NYSE$NXDR

Nextdoor Holdings Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Revenue increased due to neighbor engagement and US Newsfeed eCPMs, WAU grew reflecting acceleration, and ARPU grew due to session frequency and ad pricing.

Nextdoor's Q1 2022 showed strong growth with revenue increasing by 48% year-over-year to $51 million and weekly active users growing by 33% year-over-year to 36.7 million. ARPU also increased by 12% year-over-year to $1.39.

  • Q1 revenue grew 48% year-over-year to $51M, driven by increased neighbor engagement and strong U.S. Newsfeed eCPMs.
  • Q1 Weekly Active Users (WAU) grew 33% year-over-year to 36.7 million, reflecting a third consecutive quarter of acceleration, with continued momentum internationally.
  • Q1 ARPU grew 12% year-over-year to $1.39, driven by increases in session frequency per WAU and ad pricing.
  • Neighbors are increasingly engaged in their local communities, actively participating as a result of connections and recommendations made online.

Headline financials

Total Revenue

$51M

Previous: -$100K+51100.0%
EPS (adj)

-$0.09

Previous: -$0.26+65.4%
Capital Expenditures

-$637K

Previous: $1.89M-133.6%
Free Cash Flow

-$33.6M

Previous: -$91.1K-36761.6%
Net Income

-$32.9M

Previous: -$91.1K-36062.5%
Operating Income

-$33.2M

Previous: -$116K-28515.7%
Gross Profit

$41.9M

Previous: -$100K+42045.0%
Cash & Equivalents

$208M

Previous: $1.69M+12239.2%
Total Assets

$822M

Previous: $419M+96.1%
Stock-Based Comp

$12.1M

Previous: $7.21M+68.4%

Revenue & EPS history

Nextdoor · Revenue · Quarterly

$51M

Q1 2022-51,100%vs Q1 2021
Beat estimate in 8 of 9 quarters(89%)
ActualEstimate

Forward guidance

Nextdoor provided guidance for Q2 2022 and FY 2022.

Tailwinds

  • Q2 2022 Revenue is expected to be between $54M–$56M.
  • FY 2022 Revenue is expected to be between $252M–$256M.
  • Focus remains on growing base of neighbors and organizations.
  • Increasing engagement on the platform.
  • Delivering strong revenue performance to support reinvestment into the business for long-term growth.

Headwinds

  • Q2 2022 Adjusted EBITDA loss is expected to be between $21M–$19M.
  • FY 2022 Adjusted EBITDA margin is expected to be (18%).
  • Broadened the range in light of the current macro environment.
  • Stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control.
  • The actual amount of these expenses during 2022 will have a significant impact on our future GAAP financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-3.6%

Avg return

Earnings day

-2.2%

Avg return

5 days after

-2.1%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+17.6%

Q1 2023

Best reaction

-30.2%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%+15.7%+24.1%
Q4 2025+4.9%+1.8%-13.3%
Q3 2025-1.8%+0.0%+13.4%
Q1 2025-7.4%-7.9%+7.3%
Q4 2024-28.9%-28.9%-37.3%
Q3 2024+13.6%+2.4%+7.2%
Q2 2024+6.3%-6.2%-11.7%
Q1 2024+11.8%+2.3%+7.3%
Q4 2023+2.5%+21.5%+23.3%
Q3 2023-13.7%-18.9%-6.9%
Q2 2023-17.2%-19.5%-32.3%
Q1 2023+17.6%+11.2%+42.4%
Q4 2022-8.5%-5.7%-2.8%
Q3 2022-13.1%+11.4%-14.8%
Q2 2022-30.2%-21.2%-19.1%
Q1 2022-12.0%-1.5%+1.8%
Q4 2020+13.1%+17.2%+5.9%
Q4 2021-2.9%-14.0%-4.5%
Q3 2021-9.9%-1.0%-29.3%
Q2 2021+1.6%
Q1 2021+0.4%
Q3 2020
Q2 2020
Q1 2020

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