Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $69 million, representing a 5% year-over-year growth, marking the highest quarterly revenue ever for the company [4] - Q3 adjusted EBITDA was $4 million, reflecting a positive 6% margin and an 8-point year-over-year improvement [6] - GAAP net loss for Q3 was $13 million, with revenue per employee increasing by 21% year-to-date [6] Business Line Data and Key Metrics Changes - Self-serve revenue grew by 33% year-over-year, accounting for approximately 60% of total revenue [5] - The active customer base and associated net new advertiser spend also increased, indicating strong demand for the self-serve advertising platform [5] Market Data and Key Metrics Changes - Platform WOW (users engaging directly on the app or website) was 21.6 million, showing a modest sequential decline due to a strategic reduction in notifications and email volumes [5] - The company expects Q4 revenue to be between $67 million and $68 million, with adjusted EBITDA projected between $3.5 million and $4.5 million [6][7] Company Strategy and Development Direction - The company is focused on building a stronger neighborhood ecosystem by enhancing user-generated content and local information [9][10] - Plans to reinvent the recommendations ecosystem to turn authentic word-of-mouth into actionable insights for users and local businesses [10] - The company aims to avoid increasing ad load and will intentionally reduce new user acquisition efforts in Q4 to prioritize user experience [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation of the platform, emphasizing the importance of increasing high-quality content to drive engagement [17] - The company remains committed to achieving full-year adjusted EBITDA break-even in 2026, despite a projected adjusted EBITDA loss of approximately $3 million for 2025 [6][7] - Management highlighted the importance of making necessary trade-offs for long-term sustainable growth [33] Other Important Information - The company announced the hiring of Indrajit Panambalan as the new Chief Financial Officer, effective December 1, 2025 [11] - The company has completed its programmatic supply integrations, enabling deeper collaboration with advertisers [4][25] Q&A Session Summary Question: Insights on customer engagement and depth of engagement metric - Management noted that the new Nextdoor platform has seen news content approaching 10% of the feed, with a focus on increasing high-quality content to drive deeper engagement [16][17] Question: User acquisition strategies evolving into 2026 - Management indicated a focus on improving the first-time user experience and a less aggressive approach to new user acquisition in the short term [18][19] Question: Source of additional content - Management confirmed that they are looking to increase user-generated content while also integrating more third-party publisher content [23] Question: Update on programmatic capabilities - Management stated that they have completed the supply-side platform integration and are currently testing with demand-side platforms, including a deal with Yahoo [25][26] Question: Engagement from alerts and notifications - Management reported that reducing notifications has led to more effective alerts, which are helping to re-engage users who may not have visited the platform recently [30][31]

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