Core Viewpoint - Eric Jackson has identified Nextdoor Holdings, Inc. (NYSE:NXDR) as a high-conviction investment opportunity, labeling it as the most mispriced Agentic-AI platform of the 2020s, which has led to a significant increase in its stock price [1][2]. Group 1: Investment Thesis - Jackson's argument is based on Nextdoor's verified "identity graph," which connects real verified individuals to specific physical addresses, positioning it uniquely in the market compared to platforms like Reddit or X [2]. - He believes that the combination of identity, trust, and proximity will be crucial in the era of agentic AI, making neighborhoods a vital component of this new landscape [2]. Group 2: Market Performance - Following Jackson's endorsement, Nextdoor's stock price rose by 24.51%, reaching $3.15, with estimates suggesting it could potentially be valued at over $370 if Jackson's thesis is validated [3][5]. - The company reported revenues of nearly $69 million in the most recent quarter, although it has never reported a profitable quarter [5]. Group 3: Analyst Coverage and Market Sentiment - Currently, only one analyst covers Nextdoor, with Citigroup maintaining a Neutral rating and lowering its price target from $2.30 to $2.20, indicating a cautious outlook [4]. - Critics highlight the company's historical challenges in monetizing its user base and the competitive landscape in the advertising sector [4].

Financial Data and Key Metrics Changes - Revenue for the quarter increased by 26% to a record $22 million, with adjusted gross profit reaching $18.3 million and an adjusted gross margin of 83% [7][14] - Adjusted EBITDA rose by 47% to a record $8.4 million, resulting in an adjusted EBITDA margin of 38%, up six percentage points [7][15] - Adjusted net income increased by 53% to a record $4.8 million, leading to adjusted earnings of $0.33 per diluted share [7][21] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by over 300 customers sequentially, ending the quarter at 9,241 customers [7][17] - The emerging markets vertical led revenue growth, while the investigative vertical continued to perform well, driven by law enforcement [17][18] - The collections vertical showed mid-single-digit growth, with the highest year-over-year growth rate since 2020 when normalized for prior year impacts [18] - The real estate vertical, excluding FORWARN, declined by low single digits due to affordability issues [19] Market Data and Key Metrics Changes - Over 545 realtor associations are now contracted to use FORWARN, which added more than 20,000 users during the quarter, marking its twentieth consecutive quarter of revenue growth [8][19] - Contractual revenue represented 74% of total revenue for the quarter, down four percentage points from the prior year [19] Company Strategy and Development Direction - The company focuses on increasing productivity, implementing automation, and enhancing proprietary data generation and aggregation, including the use of AI [11][31] - The business model has proven resilient through various economic cycles, ensuring relevance and mission-critical status regardless of market conditions [9][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's durability amid economic volatility, highlighting strong demand across various customer segments [8][10] - The company is optimistic about the opportunity pipeline and expects continued onboarding across customer verticals [25][26] Other Important Information - Cash and cash equivalents were $34.6 million as of March 31, 2025, with a special cash dividend of $0.30 per share paid out [21][22] - The company generated $5 million in cash from operating activities, compared to $4.3 million for the same period in 2024 [21] Q&A Session Summary Question: What is driving the strong growth in IDI customers? - Management noted consistent volume across customer bases and verticals, with no impact from broader economic uncertainty [25][26] Question: Any highlights on larger customers and their trends? - The number of customers generating over $100,000 in revenue annually has grown to approximately 110, indicating strong performance in medium and larger enterprise segments [27][28] Question: What areas of technology investment are being focused on for long-term growth? - The company is investing in enhancing its identity graph and proprietary data generation, with a focus on AI initiatives to provide current risk signals to customers [29][31]