Nextdoor Holdings, Inc. · NYSE:NXDR
Nextdoor — SPAC Merger (July 2021)
43 slides from Nextdoor's SPAC merger presentation, Jul 6, 2021
Slide 1: Exhibit 99.2 July 2021
Exhibit 99.2 July 2021Exhibit 99.2 July 2021
Slide 2: Disclaimer
Confidential 2 Disclaimer This Presentation (together with oral statements made in connection herewith, the “Presentation”) is for informational purposes only to assist prospective purchasers in a private placement in making their own evaluation with respect to the proposed business combination (the
Slide 3: Disclaimer: Financial Information and Use of Non-GAAP Financial Measures
Confidential 3 Disclaimer Financial Information and Use of Non-GAAP Financial Measures The financial information contained in this Presentation has been taken from or prepared based on the historical financial statements of Nextdoor for the periods presented. An audit of these financial statements is
Slide 4: Presenters: Nextdoor and Khosla Ventures Acquisition Co. II
Confidential 4 Nextdoor Sarah Friar Mike Doyle Chief Executive Officer Chief Financial Officer Khosla Ventures Acquisition Co. II Welcome to the Vinod Khosla David Weiden Founder Founding Partner and Neighborhood Managing DirectorConfidential 4 Nextdoor Sarah Friar Mike Doyle Chief Executive Officer Chie
Slide 5: Connecting neighborhoods one neighbor at a time
Confidential 5 Connecting neighborhoods one neighbor at a time Confidential 5 Connecting neighborhoods one neighbor at a time
Slide 6: Nextdoor is the neighborhood network
Confidential 7 Nextdoor is the neighborhood network Network effects with online & offline connection is unique Each social link is highly valuable because most commerce is local ~1 in 3 U.S. Households Robust current digital advertising market, future new revenue models Many vectors for sustained reve
Slide 7: Building back community
8 Confidential Building back community 73% say neighbors are one of the most important (1) communities in their lives Knowing at least 6 neighbors (2) can reduce loneliness (3) 75% plan to shop more locally 80% expect to work from home at least 3x (4) per week (5) 2x expected growth of sharing econom
Slide 8: Our purpose
Our purpose To cultivate a kinder world where everyone has a neighborhood they can rely on 9 9 Our purpose To cultivate a kinder world where everyone has a neighborhood they can rely on 9 9
Slide 9: People interact with and rely on their neighborhoods every day
Confidential 10 People interact with and rely on their neighborhoods every day... Local Perspectives Groups Recommendations Connections Businesses Toddler/baby playground meetup community. Hey Neighbourhood, We are new here and seeking community! We have two small children 3 and 1 and would love to
Slide 10: A day in the life of a parent: meet Abraham
Confidential 11 A day in the life of a parent: meet Abraham Kingstowne Thompson Center, VA Reaches out to neighbors for a pasta machine, to make his Hosts 30 coffees in favorite chef’s 24-layer lasagna 30 days to meet people nearby Borrows neighbor’s 7AM 12PM 6PM pasta machine Meets neighbors for cof
Slide 11: A week in the life of a small business owner: meet Dawn
Confidential 12 A week in the life of a small business owner: meet Dawn Grant Park, GA Responds to a question about Checks her Local Deal payroll software from her local dashboard to see how its small business owner group performing and re-ups for another month Checks in with her MON THU SAT Checks h
Slide 12: A week in the life of fire information manager: meet Cecile
Confidential 13 A week in the life of fire information mgr: meet Cecile San Mateo-Santa Cruz, CA Posts real time update on evacuation procedures for Checks the post metrics to the immediate area make sure messages are MON WED FRI getting through Updates Monitors metrics Evacuation Order Sets up wildfir
Slide 13: Strong competitive moat with viral growth loops built in
Confidential 14 Strong competitive moat with viral growth loops built in Real people Local Hyperlocal proximity Businesses Word-of-Mouth Recommendations Trusted information Civic Local perspective Engagement Instant distribution Neighbors Businesses Data/ Local Targeting Help me plug in Hyperlocal at
Slide 14: Established product-market fit: Enduring neighbor retention
Confidential 15 Established product-market fit: Enduring neighbor retention... 74% 65% 59% 54% After two years >50% of our audience remains engaged 3-month 6-month 12-month 24-month Monthly active users (MAU) defined as count of unique members who have started a session or opened a content email over t
Slide 15: Combined with strong network effects
Confidential 16 ...Combined with strong network effects... Our path to engagement growth is proven 2.3x increase in weekly engagement as more neighbors join % of Members Active Weekly reflects U.S. WAUs divided by All time Verified Members (AVMs). Data as of 3/31/21.Confidential 16 ...Combined with stro
