NYSE$NXDR

Nextdoor Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Nextdoor reported a strong Q4 2024 with increased revenue, positive adjusted EBITDA, and meaningful operating cash flow, driven by user growth and product improvements.

Nextdoor concluded 2024 with a strong Q4, seeing revenue increase by 17% year-over-year to $65 million. The company achieved positive adjusted EBITDA of $3 million and generated $11 million in operating cash flow. Weekly Active Users (WAU) grew 10% year-over-year to 45.9 million, and the company maintained a disciplined balance between strategic investments and cost controls.

  • Revenue increased 17% year-over-year to $65 million in Q4 2024, driven by performance-optimized campaigns for self-serve advertisers.
  • Adjusted EBITDA turned positive at $3 million (5% margin) in Q4 2024, representing a 30 percentage point improvement year-over-year.
  • Weekly Active Users (WAU) grew 10% year-over-year to 45.9 million, supported by organic U.S. user acquisition and improved notification delivery.
  • The company generated $11 million in operating cash flow in Q4 2024, reinforcing its disciplined approach to resource allocation.

Headline financials

Total Revenue

$65.2M

Previous: $55.6M+17.4%
EPS (adj)

-$0.03

Previous: -$0.10+70.0%
Adjusted EBITDA

$3.04M

Previous: -$14M+121.7%
Capital Expenditures

-$89K

Previous: $1K-9000.0%
Net Income

-$12.1M

Previous: -$41M+70.4%
Operating Income

-$17.1M

Previous: -$47.7M+64.1%
Gross Profit

$54.8M

Previous: $45M+21.7%
R&D Expense

$33.6M

Previous: $40.3M-16.5%

Revenue & EPS history

Nextdoor · Revenue · Quarterly

$65.2M

Q4 2024+17.4%vs Q4 2023
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

Nextdoor expects Q1 2025 revenue to be approximately $53 million, with year-over-year revenue growth in the first half of 2025 expected to be approximately flat. The company anticipates an adjusted EBITDA loss of approximately ($13 million) in Q1 2025, while remaining on track to deliver NEXT by mid-year 2025.

Tailwinds

  • The company remains on track to deliver NEXT by mid-year 2025.
  • Organic user acquisition and ads platform-driven growth drivers from 2024 are expected to persist into 2025.
  • The company is making bold decisions and prioritizing long-term growth with a Founder's Mentality.
  • The NEXT initiative aims to create a healthier baseline for growth and an improved user experience.
  • The company is focused on unlocking the promise of the neighborhood through richer local content, timely local alerts, and community-powered recommendations.

Headwinds

  • Q1 2025 revenue is expected to be approximately $53 million, reflecting initial reductions in ad impression supply tied to the NEXT initiative roll out.
  • Year-over-year revenue growth in the first half of 2025 is expected to be approximately flat.
  • Q1 2025 adjusted EBITDA loss is expected to be approximately ($13 million).
  • The 'switchover' to NEXT is expected to have business impacts in the short term.
  • Reduced spending among certain large advertisers, partly due to a shift towards programmatic ad buying, is impacting quarter-to-date revenue growth.

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 2024

Historical avgQ4 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

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