Nextdoor (US:KIND)2023-02-28 21:11Financial Performance - The company reported total revenue of $212,765,000 for the year ended December 31, 2022, representing a 10.3% increase from $192,197,000 in 2021[342]. - The company's net loss for 2022 was $137,916,000, compared to a net loss of $95,325,000 in 2021, indicating a significant increase in losses[342]. - The comprehensive loss for 2022 was $139,583,000, compared to $95,057,000 in 2021, reflecting an increase in overall losses[345]. - For the year ended December 31, 2022, Nextdoor reported a net loss of $137.916 million, compared to a net loss of $95.325 million in 2021, reflecting an increase of 44.7% in losses year-over-year[352]. - The company reported a net loss attributable to common stockholders of $46.3 million in 2022, compared to a loss of $91.6 million in 2021[449]. - The Company recorded a loss before income taxes of $136.2 million in 2022, compared to a loss of $95.2 million in 2021[451]. Cash and Cash Equivalents - As of December 31, 2022, the company had cash and cash equivalents of $55.2 million and marketable securities of $528.1 million[314]. - Cash and cash equivalents significantly decreased from $521,812,000 in 2021 to $55,236,000 in 2022, a drop of about 89.4%[340]. - Total cash, cash equivalents, and restricted cash at the end of 2022 was $55.236 million, a significant decrease from $521.812 million at the end of 2021[352]. - The company's cash equivalents included $20,381 in money market funds and $15,415 in Level 2 securities, totaling $35,796[413]. Expenses and Liabilities - Research and development expenses rose to $127,073,000 in 2022, up from $97,096,000 in 2021, reflecting a 30.9% increase[342]. - The total liabilities decreased slightly from $95,101,000 in 2021 to $88,494,000 in 2022, a reduction of approximately 7.0%[340]. - Stock-based compensation for the year amounted to $47.514 million, indicating a significant investment in employee incentives[349]. - Total stock-based compensation expense increased to $64.4 million in 2022 from $47.5 million in 2021, with research and development expenses accounting for $35.6 million[448]. - The total lease payments under operating leases as of December 31, 2022, were projected to be $70,984, with a present value of lease liabilities at $61,597[422]. Revenue Recognition - The company recognized revenue primarily through advertising impressions displayed on its platform, with a complex revenue recognition process[328]. - The Company recognizes advertising revenue upon displaying an impression to users, with no minimum impression guarantees in its arrangements[382]. - Cost of revenue primarily includes third-party hosting costs and personnel-related expenses, reflecting the operational structure of the Company[387]. Stock and Equity - The company issued common stock upon the reverse recapitalization, resulting in an increase of $622.588 million in additional paid-in capital[348]. - Following the Reverse Recapitalization, a total of 382,957,639 shares of common stock were outstanding, including 304,003,976 shares of Nextdoor Class B common stock[405]. - The company authorized the issuance of 50,000,000 shares of preferred stock, but as of December 31, 2022, no shares were issued or outstanding[429]. - The company has a Share Repurchase Program authorized to repurchase up to $100.0 million in Class A common stock, set to expire on June 30, 2024[437]. Risks and Challenges - The company generates substantially all of its revenue from advertising, making it vulnerable to reductions in advertiser spending[318]. - The company has experienced rapid growth and plans to continue investing in growth, but effective management of this growth is crucial for future success[318]. - The company has a history of net losses and may continue to experience net losses in the future, raising concerns about achieving and sustaining profitability[318]. - The company relies on third-party software and service providers for advertisement management and platform services, which poses risks if these services are disrupted[318]. - The company is expanding its international operations, which may expose it to increased business, regulatory, and economic risks[318]. Tax and Deferred Assets - The Company has fully offset its U.S. net deferred tax assets with a valuation allowance due to historical operating performance and cumulative net losses[392]. - The Company had total deferred tax assets of $163.3 million as of December 31, 2022, with a full valuation allowance established[453]. - Federal net operating loss carryforwards amounted to $382.1 million as of December 31, 2022, beginning to expire in 2033[454]. - The effective tax rate for 2022 was 1.2%, influenced by changes in valuation allowance and other factors[452]. Investments and Securities - The Company maintains investments in high credit-rated securities, minimizing credit risk associated with its cash and cash equivalents[380]. - The amortized cost of marketable securities as of December 31, 2022, was $530.5 million, with unrealized losses totaling $2.5 million[410]. - The Company converted all 61,331,815 shares of Legacy Nextdoor redeemable convertible preferred stock into common stock at the conversion rate specified in the Merger Agreement[401]. Miscellaneous - The company entered into a credit agreement with Opportunity Finance Network for up to $15 million, unsecured, over 24 months starting June 29, 2022[426]. - The company matched $1.4 million in 401(k) contributions for eligible participants in 2022, up from $1.1 million in 2021[450].