type=chunk) - **Dual class common stock structure** concentrates voting power with management and existing stockholders, limiting influence on important transactions[20](index=20&type=chunk) - No intention to pay cash dividends for the foreseeable future[20](index=20&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, management's discussion and analysis of financial condition, market risk disclosures, and controls and procedures [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 the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with their accompanying notes, providing a detailed financial overview for the periods ended June 30, 2023 and December 31, 2022 [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (in thousands) | Item | As of June 30, 2023 | As of December 31, 2022 | | :-------------------------------- | :------------------ | :-------------------- | | **Assets** | | | | Cash and cash equivalents | $74,268 | $55,236 | | Marketable securities | $477,322 | $528,067 | | Accounts receivable, net | $28,383 | $29,770 | | Prepaid expenses and other current assets | $12,090 | $12,185 | | Total current assets | $592,063 | $625,258 | | Restricted cash, non-current | $11,226 | — | | Property and equipment, net | $9,947 | $11,818 | | Operating lease right-of-use assets | $59,246 | $52,555 | | Intangible assets, net | $2,192 | $3,067 | | Goodwill | $1,211 | $1,211 | | Other assets | $8,152 | $5,653 | | **Total assets** | **$684,037** | **$699,562** | | **Liabilities** | | | | Accounts payable | $5,957 | $4,535 | | Operating lease liabilities, current | $5,838 | $7,766 | | Accrued expenses and other current liabilities | $25,281 | $22,362 | | Total current liabilities | $37,076 | $34,663 | | Operating lease liabilities, non-current | $63,616 | $53,831 | | Other liabilities, non-current | $267 | — | | **Total liabilities** | **$100,959** | **$88,494** | | **Stockholders' Equity** | | | | Class A common stock | $17 | $15 | | Class B common stock | $21 | $22 | | Additional paid-in capital | $1,272,676 | $1,231,482 | | Accumulated other comprehensive loss | $(2,262) | $(2,196) | | Accumulated deficit | $(687,374) | $(618,255) | | **Total stockholders' equity** | **$583,078** | **$611,068** | | **Total liabilities and stockholders' equity** | **$684,037** | **$699,562** | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, including revenue, expenses, and net loss for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Operations (in thousands, except per share data) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenue | $56,889 | $54,541 | $106,660 | $105,541 | | Cost of revenue | $10,438 | $10,187 | $20,351 | $19,242 | | Research and development | $37,117 | $32,699 | $70,099 | $61,659 | | Sales and marketing | $31,386 | $32,627 | $60,595 | $63,688 | | General and administrative | $19,390 | $17,283 | $35,869 | $32,433 | | Total costs and expenses | $98,331 | $92,796 | $186,914 | $177,022 | | Loss from operations | $(41,442) | $(38,255) | $(80,254) | $(71,481) | | Interest income | $6,356 | $2,153 | $11,869 | $2,644 | | Other income (expense), net | $(193) | $(708) | $(309) | $(893) | | Loss before income taxes | $(35,279) | $(36,810) | $(68,694) | $(69,730) | | Provision for income taxes | $124 | $33 | $425 | $61 | | Net loss | $(35,403) | $(36,843) | $(69,119) | $(69,791) | | Net loss per share, basic and diluted | $(0.09) | $(0.10) | $(0.18) | $(0.18) | | Weighted average shares, basic and diluted | 375,896 | 385,127 | 374,469 | 383,512 | [Condensed Consolidated Statements of Comprehensive Loss](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section details the company's comprehensive loss, including net loss and other comprehensive income/loss items, for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(35,403) | $(36,843) | $(69,119) | $(69,791) | | Foreign currency translation adjustments | $24 | $418 | $43 | $492 | | Change in unrealized loss on available-for-sale marketable securities | $(1,600) | $(1,862) | $(109) | $(3,448) | | Total other comprehensive loss | $(1,576) | $(1,444) | $(66) | $(2,956) | | Comprehensive loss | $(36,979) | $(38,287) | $(69,185) | $(72,747) | [Condensed Consolidated Statements of Stockholders' Equity](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section presents the changes in the company's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit, for the six months ended June 30, 2023 Key Changes in Stockholders' Equity (in thousands) - Six Months Ended June 30, 2023 | Item | Class A Common Stock (Shares) | Class A Common Stock (Amount) | Class B Common Stock (Shares) | Class B Common Stock (Amount) | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | | :------------------------------------ | :---------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | :------------------------- | :----------------------------------- | :------------------ | :------------------------- | | Balances as of Dec 31, 2022 | 153,693 | $15 | 218,029 | $22 | $1,231,482 | $(2,196) | $(618,255) | $611,068 | | Release of restricted stock units | 4,053 | — | — | — | — | — | — | — | | Conversion from Class B to Class A | 8,835 | $1 | (8,835) | $(1) | — | — | — | — | | Issuance of common stock upon exercise of stock options | 1,281 | — | — | — | $2,563 | — | — | $2,563 | | Issuance of common stock under ESPP | 560 | $1 | — | — | $1,075 | — | — | $1,076 | | Vesting of early exercised stock options | — | — | — | — | $164 | — | — | $164 | | Stock-based compensation | — | — | — | — | $37,392 | — | — | $37,392 | | Other comprehensive loss | — | — | — | — | — | $(66) | — | $(66) | | Net loss | — | — | — | — | — | — | $(69,119) | $(69,119) | | Balances as of June 30, 2023 | 168,422 | $17 | 209,194 | $21 | $1,272,676 | $(2,262) | $(687,374) | $583,078 | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Cash Flows (in thousands) | Item | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(26,049) | $(28,121) | | Net cash provided by (used in) investing activities | $52,625 | $(435,600) | | Net cash provided by (used in) financing activities | $3,639 | $(18,397) | | Effect of exchange rate changes on cash and cash equivalents | $43 | $492 | | Net increase (decrease) in cash and cash equivalents | $30,258 | $(481,626) | | Cash, cash equivalents, and restricted cash at beginning of period | $55,236 | $521,812 | | Cash, cash equivalents, and restricted cash at end of period | $85,494 | $40,186 | | Cash and cash equivalents (Balance Sheet) | $74,268 | $40,186 | | Restricted cash, non-current (Balance Sheet) | $11,226 | — | | Total cash, cash equivalents, and restricted cash | $85,494 | $40,186 | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes accompanying the condensed consolidated financial statements, offering further insights into accounting policies, specific financial line items, and other relevant disclosures [Note 1. Description of Business](index=15&type=section&id=Note%201.%20Description%20of%20Business) Nextdoor Holdings, Inc. is headquartered in San Francisco, California, and aims to cultivate a kinder world by being the neighborhood hub for trusted connections and the exchange of helpful information, goods, and services - Nextdoor's purpose is to cultivate a kinder world where everyone has a neighborhood they can rely on, serving as a hub for trusted connections and exchange of information, goods, and services[38](index=38&type=chunk) - The company consummated a Reverse Recapitalization on **November 5, 2021**, with Khosla Ventures Acquisition Co. II, which was subsequently renamed Nextdoor Holdings, Inc[39](index=39&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 basis of presentation for the unaudited condensed consolidated financial statements, which adhere to U.S. GAAP and include all wholly-owned subsidiaries - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and include the Company and its wholly-owned subsidiaries[40](index=40&type=chunk) - The preparation of financial statements requires management to make estimates and assumptions, which could differ materially from actual results[43](index=43&type=chunk) - The Company adopted ASU 2016-13, 'Financial Instruments—Credit Losses (Topic 326)', as of **January 1, 2023**, which did not have an impact on the condensed consolidated financial statements[47](index=47&type=chunk) [Note 3. Deferred Revenue](index=17&type=section&id=Note%203.%20Deferred%20Revenue) Deferred revenue represents payments collected upfront from customers for advertising arrangements before revenue recognition Deferred Revenue (in millions) | Metric | As of June 30, 2023 | As of December 31, 2022 | | :-------------------------------- | :------------------ | :-------------------- | | Deferred Revenue Balance | $7.6 | $6.0 | Revenue Recognized from Deferred Revenue (in millions) | Period | 2023 | 2022 | | :-------------------------------- | :--- | :--- | | Three Months Ended June 30, | $2.8 | $2.5 | | Six Months Ended June 30, | $2.8 | $2.8 | [Note 4. Cash Equivalents and Marketable Securities](index=17&type=section&id=Note%204.%20Cash%20Equivalents%20and%20Marketable%20Securities) This note details the amortized costs, unrealized gains and losses, and estimated fair values of the company's cash equivalents and marketable securities Cash Equivalents and Marketable Securities Fair Value (in thousands) - As of June 30, 2023 | Item | Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | | :---------------------- | :------------- | :-------------- | :-------------- | :------------------- | | Money market funds | $51,608 | — | — | $51,608 | | Certificates of deposit | $35,214 | $2 | $(38) | $35,178 | | Commercial paper | $103,194 | $2 | $(101) | $103,095 | | Corporate bonds | $149,881 | $33 | $(1,095) | $148,819 | | U.S. Treasury securities | $71,234 | — | $(938) | $70,296 | | U.S. Agency bonds | $103,366 | $3 | $(324) | $103,045 | | Asset-backed securities | $16,949 | $1 | $(61) | $16,889 | | **Total** | **$531,446** | **$41** | **$(2,557)** | **$528,930** | Cash Equivalents and Marketable Securities Fair Value (in thousands) - As of December 