Nextdoor Holdings, Inc. · NYSE:NXDR
Nextdoor — Q1 2025 Earnings Presentation
43 slides from Nextdoor's earnings presentation, May 7, 2025
Slide 1: Nextdoor Investor Update - Q1 2025
Nextdoor Investor Update - Q1 2025 investors.nextdoor.com 1
Slide 2: John T. Williams, Head of IR
John T. Williams, Head of IR 2
Slide 3: Disclaimer
Disclaimer Certain statements in this Investor Update may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may
Slide 4: Nirav Tolia, CEO
Nirav Tolia, CEO 4
Slide 5: Q1 2025 Performance Update
Q1 2025 Performance Update Users +6% y/y 46M WAU Organic user acquisition again strong in Q1, with nearly 3M new verified neighbors Revenue +2% y/y $54M All channels other than large advertisers showed double digit year-over-year growth in Q1 Expenses Net Margin Adj. EBITDA margin Focus drove margin
Slide 6: The NEXT Nextdoor
The NEXT Nextdoor 6
Slide 7: Goals of NEXT Version 1.0
Goals of NEXT Version 1.0 Deliver timely and Deepen engagement and Drive increased relevant local content frequency of usage and new revenue 7
Slide 8: Content on Nextdoor Was Not Good Enough
Content on Nextdoor Was Not Good Enough Focus was not Content was not Notifications were hyperlocal enough high-value enough not timely enough Addressed by better ML and Addressed by new content Addressed by fewer emails and geospatial targeting that is utility-centric more timely notifications 8
Slide 9: A Transformed Product Experience
A Transformed Product Experience Nextdoor today The NEXT Nextdoor Timely but reactive Real-time and proactive Serendipitous Structured + predictable Neighbor-created content Neighbors + authoritative sources Feed-based UI Structure and improved search Separate conservations AI-generated summaries 9
Slide 10: Three Key Pillars of NEXT Version 1.0
Three Key Pillars of NEXT Version 1.0 Informed Safe Smart News Alerts Recommendations 10
Slide 11: Informed
Informed The vast majority of Americans (85%) say local news outlets are important to the well-being of their local community. Pew Research Center 2024 11
Slide 12: News
News 3,000 local publishers already on board News carousel allows users to quickly read multiple stories Conversations with verified neighbors is a key differentiator 12
Slide 13: News User Journey
News User Journey DISCOVER NEWS HEAR THE JOIN THE IN FEED LOCAL PERSPECTIVES CONVERSATION 13
Slide 14: Most Popular News Categories
Most Popular News Categories POLITICS SAFETY LIFESTYLE 14
Slide 15: Safe
Safe The U.S. experienced 27 “billion dollar” weather and climate disasters in 2024, impacting tens of millions of Americans and causing over $200 billion in damage. National Centers for Environmental Information 15
Slide 16: Alerts
Alerts Content creation and engagement metrics improve during crisis events Shift from reactive to proactive Neighborhood discussion 16
Slide 17: Three Urgency Levels of Alerts
Three Urgency Levels of Alerts GREEN YELLOW RED 17
Slide 18: A Dynamic Map Lets Neighbors Explore Nearby Alerts
A Dynamic Map Lets Neighbors Explore Nearby Alerts EXPLORE WHAT READ NEIGHBORHOOD ABILITY TO JOIN IS NEAR YOU DISCUSSION THE CONVERSATION 18
Slide 19: Smart
Smart 68% of U.S. adults trust people in their local community. Lifeway Research, 2021 19
Slide 20: AI Recommendations
AI Recommendations About 30% of the content on Nextdoor is recommendations Incorporates top feature “Neighborhood Faves” Leverages Neighborhood 20 Intelligence (AI and ML)
Slide 21: Ask a Neighbor AI User Journey
Ask a Neighbor AI User Journey NAVIGATE TO ASK FOR SEE SUMMARY PLUS FAVES TAB RECOMMENDATIONS NEIGHBORHOOD FAVES 21
Slide 22: Examples of “Ask a Neighbor” AI Questions
Examples of “Ask a Neighbor” AI Questions 22
Slide 23: Users Are Enthusiastic About Local AI
Users Are Enthusiastic About Local AI Integrating AI into Nextdoor It's "a great resource is a "great enhancement." for a lot of things." Recommendations are helpful for "Whoa, I like the whole quickly finding things like places to AI thing. Oh my…" get flowers or cycling routes. AI recommendations ge
Slide 24: NEXT Launches This Summer
NEXT Launches This Summer NEWS ALERTS AI RECOMMENDATIONS 24
