NYSE$NXDR
Nextdoor Holdings Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Revenue increased due to SMB growth, WAU grew, and ARPU declined.
Nextdoor's Q3 2023 saw revenue increase by 4% year-over-year to $56 million, driven by growth from small and medium-sized businesses. Weekly Active Users (WAU) grew 6% year-over-year to 40.4 million, but declined 3% quarter-over-quarter due to deliberate limitations on notification volumes. ARPU declined 2% year-over-year to $1.39.
- Q3 revenue increased 4% year-over-year to $56M, driven by SMB growth.
- Weekly Active Users (WAU) grew 6% year-over-year to 40.4 million.
- ARPU declined 2% year-over-year to $1.39.
- Organic Verified Neighbors additions were the highest in Nextdoor's history.
Headline financials
Revenue & EPS history
Nextdoor · Revenue · Quarterly
$56.1M
Forward guidance
Nextdoor anticipates Q4 2023 revenue to be in the range of $50 million to $52 million and adjusted EBITDA to be in the range of ($21) million to ($19) million, excluding one-time expenses. For the full year 2023, revenue is expected to be between $213 million and $215 million, with adjusted EBITDA between ($81) million and ($79) million, also excluding one-time expenses.
Tailwinds
- Adding more Verified Neighbors in 2024 than in 2023, with the majority coming organically.
- Delivering improved formats, targeting and tools for advertisers, and improved yield on our ad inventory.
- Introducing the ability for Nextdoor Ads Manager advertisers to create and run video ads and lead generation ad campaigns served by Nextdoor Ad Server in Q4.
- Migrating an increasing amount of ads delivery for Nextdoor Ads Manager campaigns to Nextdoor Ad Server in Q4, with a goal of serving substantially all demand by the end of the year.
- Offering delivery optimization capabilities to all Nextdoor Ads Manager advertisers by mid-2024.
Headwinds
- Weaker-than-expected growth from US direct-sold advertisers.
- Home services spending on the platform slowed.
- Financial services remained challenged.
- Weaker enterprise demand trends will likely persist for at least the coming quarters, constraining near-term revenue growth.
- Revenue growth to be approximately flat for the full year 2023.
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 Q3 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
| Quarter | Report date | Reaction (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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