31, 2022 | Item | Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | | :---------------------- | :------------- | :-------------- | :-------------- | :------------------- | | Money market funds | $20,381 | — | — | $20,381 | | Corporate bonds | $6,021 | $3 | — | $6,024 | | Commercial paper | $9,394 | — | $(3) | $9,391 | | Certificates of deposit | $44,732 | $9 | $(191) | $44,550 | | Commercial paper | $100,909 | $27 | $(92) | $100,844 | | Corporate bonds | $280,023 | $11 | $(1,980) | $278,054 | | U.S. Treasury securities | $41,646 | $3 | $(123) | $41,526 | | U.S. Agency bonds | $46,366 | $66 | $(22) | $46,410 | | Asset-backed securities | $16,798 | — | $(115) | $16,683 | | **Total** | **$566,270** | **$119** | **$(2,526)** | **$563,863** | Contractual Maturities of Marketable Securities (in thousands) - As of June 30, 2023 | Maturity Period | Amortized Cost | Estimated Fair Value | | :-------------------- | :------------- | :------------------- | | Due within one year | $332,433 | $331,509 | | Due after one to three years | $147,405 | $145,813 | | **Total** | **$479,838** | **$477,322** | Contractual Maturities of Marketable Securities (in thousands) - As of December 31, 2022 | Maturity Period | Amortized Cost | Estimated Fair Value | | :-------------------- | :------------- | :------------------- | | Due within one year | $473,133 | $471,378 | | Due after one to four years | $57,341 | $56,689 | | **Total** | **$530,474** | **$528,067** | [Note 5. Fair Value Measurements](index=18&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note classifies the company's financial assets and liabilities measured at fair value on a recurring basis into Level 1 and Level 2 of the fair value hierarchy, with no Level 3 inputs Fair Value Measurements (in thousands) - As of June 30, 2023 | Item | Level 1 | Level 2 | Total | | :----------------------------------- | :------ | :------ | :------ | | Money market funds | $51,608 | — | $51,608 | | Certificates of deposit | — | $35,178 | $35,178 | | Commercial paper | — | $103,095 | $103,095 | | Corporate bonds | — | $148,819 | $148,819 | | U.S. Treasury securities | — | $70,296 | $70,296 | | U.S. Agency bonds | — | $103,045 | $103,045 | | Asset-backed securities | — | $16,889 | $16,889 | | **Total cash equivalents and marketable securities** | **$51,608** | **$477,322** | **$528,930** | Fair Value Measurements (in thousands) - As of December 31, 2022 | Item | Level 1 | Level 2 | Total | | :----------------------------------- | :------ | :------ | :------ | | Money market funds | $20,381 | — | $20,381 | | Corporate bonds | — | $6,024 | $6,024 | | Commercial paper | — | $9,391 | $9,391 | | Certificates of deposit | — | $44,550 | $44,550 | | Commercial paper | — | $100,844 | $100,844 | | Corporate bonds | — | $278,054 | $278,054 | | U.S. Treasury securities | — | $41,526 | $41,526 | | U.S. Agency bonds | — | $46,410 | $46,410 | | Asset-backed securities | — | $16,683 | $16,683 | | **Total cash equivalents and marketable securities** | **$20,381** | **$543,482** | **$563,863** | [Note 6. Leases](index=20&type=section&id=Note%206.%20Leases) The company has non-cancellable office facility leases, primarily for its San Francisco headquarters, with terms extending to 2032 after an amendment in January 2023 Components of Lease Costs (in thousands) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating lease cost | $2,333 | $2,445 | $4,704 | $4,891 | | Short-term lease cost | $415 | $296 | $813 | $570 | | Variable lease cost | $868 | $242 | $1,312 | $414 | | **Total** | **$3,616** | **$2,983** | **$6,829** | **$5,875** | Other Operating Lease Information (in thousands) | Item | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :---------------------------------------------------- | :----------------------------- | :----------------------------- | | Cash paid for operating leases | $5,097 | $4,948 | | ROU assets obtained for new operating lease liabilities | $9,107 | — | Lease Terms and Discount Rates | Item | As of June 30, 2023 | As of June 30, 2022 | | :-------------------------------- | :------------------ | :------------------ | | Weighted average remaining lease term (years) | 8.8 | 6.8 | | Weighted average discount rate | 7.1% | 4.5% | Future Minimum Lease Payments (in thousands) - As of June 30, 2023 | Period | Amount | | :---------------- | :----- | | Remainder of 2023 | $5,250 | | 2024 | $10,657 | | 2025 | $10,977 | | 2026 | $10,777 | | 2027 | $10,586 | | Thereafter | $44,391 | | **Total lease payments** | **$92,638** | | Less: imputed interest | $(23,184) | | **Present value of lease liabilities** | **$69,454** | | Less: current operating lease liabilities | $(5,838) | | **Long-term operating lease liabilities** | **$63,616** | [Note 7. Commitments and Contingencies](index=21&type=section&id=Note%207.%20Commitments%20and%20Contingencies) This note addresses the company's legal matters, indemnification obligations, and a loan agreement with Opportunity Finance Network (OFN) - No material adverse impact on consolidated results of operations, cash flows, or financial position is expected from pending legal matters as of June 30, 2023 and December 31, 2022[60](index=60&type=chunk) - The company did not incur material costs for indemnification claims during the three and six months ended June 30, 2023 and 2022, and believes the fair value of these liabilities is not material[60](index=60&type=chunk) - During the three and six months ended June 30, 2023, the company made a **$2.5 million loan disbursement** to Opportunity Finance Network (OFN) as part of a **$15.0 million unsecured credit agreement**[61](index=61&type=chunk) [Note 8. Common Stock and Stockholders' Equity](index=21&type=section&id=Note%208.%20Common%20Stock%20and%20Stockholders'%20Equity) This note details the company's common stock subject to repurchase, equity incentive plans (2021 Plan and 2021 ESPP), and the Share Repurchase Program - As of June 30, 2023, less than **$0.1 million** was recorded for **4,792 unvested shares** of common stock subject to repurchase[62](index=62&type=chunk) - The **2021 Equity Incentive Plan** reserves shares for stock-based awards, with automatic annual increases based on outstanding Class A and Class B common stock[65](index=65&type=chunk) - The **2021 Employee Stock Purchase Plan (ESPP)** allows eligible employees to purchase Class A common stock at a discount, with **559,707 shares purchased** during the three and six months ended June 30, 2023[66](index=66&type=chunk) - The Board authorized a **$100.0 million Share Repurchase Program** expiring June 30, 2024; no shares were repurchased during the three and six months ended June 30, 2023, leaving **$22.8 million available**[67](index=67&type=chunk)[69](index=69&type=chunk) Stock Option Activity (in thousands, except per share data) - Six Months Ended June 30, 2023 | Item | Number of Options | Weighted Average Exercise Price | | :-------------------------------- | :---------------- | :------------------------------ | | Outstanding at December 31, 2022 | 55,388 | $2.67 | | Options granted | 2,029 | $2.11 | | Options exercised | (1,281) | $2.00 | | Options forfeited or expired | (2,752) | $2.64 | | **Outstanding at June 30, 2023** | **53,384** | **$2.67** | | Exercisable at June 30, 2023 | 32,371 | $2.13 | | Vested or expected to vest at June 30, 2023 | 53,389 | $2.67 | RSU Activity (in thousands, except per share data) - Six Months Ended June 30, 2023 | Item | Number of Shares | Weighted Average Grant Date Fair Value | | :-------------------------- | :--------------- | :------------------------------------- | | Unvested at December 31, 2022 | 21,986 | $4.25 | | RSUs granted | 18,791 | $2.31 | | RSUs vested | (4,053) | $3.91 | | RSUs forfeited | (2,442) | $4.26 | | **Unvested at June 30, 2023** | **34,282** | **$3.23** | [Note 9. Net Loss Per Share Attributable to Common Stockholders](index=24&type=section&id=Note%209.%20Net%20Loss%20Per%20Share%20Attributable%20to%20Common%20Stockholders) This note provides the computation of basic and diluted net loss per share for Class A and Class B common stockholders Net Loss Per Share Attributable to Common Stockholders (in thousands, except per share data) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss attributable to Class A common stockholders | $(15,141) | $(11,793) | $(29,219) | $(18,425) | | Net loss attributable to Class B common stockholders | $(20,262) | $(25,050) | $(39,900) | $(51,366) | | Weighted average shares used in computing net loss per share (Class A) | 160,763 | 123,271 | 158,299 | 101,248 | | Weighted average shares used in computing net loss per share (Class B) | 215,133 | 261,856 | 216,170 | 282,264 | | Net loss per share (Class A) | $(0.09) | $(0.10) | $(0.18) | $(0.18) | | Net loss per share (Class B) | $(0.09) | $(0.10) | $(0.18) | $(0.18) | Potentially Dilutive Securities Excluded from Diluted Net Loss Per Share (in thousands) | Item | As of June 30, 2023 | As of June 30, 2022 | | :------------------------------------------ | :------------------ | :------------------ | | Outstanding stock options | 53,384 | 55,440 | | Unvested RSUs | 34,282 | 15,620 | | Unvested early exercised stock options subject to repurchase | 5 | 266 | | Unvested restricted stock | — | 1,284 | | Shares issuable pursuant to the ESPP | 2,121 | 4,040 | | Contingently issuable shares | 7 | 7 | | **Total** | **89,799** | **76,657** | [Note 10. Income Taxes](index=25&type=section&id=Note%2010.%20Income%20Taxes) The company's income tax provision for interim periods is based on an estimated annual effective tax rate, adjusted for discrete items Income Tax Expense (in millions) | Period | 2023 | 2022 | | :-------------------------- | :--- | :--- | | Three Months Ended June 30, | $0.1 | < $0.1 | | Six Months Ended June 30, | $0.4 | $0.1 | - Income tax expense is primarily related to foreign taxes[79](index=79&type=chunk) [Note 11. Geographical Information](index=25&type=section&id=Note%2011.%20Geographical%20Information) This note disaggregates revenue by customer geography, showing that the majority of the company's revenue and substantially all of its long-lived assets are located in the United States Revenue by Geography (in thousands) | Region | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | United States | $54,460 | $52,648 | $101,275 | $101,509 | | International | $2,429 | $1,893 | $5,385 | $4,032 | | **Total** | **$56,889** | **$54,541** | **$106,660** | **$105,541** | - Substantially all of the Company's long-lived assets are located in the United States[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&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, highlighting key business metrics, revenue and expense trends, liquidity, and capital resources [Overview](index=26&type=section&id=Overview) Nextdoor's mission is to be the neighborhood hub for trusted connections and information exchange, operating in over 310,000 neighborhoods globally - Nextdoor operates in over **310,000 neighborhoods globally** and is in **1 in 3 households in the United States** as of June 30, 2023[83](index=83&type=chunk) Key Financial and Business Metrics | Metric | Three Months Ended June 30, 2023 | Change YoY | Six Months Ended June 30, 2023 | Change YoY | | :------------------------------------ | :------------------------------- | :--------- | :------------------------------ | :--------- | | Weekly Active Users (WAUs) | 41.6 million | +13% | N/A | N/A | | Average Revenue per WAU (ARPU) | $1.37 | -7% | N/A | N/A | | Revenue | $56.9 million | +4% | $106.7 million | +1% | | Total costs and expenses | $98.3 million | +6% | $186.9 million | +6% | | Net loss | $(35.4) million | -4% | $(69.1) million | -1% | | Adjusted EBITDA loss | $(18.6) million | -7% | $(40.3) million | +1% | | Cash, cash equivalents, and marketable securities | $551.6 million (as of June 30, 2023) | N/A | N/A | N/A | [Key Business Metrics](index=26&type=section&id=Key%20Business%20Metrics) The company uses Weekly Active Users (WAUs) and Average Revenue per Weekly Active User (ARPU) to evaluate business performance - **Weekly Active Users (WAUs) increased by 13% year-over-year**, reaching **41.6 million** for the three months ended June 30, 2023[87](index=87&type=chunk) - **Average Revenue per Weekly Active User (ARPU) decreased by 7% year-over-year to $1.37** for the three months ended June 30, 2023, primarily due to stronger WAU growth relative to revenue growth[92](index=92&type=chunk) - U.S. ARPU is higher due to earlier monetization focus, audience size and maturity, and the size of the U.S. advertising market[92](index=92&type=chunk) [Components of Results of Operations](index=29&type=section&id=Components%20of%20Results%20of%20Operations) This section defines the components of the company's results of operations - Substantially all revenue is generated from online display advertisements (CPM, CPC, fixed-fee basis), with the majority from the United States[95](index=95&type=chunk) - Cost of revenue includes third-party hosting, allocated personnel costs for revenue-generating products, and credit card transaction fees[96](index=96&type=chunk)[97](index=97&type=chunk) - Research and development expenses consist mainly of personnel-related costs, consultants, contractors, third-party software, and allocated overhead[98](index=98&type=chunk) - Sales and marketing expenses include personnel costs, commissions, third-party consulting, public relations, brand and performance marketing (user and customer acquisition), and neighbor services[99](index=99&type=chunk)[100](index=100&type=chunk) - General and administrative expenses cover personnel costs for executives, finance, legal, IT, HR, professional services, and allocated overhead[101](index=101&type=chunk) - Interest income is earned on cash, cash equivalents, and marketable securities[102](index=102&type=chunk) - Other income (expense), net, primarily consists of unrealized gains/losses from non-functional currency re-measurement and foreign currency transaction gains/losses[103](index=103&type=chunk) - Provision for income taxes is mainly for foreign and state jurisdictions, with a full valuation allowance on U.S. federal and state deferred tax assets[104](index=104&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) The company's revenue increased by 4% for Q2 2023 and 1% for the six months ended June 30, 2023, driven by improved advertiser demand and user engagement Revenue (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $56,889 | $54,541 | $2,348 | 4% | | Six Months Ended June 30, | $106,660 | $105,541 | $1,119 | 1% | - Revenue increase was primarily due to improvements in advertiser demand and increased user engagement (**13% increase in Q2 WAUs**); ARPU decreased **7% (Q2)** and **11% (YTD)** due to stronger WAU growth relative to revenue growth[109](index=109&type=chunk)[110](index=110&type=chunk) Cost of Revenue (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $10,438 | $10,187 | $251 | 2% | | Six Months Ended June 30, | $20,351 | $19,242 | $1,109 | 6% | - Cost of revenue increased due to higher allocated