Slide 25: Matt Anderson, CFO
Matt Anderson, CFO 25
Slide 26: Weekly Active Users (WAU)
Weekly Active Users (WAU) Growth continued as NEXT comes into focus: Q1 WAU was 46.1M, +6% year-over-year, due to: ● Steady organic growth in new users; ● Increased usage and utility during extreme weather events. NEXT focus: increase platform stickiness, starting with Local News, Alerts and Recomme
Slide 27: Platform WAU Aligns With Strategic and Operational Focus
Platform WAU Aligns With Strategic and Operational Focus Consumer expectations Strategic focus Delivering platform value Consumers are shifting toward Our strategy centers on NEXT aims to create meaningful seamless in-app experiences and delivering richer, more engaging on-platform interactions that
Slide 28: This Focus Is On Building a Better User Experience
This Focus Is On Building a Better User Experience Before: Total WAU Now: Platform WAU Includes on- and off-platform users, with the latter Focuses on users accessing features and functionality engaging only with monetizable email content. only available in the app and web experience. 28 Email digest
Slide 29: Platform WAU
Platform WAU Platform WAU will be our key user metric: Q1 Platform WAU was 22.5M, +5% year-over-year. Includes users who open our app or website at least once during a defined 7-day period. In Q1, we are providing historical data for both WAU and Platform WAU. Beginning with Q2, we will report only P
Slide 30: Revenue
Revenue Large advertisers spent less, other channels continue to show growth: Q1 revenue was $54M, +2% year-over-year. Large advertiser spend down year-over-year as we prepare to unlock programmatic budgets. Together, all other channels showed double digit year-over-year growth in Q1. Performance op
Slide 31: Net Income (Loss)
Net Income (Loss) Operating leverage improved year-over-year, following normal seasonal trends: Net loss and margin were $(22M) and (41)%, respectively. Net margin improved by 13 ppt year-over-year. 5 ppts of the margin improvement driven by a -12% year-over-year decline in stock-based compensation
Slide 32: Adjusted EBITDA
Adjusted EBITDA We maintained cost and cash flow discipline: Adjusted EBITDA was $(9M), representing a (17)% margin. Adjusted EBITDA margin improved by 9 ppt year-over-year. We generated positive Operating Cash Flow for the second consecutive quarter. Team productivity, sales and marketing efficiency,
Slide 33: Capital Allocation
Capital Allocation We are committed to disciplined capital allocation: Operating expenses down -8% year-over-year. We continue to increase our operating expense mix toward R&D (+3 ppts year-over-year). Balance sheet provides strategic and financial flexibility: $418M in cash, cash equivalents, and mar
Slide 34: Financial Outlook
Financial Outlook Q2’25 outlook y/y change Barring any new changes in advertiser sentiment, we still expect 1H’25 revenue will be approximately flat y/y, reflecting: Revenue ~$60M (5)% y/y Shifts in large advertiser demand, as expected. Adj. EBITDA ~$(10)M $(4)M y/y Lower Q2 ad impression supply due t
Slide 35: Q&A
nextdoor Q&A
Slide 36: Appendix
Appendix 36
Slide 37: Historical Quarterly WAU, Platform WAU, and ARPU
Historical Quarterly WAU, Platform WAU, and ARPU Some figures may not tie due to rounding. 37
Slide 38: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets in thousands, except per share data (unaudited) 38
Slide 39: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations in thousands, except per share data (unaudited) 39
Slide 40: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows in thousands (unaudited) 40
Slide 41: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present non-GAAP adjusted EBITDA and adjusted EBITDA margin in this Investor Update. Our use of non-GAAP financial measures has limitations as an analytical tool, a
Slide 42: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation in thousands (unaudited) Some figures may not tie due to rounding. 42
Slide 43: investors.nextdoor.com · ir@nextdoor.com
investors.nextdoor.com · ir@nextdoor.com 43