Nextdoor Holdings Inc · Q2 2023 earnings

Briefing

Returned to revenue growth and adjusted EBITDA margin expansion.

Nextdoor's Q2 2023 shows a return to revenue growth, increasing 4% year-over-year to $57 million. The company is focused on growing its base of neighbors and organizations, increasing engagement, and building its ad platform to support customers of all sizes.

• Q2 revenue of $57M increased 4% year-over-year, driven by strength from mid-market customers, small businesses, and agency partnerships.
• Q2 Weekly Active Users (WAU) of 41.6 million grew 13% year-over-year.
• Q2 ARPU of $1.37 declined 7% year-over-year.
• Adjusted EBITDA of ($19M) represented a 4-point margin improvement year-over-year and and 11-point improvement quarter-over-quarter.

Headline financials

Revenue & EPS history

Nextdoor anticipates Q3 2023 revenue growth to align with Q2 2023, around 4% year-over-year, with an adjusted EBITDA loss between $21M–$20M. For the full year 2023, they project an acceleration in Q4 year-over-year revenue growth, implying mid-single-digit year-over-year growth, and expect to deliver adjusted EBITDA margin improvement while maintaining low single-digit sequential operating expense growth in the second half of the year.