personnel-related costs (Q2 and YTD) and third-party hosting costs (YTD), partially offset by decreased merchant processing fees (YTD)[111](index=111&type=chunk)[112](index=112&type=chunk) Research and Development Expenses (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $37,117 | $32,699 | $4,418 | 14% | | Six Months Ended June 30, | $70,099 | $61,659 | $8,440 | 14% | - R&D expenses increased primarily due to higher personnel-related costs from increased headcount (Q2 and YTD) and increased third-party software costs (YTD)[113](index=113&type=chunk)[114](index=114&type=chunk) Sales and Marketing Expenses (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $31,386 | $32,627 | $(1,241) | (4)% | | Six Months Ended June 30, | $60,595 | $63,688 | $(3,093) | (5)% | - Sales and marketing expenses decreased due to a significant reduction in performance marketing costs for user acquisition, partially offset by increased personnel-related costs and marketing for small and mid-sized customers[115](index=115&type=chunk)[116](index=116&type=chunk) General and Administrative Expenses (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $19,390 | $17,283 | $2,107 | 12% | | Six Months Ended June 30, | $35,869 | $32,433 | $3,436 | 11% | - G&A expenses increased due to higher personnel-related costs from increased headcount, partially offset by decreased insurance expenses[117](index=117&type=chunk)[118](index=118&type=chunk) Interest Income (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $6,356 | $2,153 | $4,203 | 195% | | Six Months Ended June 30, | $11,869 | $2,644 | $9,225 | 349% | - Interest income increased significantly due to higher interest rates[119](index=119&type=chunk)[120](index=120&type=chunk) Other Income (Expense), Net (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $(193) | $(708) | $515 | (73)% | | Six Months Ended June 30, | $(309) | $(893) | $584 | (65)% | - Other expense decreased primarily due to the periodic re-measurement of monetary assets and liabilities denominated in non-functional currencies[121](index=121&type=chunk)[122](index=122&type=chunk) Provision for Income Taxes (in thousands) | Period | 2023 | 2022 | Change ($) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Three Months Ended June 30, | $124 | $33 | $91 | 276% | | Six Months Ended June 30, | $425 | $61 | $364 | 597% | - Provision for income taxes increased primarily due to foreign income tax expenses[123](index=123&type=chunk)[124](index=124&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company has historically generated negative cash flows from operations and financed itself through equity sales and the Business Combination - The company has generated **negative cash flows from operations** since inception and has an accumulated deficit of **$687.4 million** as of June 30, 2023[125](index=125&type=chunk)[126](index=126&type=chunk) - As of June 30, 2023, the company had **$551.6 million** in cash, cash equivalents, and marketable securities[127](index=127&type=chunk) - The company expects to incur significant R&D, sales & marketing, and G&A expenses and anticipates continued operating losses for the foreseeable future[126](index=126&type=chunk) - Future capital may be raised through equity or debt securities, which could dilute existing stockholders or impose restrictive covenants[128](index=128&type=chunk) - As of June 30, 2023, **$22.8 million** remained available for future share repurchases under the Share Repurchase Program, which did not see any repurchases during the three and six months ended June 30, 2023[130](index=130&type=chunk) [Cash Flows](index=36&type=section&id=Cash%20Flows) For the six months ended June 30, 2023, net cash used in operating activities was $26.0 million, a decrease from $28.1 million in the prior year, primarily due to non-cash charges and changes in operating assets and liabilities Summary of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(26,049) | $(28,121) | | Net cash provided by (used in) investing activities | $52,625 | $(435,600) | | Net cash provided by (used in) financing activities | $3,639 | $(18,397) | - Operating cash outflow decreased due to non-cash charges (stock-based compensation, depreciation) and net cash inflows from changes in operating assets and liabilities (accrued expenses, operating lease ROU assets, prepaid expenses, accounts receivable, accounts payable), partially offset by lease payments[132](index=132&type=chunk)[133](index=133&type=chunk) - Investing cash flow turned positive, driven by proceeds from maturities (**$306.8 million**) and sales (**$51.6 million**) of marketable securities, partially offset by purchases (**$303.2 million**) and a loan to OFN (**$2.5 million**)[134](index=134&type=chunk)[135](index=135&type=chunk) - Financing cash flow turned positive due to proceeds from stock option exercises (**$2.6 million**) and ESPP (**$1.1 million**), contrasting with prior year's cash use for share repurchases and tax withholdings[136](index=136&type=chunk)[137](index=137&type=chunk) [Non-GAAP