Slide 16: Increasing penetration globally, top neighborhoods exceeding 60% daily engagement
Confidential 17 Increasing penetration globally, with top neighborhoods exceeding 60% daily engagement Neighborhoods with top-quartile (>65%) penetration Top 10 engaged neighborhoods (>60% daily engagement) VERNON, BC MECHANICSBURG MILLSBORO LANCASTER ELOY ORACLE MARKET HARBOROUGH WIMAUMA LAXFIELD LA
Slide 17: An audience that finds distinct value on Nextdoor
Confidential 18 ...With an audience that finds distinct value on Nextdoor % of people who visit Nextdoor at least once per month but do not visit this social media platform at least once per month >$1T Aggregate market cap of these other platforms Source: Comscore Media Metrix® Multi-Platform, Cross V
Slide 18: Nextdoor is one of the most frequently used consumer products
Confidential 19 Nextdoor is one of the most frequently used consumer products Weekly Active Users (WAU) engage nearly 4 times a week Source: App Annie. Nextdoor DAU/WAU based on internal data, 2020 daily average. DAU defined as a unique Registered Neighbor who starts a session or opens a content email
Slide 19: A verified daily audience with significant monetization potential
Confidential 20 A verified daily audience with significant monetization potential 1 U.S. DAU and ARPU 90M 36M Annual Reenue per DvAU U.S. Average Revenue per User (ARPU) 12M $10 $18 $59 Source: Company filings and internal data for 2020. Comparison is illustrative as each company calculates daily active
Slide 20: Increasing ways to drive acquisition and engagement
Confidential 21 We have an increasing number of ways to drive acquisition and engagement Contact sync Sharing Neighborhood Guides Video tools Ask a Neighbor Multiplying friend Sharing more content Discovering more in more Making moments Engaging real networks with more people neighborhoods more share
Slide 21: Expanding engagement by following multiple neighborhoods
Confidential 22 Expanding engagement by following multiple neighborhoods Now: Follow the To come: Follow the neighborhoods where neighborhood where I want to spend I live My mum lives I own a the summer I live business I own a I used to live I want to move I volunteer vacation home Browse & follow ca
Slide 22: We can 4.5x our reach at global penetration in line with mature U.S. neighborhoods
Confidential 23 We can 4.5x our reach just by reaching global penetration in-line with our more mature U.S. neighborhoods 312M Households U.S. 128M International 183M +109M Households Future opportunities in existing markets 203M (U.S. / International) Households U.S. 83M International 119M +158M Hou
Slide 23: Digital advertising TAM represents $600B+ opportunity
Confidential 24 Digital advertising TAM represents $600B+ opportunity Large $607B Adjacent Global Markets Home services $355B Global Local commerce Classifieds Real estate $262B U.S. $143B Local events U.S. 83% Growth 2020 TAM 2024 TAM Source: Global and US digital ad markets, eMarketer March 2021 Not
Slide 24: Connecting neighbors and organizations with highly relevant information
Confidential 25 Connecting neighbors and organizations with highly relevant information Global / national brands SMBs / neighbors for hire Public agencies / utilities Hyperlocal targeting & Discovery by relevant Verified distribution with creative at scale audiences flexible targeting ~200 enterprise c
Slide 25: Full funnel approach from awareness to action
Confidential 26 Full funnel approach helping neighbors from awareness to action Sponsored Maps Awareness Sponsored by Posts & Discovery Local context means Nextdoor content is relevant Intent & Sponsorships Dynamic South Star Real Estate Influence Local Ads First-party data creates efficient targeting
Slide 26: Why Nextdoor wins
Confidential 27 Why Nextdoor wins: We are the neighborhood network, strong network effects, and clear monetization upside Nextdoor = Nextdoor is where you plug into the neighborhoods that matter to you. Neighborhoods Purpose-driven brand Purpose-driven brand — promotes growth, differentiates the busi
Slide 27: Turbocharged leadership team in last 24 months
Confidential 28 Turbocharged leadership team in last 24 months Heidi Andersen Maryam Banikarim Mike Doyle Sarah Friar Prakash Janakiraman Head of Revenue Head of Marketing Chief Financial Officer Chief Executive Officer Co-Founder, Chief Architect Craig Lisowski John Orta Bryan Power Kiran Prasad Anton
Slide 28: Seasoned Board of Directors
Confidential 29 Seasoned Board of Directors John Hope Bryant Sarah Friar Bill Gurley Leslie Kilgore Mary Meeker Entrepreneur, founder, chairman, Chief Executive Officer Benchmark Former Netflix CMO Bond CEO, author, activist Jason Pressman David Sze Nirav Tolia Chris Varelas Andrea Wishom Shasta Ventur
