NYSE$NXDR

Nextdoor Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Revenue and user growth improved, margins also improved.

Nextdoor's Q2 2024 showed improvements in revenue and weekly active users. The company is focused on revitalizing its platform and improving business execution. Revenue grew by 11% year-over-year, and weekly active users increased by 8%. Adjusted EBITDA also improved significantly.

  • Q2 revenue grew +11% year-over-year to $63 million, driven by improved self-serve revenue retention and strong agency spend momentum.
  • Q2 Weekly Active Users (WAU) reached 45.1 million, growing +8% year-over-year.
  • Adjusted EBITDA improved by 23 percentage points year-over-year.
  • The company repurchased 18 million shares for $44 million during the quarter.

Headline financials

Total Revenue

$63.3M

Previous: $56.9M+11.3%
EPS

-$0.11

Previous: -$0.09-22.2%
Platform WAU

21.6M

No prior period
Adjusted EBITDA

-$5.98M

No prior period
Adjusted EBITDA Margin

-9.0%

No prior period
Net Loss Margin

-68.0%

No prior period
Capital Expenditures

-$121K

Previous: -$139K+12.9%
Free Cash Flow

-$42.9M

Previous: -$35.5M-20.7%
Net Income

-$42.8M

Previous: -$35.4M-20.8%
Operating Income

-$49M

Previous: -$41.4M-18.3%
Gross Profit

$53M

Previous: $46.5M+14.1%
Cash & Equivalents

$53M

Previous: $74.3M-28.7%
Total Assets

$542M

Previous: $684M-20.8%
R&D Expense

$31.1M

No prior period
Stock-Based Comp

$16.2M

Previous: $21.6M-24.8%

Revenue & EPS history

Nextdoor · Revenue · Quarterly

$63.3M

Q2 2024+11.3%vs Q2 2023
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

Nextdoor provided financial outlook for FY 2024 and Q3 2024.

Tailwinds

  • FY 2024 revenue growth is expected to be approximately 10% year-over-year.
  • FY 2024 adjusted EBITDA margin improvement is expected to approach 20 percentage points year-over-year.
  • The company expects to generate positive quarterly free cash flow in Q4 2024.
  • AI has the potential to increase user engagement, improve advertiser performance, and unlock operational efficiencies.
  • The NEXT initiative is underway and is expected to help unlock the product’s full potential.

Headwinds

  • Q3 2024 revenue is expected to be approximately $62 million.
  • Q3 2024 adjusted EBITDA loss is expected to be approximately $(8) million.
  • Transformation of the platform is a complex and time-consuming process.
  • Meaningful signs of product-related progress are not expected until mid-2025.
  • The company faces challenges in reinventing its product while maintaining a disciplined approach.

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 Q2 2024

Historical avgQ2 2024

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro