- Adds Record Number of Organic Verified Neighbors in Q3, with
continued momentum expected in Q4
- Implements Cost Reduction Plan to Accelerate Path to Quarterly
Free Cash Flow Breakeven by Year-End 2025
Nextdoor Holdings, Inc. (NYSE: KIND) today announced financial
results for the third quarter ended September 30, 2023.
Nextdoor's highlighted metrics for the quarter ended September
30, 2023 include:
- Total Weekly Active Users (WAU) of 40.4 million increased 6%
year-over-year.
- Revenue of $56 million increased 4% year-over-year.
- Net loss was $38 million, compared to $35 million in the
year-ago period.
- Adjusted EBITDA loss was $20 million, compared to $18 million
in the year-ago period.
- Ending cash, cash equivalents, and marketable securities were
$540 million as of September 30, 2023.
"Nextdoor made strides in Q3 against a difficult advertising
backdrop, and delivered year-over-year growth in the metrics that
matter most for our long-term success. Weekly Active Users
increased 6% year-over-year to 40.4 million, and we ended the
quarter with approximately 85 million Verified Neighbors, with the
largest addition of organic verified neighbors in any quarter in
our history,” said Nextdoor CEO Sarah Friar. "Revenue of $56
million increased 4% year-over-year, including accelerating growth
from small and medium business customers moving to the Nextdoor Ad
Server. For the rest of 2023 and beyond, we remain focused on
attracting new Neighbors to the platform, providing the relevant
local content to drive engagement, and ensuring value for our
advertisers– while building a sustainable business that delivers
long-term value for our shareholders."
Today, Nextdoor announced a cost reduction plan, targeting a
reduction of the Company’s current GAAP personnel expenses of up to
$60M annually, including a 25% reduction in its employee base.
“This reduction in our team is the hardest decision we have had to
make at Nextdoor,” said Sarah Friar. “While our opportunity and
belief in the transformative power of community remains unwavering,
and our business is financially strong with a healthy balance
sheet, we must follow through on our commitment to our
shareholders. This means right sizing our business and aligning our
team and other expenses with our near term revenue expectations. We
expect that these actions will position us to reach quarterly free
cash flow breakeven by the end of 2025.”
Nextdoor also announced today that Mike Doyle is resigning from
his position as Chief Financial Officer, effective November 7,
2023, following the filing of the Company’s Quarterly Report on
Form 10-Q. Doyle will remain at Nextdoor through December 1, 2023,
to help ensure a smooth transition. Matt Anderson, Nextdoor’s Head
of Finance and Strategy, has been appointed as Chief Financial
Officer effective on November 7th. Anderson has been with Nextdoor
for the past four years with growing responsibilities within its
finance organization, including leading the Investor Relations
function. Prior to joining Nextdoor, Anderson spent six years at
Block, Inc. in leadership roles, and prior to joining Block, Inc.,
Anderson worked in private equity and investment banking.
“I want to thank Mike for his significant contributions to
Nextdoor over the last five plus years. Over that time, Mike has
led multiple rounds of funding including our public offering and
listing on the NYSE and built a leading finance function. Mike will
always be a friend and a Nextdoor neighbor, and we wish him all the
best in his future endeavors,” said Sarah Friar. “We are in the
enviable position of having a deep and talented bench, and I'm
thrilled to introduce Matt Anderson as Nextdoor’s next CFO. I have
had the privilege of working closely with Matt for more than a
decade, including at Block Inc., and I know that he has the
experience to be a great CFO,” concluded Friar.
For more detailed information on our operating and financial
results for the third quarter ended September 30, 2023, as well as
our outlook for Q4 and fiscal year 2023, please reference our
Shareholder Letter posted to our Investor Relations website located
at investors.nextdoor.com.
