NYSE$NXDR

Nextdoor Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Nextdoor's Q1 2023 performance reflected a mixed financial landscape with growth in weekly active users offset by a slight revenue decline.

Nextdoor's Q1 2023 showed a 2% year-over-year revenue decrease to $50 million. Weekly Active Users (WAU) grew by 16% year-over-year to 42.4 million. The company is focused on driving WAU and revenue growth through AI and platform improvements.

  • Q1 revenue decreased by 2% year-over-year to $50 million, but showed positive momentum throughout the quarter.
  • Weekly Active Users (WAU) reached 42.4 million, a 16% year-over-year increase and a 6% quarter-over-quarter increase, driven by AI innovations.
  • Adjusted EBITDA loss was $22 million, exceeding expectations due to revenue outperformance and expense management.
  • The company is focused on increasing new neighbor growth and improving advertiser efficacy to drive revenue growth and margin expansion.

Headline financials

Total Revenue

$49.8M

Previous: $51M-2.4%
EPS (adj)

-$0.09

Previous: -$0.09+0.0%
Capital Expenditures

-$59K

Previous: -$637K+90.7%
Free Cash Flow

-$33.8M

Previous: -$33.6M-0.6%
Net Income

-$33.7M

Previous: -$32.9M-2.3%
Operating Income

-$38.8M

Previous: -$33.2M-16.8%
Gross Profit

$39.9M

Previous: $41.9M-5.0%
Cash & Equivalents

$67.8M

Previous: $208M-67.4%
Total Assets

$695M

Previous: $822M-15.5%
Stock-Based Comp

$15.8M

Previous: $12.1M+30.2%

Revenue & EPS history

Nextdoor · Revenue · Quarterly

$49.8M

Q1 2023-2.4%vs Q1 2022
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

Nextdoor anticipates revenue between $53M and $54M and an adjusted EBITDA loss between $24M and $23M for Q2 2023.

Tailwinds

  • Focus remains on growing the base of neighbors and organizations.
  • Increasing engagement on the platform.
  • Returning to strong revenue growth.
  • Supporting the path to profitability.
  • For the full year 2023, the company expects to return to revenue growth and adjusted EBITDA margin improvement.

Headwinds

  • Stock-based compensation expense is impacted by the future fair market value of common stock and other factors.
  • These factors are difficult to predict.
  • These factors are subject to frequent change.
  • These factors are not within the company's control.
  • The actual amount of these expenses during 2023 will have a significant impact on 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 2023

Historical avgQ1 2023

-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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