Slide 29: Monetization and Outlook
Monetization and Outlook Monetization and Outlook
Slide 30: Financial highlights
Confidential 31 Financial highlights Differentiated products with contextual relevance enable sustainable growth High levels of neighbor retention enable consistent growth and ROI on acquisition spend Network effects increase WAU engagement as penetration increases ARPU expansion with multiple levers
Slide 31: Growing base of engaged and monetized users
Confidential 32 Growing base of engaged and monetized users Scale Engagement Monetization Ending Verified Users Avg. Weekly Active Users (WAU) Avg. Revenue Per Weekly Active User (ARPU) 60M 27.6M 58M 9M 26.7M 52M 48M 8M $4.99 24.6M 7M 51M 6M $4.62 50M $4.23 19.5M $3.86 45M 42M $3.83 33M 3M 30M 13.3M 2
Slide 32: Strong foundation for continued revenue growth
Confidential 33 Strong foundation for continued revenue growth +40% $249M +44% 49% 2018A–2022E Growth $178M +49% $123M +62% $83M $51M 2018A 2019A 2020A 2021E 2022E Forward looking estimates are subject to change. Actual figures may be materially different.Confidential 33 Strong foundation for continued
Slide 33: Multiple drivers of monetization
Confidential 34 Multiple drivers of monetization Increased engagement, +13pts +0.6pts +17pts +31pts improved fill rates, and non-supply dependent local revenue all drive growth 31% growth Y/Y in Q1’21, accelerating from Q4’20 ARPU shown above is calculated by annualizing U.S. revenue divided by the av
Slide 34: Sustainable growth; additional capital a potential accelerant
Confidential 35 Sustainable growth; additional capital a potential accelerant Annual Summary 2019A 2020A 2021E 2022E Total Revenue $83M $123M $178M $249M Current model does not % Growth 62% 49% 44% 40% assume additional capital Additional funding can Total ARPU $4.23 $4.62 $5.93 $6.47 significantly ac
Slide 35: Viral growth loops reinforce the strength of our model
Confidential 36 Viral growth loops reinforce the strength of our model Increased Scale Improved unit economics, Increased reach reinvestment for growth & & engagement product expansion Neighbors Businesses Public Agencies Improved advertiser Enhanced advertiser retention & platform performance & addi
Slide 36: Risk Factors: Nextdoor's Business and Industry
Confidential 37 Risk Factors Risks Related to Nextdoor’s Business and Industry Following the [Business Combination] 1. Nextdoor has a limited operating history at the current scale of its business and is still scaling up its monetization efforts, which makes it difficult to evaluate its current busine
Slide 37: Risk Factors: Financial and Accounting Matters
Confidential 38 Risk Factors Risks Related to Financial and Accounting Matters 1. Nextdoor’s operating results may fluctuate significantly, which makes its future results difficult to predict. 2. Certain of Nextdoor’s market opportunity estimates, growth forecasts and key metrics could prove to be inacc
Slide 38: Appendix
Appendix Appendix
Slide 39: Attractive Valuation
Confidential 40 Attractive Valuation Advertising Community Comps Comps 2021E - 2022E Revenue Growth 2022E EV / Revenue 2022E EV / Growth Adj. Revenue 20.0x 48% 0.88x 17.6x 40% 15.7x 0.72x 33% 14.2x 14.1x 13.9x 0.61x 0.48x 23% 23% 20% 9.2x 19% 0.42x 0.40x 0.35x Nextdoor Snap Pinterest Twitter Bumble R
Slide 40: Transaction Summary
Transaction Summary ($ in millions, except share price) Sources Pro Forma Capitalization Share Price $10.00 SPAC Cash in Trust (Assuming no Redemptions) $416 Total Shares Outstanding 430 PIPE $270 Equity Value $4,301 Existing Equity Holders’ Rollover $3,500 Net Cash $(763) Total Sources $4,186 Enter
Slide 41: Adjusted EBITDA Reconciliation
Confidential 42 Adjusted EBITDA Reconciliation 2019A 2020A Net Loss $(73.3M) $(75.2M) Depreciation and amortization $2.1M $3.1M Stock-based compensation 14.1M 22.6M Interest (2.5M) (0.7M) Provision for income taxes 0.2M 0.1M Acquisition-related costs 0.6M – Adjusted EBITDA $(58.8M) $(50.2M)Confidentia
Slide 42: Non-GAAP Operating Expenses Reconciliation
Confidential 43 Non-GAAP Operating Expenses Reconciliation 2019A 2020A Operating Expenses Cost of revenue $13.7M $21.6M Sales and marketing 81.0M 80.3M Research and development 42.6M 69.2M General and administrative 20.7M 28.8M Total GAAP Operating Expenses $158.0M $199.9M (-) Depreciation and amorti
Slide 43: Definitions
Confidential 44 Definitions Metrics Definition U.S. Household A single (U.S.) residence containing at least one Current Verified Neighbor The number of active Launched (10+ member) neighborhoods. A “neighborhood” is a specific geographic area with a defined Neighborhoods boundary. Neighborhoods do not ove