Nextdoor (US:KIND)2025-11-05 23:02Financial 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 GAAP net loss was $13 million, while Adjusted EBITDA was $4 million, reflecting a positive 6% margin and an 8-point year-over-year improvement [6] - Revenue per employee increased by 21% year-to-date, with cash, cash equivalents, and marketable securities totaling $403 million and zero debt at quarter end [6] Business Line Data and Key Metrics Changes - Self-serve revenue grew by 33% year-over-year, accounting for approximately 60% of total revenue, driven by strong demand from advertisers [5] - The active customer base and associated net new advertiser spend also saw growth, indicating effective ad stack investments [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 notification and email volumes [5] - The company plans to maintain its current ad load and intentionally reduce new user acquisition efforts in Q4 to enhance 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 strategy emphasizes long-term sustainable growth over short-term metrics, with a commitment to product quality and user experience [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 expects Q4 revenue between $67 million and $68 million, with an Adjusted EBITDA range of $3.5 million to $4.5 million, indicating a focus on maintaining operational efficiency [6][7] - Full-year 2025 revenue growth is projected at 3%-4%, with expectations for Adjusted EBITDA break-even in 2026 [7] Other Important Information - A new Chief Financial Officer, Indrajit Ponnambalam, 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 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 - 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 alerts, with 4,000 publishers currently providing news content [23] Question: Update on programmatic capabilities - The company has completed supply-side platform integration and is testing with demand-side platforms, including a deal with Yahoo for programmatic advertising [25][26] 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 [30][31]