Nextdoor (KIND) - 2025 Q2 - Quarterly Results

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