Nextdoor (KIND) - 2025 Q1 - Quarterly Results

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