Nextdoor (US:KIND)2025-11-05 23:00Financial Data and Key Metrics Changes - Q3 revenue reached $69 million, a 5% year-over-year increase, marking the highest quarterly revenue ever for the company [4] - Q3 adjusted EBITDA was $4 million, representing a positive 6% margin and an 8-point year-over-year improvement [6] - Q3 GAAP net loss was $13 million, with expectations for a full-year adjusted EBITDA loss of approximately $3 million [6][7] - The company had $403 million in cash, cash equivalents, and marketable securities, with zero debt at quarter end [6] Business Line Data and Key Metrics Changes - Self-serve revenue grew 33% year-over-year, accounting for roughly 60% of total revenue [5] - The active customer base and associated net new advertiser spend increased, indicating strong demand for the self-serve ads 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 reduced notification and email volumes [5] - The company plans to maintain its current ad load and reduce new user acquisition efforts in Q4 to focus on user experience [7] Company Strategy and Development Direction - The company is focused on building a stronger neighborhood ecosystem by increasing high-quality content and enhancing user engagement [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 for full-year adjusted EBITDA break-even in 2026, emphasizing long-term value creation over short-term metrics [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation of the platform, highlighting the importance of user-generated content and local information [8][9] - The company acknowledged past challenges with content relevance and is committed to improving user experience and engagement [30] Other Important Information - A new Chief Financial Officer, Indrajit Panambalan, will join the company effective December 1, 2025, bringing extensive experience in finance and operations [11] Q&A Session Summary Question: Insights on customer engagement and depth of engagement metrics - Management noted that increasing high-quality content leads to deeper engagement, with news content now approaching 10% of the feed [15][16] Question: User acquisition strategies evolving into 2026 - The company plans to enhance the first-time user experience and will not aggressively pursue new user acquisition in the short term [18][19] Question: Sources of additional content - Management indicated a focus on increasing user-generated content while also integrating more third-party publisher content [22][23] Question: Update on programmatic capabilities - The company completed supply-side platform integration and is currently testing with demand-side platforms, including a deal with Yahoo [24][25] Question: Engagement from alerts and notifications - Management confirmed that reducing notifications has led to more effective alerts, which are helping to re-engage lapsed users [29][30]