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands)
2023
2022
2023
2022
Revenue
$
56,092
$
53,954
$
162,752
$
159,495
Loss from operations
$
(44,376
)
$
(36,392
)
$
(124,630
)
$
(107,873
)
Net loss
$
(38,116
)
$
(34,717
)
$
(107,235
)
$
(104,508
)
Adjusted EBITDA(1)
$
(19,799
)
$
(18,366
)
$
(60,065
)
$
(58,349
)
(1) The following is a reconciliation of net loss, the most
comparable GAAP measure, to adjusted EBITDA for the periods
presented above:
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands)
2023
2022
2023
2022
Net loss
$
(38,116
)
$
(34,717
)
$
(107,235
)
$
(104,508
)
Depreciation and amortization
1,451
1,465
4,356
4,169
Stock-based compensation
23,343
17,270
60,735
46,957
Interest income
(6,766
)
(2,703
)
(18,635
)
(5,347
)
Provision for income taxes
289
319
714
380
Adjusted EBITDA
$
(19,799
)
$
(18,366
)
$
(60,065
)
$
(58,349
)
Nextdoor will host a conference call at 2:00 p.m. PT/5:00 p.m.
ET today to discuss these results and outlook. A live webcast of
our third quarter 2023 earnings release call will be available in
the Events & Presentations section of Nextdoor’s Investor
Relations website. After the live event, the audio recording for
the webcast can be accessed on the same website for approximately
one year.
Nextdoor uses its Investor Relations website
(investors.nextdoor.com), its Twitter handle
(twitter.com/Nextdoor), its LinkedIn Home Page
(linkedin.com/company/nextdoor-com), and Sarah Friar’s LinkedIn
posts (linkedin.com/in/sarah-friar-922b044) as a means of
disseminating or providing notification of, among other things,
news or announcements regarding its business or financial
performance, investor events, press releases, and earnings
releases, and as a means of disclosing material nonpublic
information and for complying with its disclosure obligations under
Regulation FD.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared in accordance with GAAP, we present certain
non-GAAP financial measures, such as adjusted EBITDA, in this press
release. Our use of non-GAAP financial measures has limitations as
an analytical tool, and these measures should not be considered in
isolation or as a substitute for analysis of financial results as
reported under GAAP.
We use non-GAAP financial measures in conjunction with financial
measures prepared in accordance with GAAP for planning purposes,
including in the preparation of our annual operating budget, as a
measure of our core operating results and the effectiveness of our
business strategy, and in evaluating our financial performance.
Non-GAAP financial measures provide consistency and comparability
with past financial performance, facilitate period-to-period
comparisons of core operating results, and also facilitate
comparisons with other peer companies, many of which use similar
non-GAAP financial measures to supplement their GAAP results. In
addition, adjusted EBITDA is widely used by investors and
securities analysts to measure a company's operating performance.
We exclude the following items from one or more of our non-GAAP
financial measures: stock-based compensation expense (non-cash
expense calculated by companies using a variety of valuation
methodologies and subjective assumptions), depreciation and
amortization (non-cash expense), interest income, provision for
income taxes, and, if applicable, acquisition-related costs.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. In particular, (1) stock-based compensation
expense has recently been, and will continue to be for the
foreseeable future, a significant recurring expense for our
business and an important part of our compensation strategy, (2)
although depreciation and amortization expense are non-cash
charges, the assets subject to depreciation and amortization may
have to be replaced in the future, and our non-GAAP measures do not
reflect cash capital expenditure requirements for such replacements
or for new capital expenditure requirements, and (3) adjusted
EBITDA does not reflect: (a) changes in, or cash requirements for,
our working capital needs; (b) interest expense, or the cash
requirements necessary to service interest or principal payments on
our debt, which reduces cash available to us; or (c) tax payments
that may represent a reduction in cash available to us. The
non-GAAP measures we use may be different from non-GAAP financial
measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by
providing specific information regarding the GAAP items excluded
from these non-GAAP financial measures.
About Nextdoor
Nextdoor (NYSE: KIND) is the neighborhood network. Neighbors,
businesses of all sizes, and public agencies in more than 315,000
neighborhoods across 11 countries turn to Nextdoor to connect to
the neighborhoods that matter to them so that they can thrive. As a
purpose-driven company, Nextdoor leverages innovative technology to
cultivate a kinder world where everyone has a neighborhood they can
rely on — both online and in the real world. Download the app or
join the neighborhood at nextdoor.com. For more information and
assets, visit nextdoor.com/newsroom.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107264060/en/
Nextdoor Investor Relations: Matt Anderson John T. Williams
ir@nextdoor.com or visit investors.nextdoor.com
Nextdoor Media Relations: David Roady Antonia Gray
press@nextdoor.com
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