Nextdoor (US:KIND)2022-08-10 02:34Financial Data and Key Metrics Changes - Q2 revenue was $55 million, representing a 19% year-over-year increase [22] - Weekly Active Users (WAU) grew 26% year-over-year to approximately 37 million [22] - Global Average Revenue Per User (ARPU) declined 6% year-over-year to $1.48, but increased 6% quarter-over-quarter [27] - Adjusted EBITDA for Q2 was a loss of $20 million, reflecting a negative margin of 37% [27] - Cash and marketable securities at the end of the quarter totaled $666 million [28] Business Line Data and Key Metrics Changes - Advertiser demand remained strong in sectors like home services, despite some budget reductions due to macroeconomic conditions [8][22] - Performance-focused campaigns comprised over 60% of managed spend in Q2 [24] - Mid-market advertisers showed outsized growth on the platform [25] - Continued resilience in core verticals such as home services and recovery in travel, but softness noted in financial services and retail [26] Market Data and Key Metrics Changes - WAU growth outside the US exceeded 50% year-over-year for the second consecutive quarter [22] - Significant progress in international markets, with notable growth in the UK [11] Company Strategy and Development Direction - The company is shifting focus towards new neighbor growth while maintaining engagement with existing users [10][17] - Plans to enhance the ad platform for small and mid-sized businesses, providing broader access to ad formats and improved performance tracking [15][42] - Emphasis on community and utility as differentiators from other social media platforms [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic uncertainty and the potential for a recession [6] - The company remains committed to its long-term growth opportunities despite anticipated tightening in advertiser budgets [31] - Adjusted full-year 2022 revenue guidance is set between $220 million and $225 million, reflecting a year-over-year growth rate of 16% at the midpoint [29] Other Important Information - The company has authorized a share repurchase program and repurchased $10.5 million of Class A common stock in Q2 [28] - Management highlighted the importance of brand awareness and partnerships to drive user growth [59] Q&A Session Summary Question: Visibility into advertising spend for the upcoming quarters - Management indicated that visibility is based on current customer budgets and macroeconomic conditions, emphasizing the need for prudence in guidance [36] Question: Variability in revenue from moving SMB advertisers to the new ad serving platform - Management noted that the transition may introduce some revenue variability as features are added to the platform [44] Question: Strategy for growing WAUs moving forward - Management stated that while WAU growth was strong, there is a need to focus on top-of-funnel strategies, including partnerships and brand awareness initiatives [55][58]