NYSE$NXDR

Nextdoor Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Q4 finished with renewed strength, driven by WAU growth, stronger impression growth, higher average spend by small and mid-sized advertisers, a return to growth in home services, and lower marketing and personnel costs.

Nextdoor's Q4 2023 saw revenue increase by 4% year-over-year to $56 million. Weekly Active Users (WAU) grew 5% year-over-year to 41.8 million. The company's cost reduction plan contributed to adjusted EBITDA margin improvement. The company ended the year with $531M in cash and cash equivalents and marketable securities.

  • Q4 revenue increased 4% year-over-year to $56M.
  • Q4 Weekly Active Users (WAU) grew 5% year-over-year and 3% quarter-over-quarter to 41.8 million.
  • Q4 ARPU of $1.33 was stable year-over-year.
  • Self-serve revenue now exceeds 40% of total revenue.

Headline financials

Total Revenue

$55.6M

Previous: $53.3M+4.3%
EPS (adj)

-$0.10

Previous: -$0.09-11.1%
Adjusted EBITDA

-$14M

No prior period
Capital Expenditures

$1K

Previous: $979K-99.9%
Net Income

-$41M

Previous: -$33.4M-22.7%
Operating Income

-$47.7M

Previous: -$36.3M-31.2%
Gross Profit

$45M

Previous: $43.4M+3.7%
R&D Expense

$40.3M

No prior period
Stock-Based Comp

$22.3M

Previous: $17.5M+27.6%

Revenue & EPS history

Nextdoor · Revenue · Quarterly

$55.6M

Q4 2023+4.3%vs Q4 2022
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

Nextdoor provided financial guidance for Q1 2024 and FY 2024, expecting revenue growth and adjusted EBITDA margin improvement. The company expects Q1 2024 revenue in a range between $50 million–$51 million and Q1 2024 adjusted EBITDA loss will be approximately ($20) million.

Tailwinds

  • We expect Q1 WAU to increase quarter-over quarter, driven by continued strong organic Verified Neighbor growth.
  • We expect further increases in session depth will yield strong growth in ad impression opportunities, positively impacting our full-year revenue growth rate.
  • Our expected 2024 year-over-year Adjusted EBITDA margin improvement will be driven largely by savings related to the cost reduction plan implemented in Q4 2023.
  • Our board has authorized a $150M increase to our share repurchase program, and we intend to repurchase shares at what we believe is currently an attractive valuation level.
  • we expect to limit dilution in 2024 and beyond.

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 Q4 2023

Historical avgQ4 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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