Financial Measure](index=37&type=section&id=Non-GAAP%20Financial%20Measure) This section defines Adjusted EBITDA as a non-GAAP financial measure used by management to assess performance and make strategic decisions - **Adjusted EBITDA** is a non-GAAP measure representing net loss adjusted for depreciation and amortization, stock-based compensation, net interest income, provision for income taxes, and acquisition-related costs[138](index=138&type=chunk) - Adjusted EBITDA is used for performance assessment, budget preparation, and strategic decisions, providing a consistent overview of operations[139](index=139&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Item | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net loss | $(35,403) | $(36,843) | $(69,119) | $(69,791) | | Depreciation and amortization | $1,454 | $1,374 | $2,905 | $2,704 | | Stock-based compensation | $21,576 | $17,544 | $37,392 | $29,688 | | Interest income | $(6,356) | $(2,153) | $(11,869) | $(2,644) | | Provision for income taxes | $124 | $33 | $425 | $61 | | **Adjusted EBITDA** | **$(18,605)** | **$(20,045)** | **$(40,266)** | **$(39,982)** | [Critical Accounting Policies and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company prepares its financial statements using GAAP, which requires estimates and assumptions - No material changes to critical accounting policies requiring estimates, assumptions, and judgments compared to the Annual Report on Form 10-K for the year ended December 31, 2022[142](index=142&type=chunk) [Recently Issued Accounting Pronouncements](index=37&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) This section refers to Note 2 of the unaudited condensed consolidated financial statements for information regarding recently issued accounting pronouncements - Refer to Note 2 for information regarding recently issued accounting pronouncements[143](index=143&type=chunk) [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 is exposed to market risks primarily from fluctuations in interest rates and foreign currency exchange rates - Primary market risk exposures are fluctuations in **interest rates** and **foreign currency exchange rates**[144](index=144&type=chunk) - A hypothetical **100 basis point change in interest rates** would not have a material effect on the fair value of the investment portfolio due to its short-term nature[145](index=145&type=chunk) - Operating expenses in foreign currencies (British Pound, Euro, Canadian Dollar, Australian Dollar) expose the company to foreign currency risk, but a **10% change in USD value** is not believed to materially affect financial statements for the periods presented[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, at a reasonable assurance level - Disclosure controls and procedures were **effective** as of June 30, 2023, at the reasonable assurance level[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the period that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[148](index=148&type=chunk) - Control systems provide only reasonable, not absolute, assurance, and can be subject to errors, mistakes, circumvention, or management override[149](index=149&type=chunk) [Part II - Other Information](index=39&type=section&id=Part%20II%20-%20Other%20Information) This part provides additional information including legal proceedings, detailed risk factors, equity sales, and exhibit listings [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings that, if determined adversely, would individually or collectively have a material adverse effect on its business or financial results - The company is not currently a party to any legal proceedings that would have a material adverse effect on its business or financial results[151](index=151&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This extensive section details various risks that could materially and adversely affect the company's business, operating results, financial condition, and prospects - **Risks Related to Business and Industry**: Limited operating history, dependence on advertising revenue, intense competition, reliance on technical infrastructure, challenges in managing growth, brand identity and reputation, international expansion, and ability to attract/retain talented employees[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)[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)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - **Risks Related to Security and Technology**: Dependence on third-party software (GAM, AWS), reliance on third parties for neighbor verification, ad-blocking technologies, security breaches, and errors/bugs in technical systems[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[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) - **Risks Related to Financial and Accounting Matters**: Fluctuating operating results, potential inaccuracy of market opportunities and key metric estimates, history of net losses, limitations on NOLs, changes in accounting principles, currency exchange rate fluctuations, and greater than anticipated tax liabilities[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) - **Risks Related to Legal and Regulatory Matters**: Liability from content on the platform, government restrictions on access, complex and evolving U.S. and foreign laws (e.g., DSA, Online Safety Bill, CCPA, GDPR), legal disputes, and exposure to UK political developments (Brexit)[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) - **Risks Related to Intellectual Property**: Inability to protect intellectual property, confidentiality agreement limitations, third-party infringement claims, and risks associated with open source software and licensed technology[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk) - **Risks Related to Ownership of Class A Common Stock**: Volatile stock price, adverse effects of dual class structure, no intention to pay cash dividends, reliance on analyst research, potential securities litigation, and anti-takeover provisions[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the initial public offering (IPO) and private placement of securities by Khosla Ventures Acquisition Co. II (KVSB) prior to the Business Combination, and the subsequent use of proceeds - KVSB consummated its IPO of **41,634,412 public shares at $10.00 per share**, generating **$416.3 million gross proceeds**[304](index=304&type=chunk) - A private placement of **1,132,688 shares at $10.00 per share** to the Sponsor generated **$11.3 million gross proceeds**, issued under Section 4(a)(2) of the Securities Act[305](index=305&type=chunk) - After deducting IPO costs and payments to KVSB shareholders, **$416.3 million** from the trust account was used to fund operations and growth[306](index=306&type=chunk) - No shares were repurchased under the **$100.0 million Share Repurchase Program** during the three and six months ended June 30, 2023, with **$22.8 million remaining available**[307](index=307&type=chunk) [Item 3. Defaults Upon Senior Securities](index=84&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - Not applicable[308](index=308&type=chunk) [Item 4. Mine Safety Disclosures](index=86&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - Not applicable[309](index=309&type=chunk) [Item 5. Other Information](index=86&type=section&id=Item%205.%20Other%20Information) There is no other information to report under this item - None[310](index=310&type=chunk) [Item 6. Exhibits](index=86&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 the Principal Executive Officer and Principal Financial Officer, as well as Inline XBRL documents - Includes Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) and 18 U.S.C. Section 1350[312](index=312&type=chunk) - Includes Inline XBRL Instance Document, Taxonomy Extension Schema Document, Calculation Linkbase Document, Definition Linkbase Document, Label Linkbase Document, Presentation Linkbase Document, and Cover Page Interactive Date File[312](index=312&type=chunk) [Signatures](index=88&type=section&id=Signatures) This section contains the official signatures for the Quarterly Report on Form 10-Q, confirming its submission by duly authorized officers of Nextdoor Holdings, Inc [Report Signatures](index=88&type=section&id=Report%20Signatures) This section contains the official signatures for the Quarterly Report on Form 10-Q, confirming its submission by duly authorized officers of Nextdoor Holdings, Inc - The Quarterly Report on Form 10-Q is signed by Sarah Friar, Chief Executive Officer, President and Chairperson of the Board of Directors (Principal Executive Officer), and Michael Doyle, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)[317](index=317&type=chunk)[318](index=318&type=chunk)

Nextdoor Holdings, Inc. (NYSE:KIND) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET Company Participants Matt Anderson - Head of Investor Relations Sarah Friar - Chief Executive Officer Michael Doyle - Chief Financial Officer Conference Call Participants Eric Sheridan - Goldman Sachs Robert Zeller - Truist Securities Jocelyn Hung - Evercore ISI Operator Good afternoon, and thank you for attending today's Nextdoor Q1 2023 Earnings Call. My name is Jason, and I'll be the moderator for today's call. [ ...

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 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 Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) 420 Taylor Street San Francisco, California (Address of Prin ...

Nextdoor Holdings, Inc. (NYSE:KIND) Q4 2022 Earnings Conference Call February 28, 2023 5:00 PM ET Company Participants Matt Anderson – Head of Investor Relations Sarah Friar – Chief Executive Officer Mike Doyle – Chief Financial Officer Conference Call Participants Robert Zeller – Truist Eric Sheridan – Goldman Sachs Brian Nowak – Morgan Stanley James Michael – Citi Operator Thank you for attending today’s Nextdoor Fourth Quarter and Full Year 2022 Earnings conference Call. My name is Jason, and I’ll be the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 Jurisdiction ...