Nextdoor Holdings, Inc. · NYSE:NXDR
Nextdoor — Khosla Ventures Acquisition Co. II — SPAC Merger (August 2021)
43 slides from Nextdoor's SPAC merger presentation, Aug 12, 2021
Slide 1: Exhibit 99.1 – August 12, 2021
August 12, 2021 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This Presentation (together with oral statements made in connection herewith, the “Presentation”) relates to the proposed business combination (the “Business Combination”) between Khosla Ventures Acquisition Co. II (“Khosla”) and Nextdoor, Inc. (“Nextdoor”). This Presentation does not con
Slide 3: Disclaimer
Disclaimer This presentation includes certain non-GAAP financial measures (including on a forward-looking basis). These non-GAAP measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an al
Slide 4: Welcome to the Neighborhood
Welcome to the Neighborhood Sarah Friar Chief Executive Officer Mike Doyle Chief Financial Officer David Weiden Founding Partner and Managing Director Vinod Khosla Founder Nextdoor Khosla Ventures Acquisition Co. II
Slide 5: Connecting neighborhoods one neighbor at a time
Connecting neighborhoods one neighbor at a time
Slide 6: Slide 6
Slide 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 Robust current digital advertising market, future new revenue models Many vectors for sustained revenue growth High barrier to entry: network difficult & time consuming to bu
Slide 8: Building back community
(1) Open Mind Strategy 2020; (2) Nextdoor Global Loneliness Study (3) Brightpearl, 2021; (4) Owl Labs October, 2020; (5) Statista, 2021. 73% say neighbors are one of the most important communities in their lives(1) Knowing at least 6 neighbors can reduce loneliness(2) 75% plan to shop more locally(3
Slide 9: Our purpose
To cultivate a kinder world where everyone has a neighborhood they can rely on Our purpose
Slide 10: People interact with and rely on their neighborhoods every day
Groups Recommendations Businesses Connections People interact with and rely on their neighborhoods every day... Local Perspectives 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 meet other fam
Slide 11: A day in the life of a parent
Searches for school tutor A day in the life of a parent: meet Abraham Kingstowne Thompson Center, VA 7AM Borrows neighbor’s pasta machine Meets neighbors for coffee Recommends a local restaurant Hosts Dads group 6PM Drops kids off at school, remembers to search for an after-school tutor Reaches out
Slide 12: A week in the life of a small business owner
Updates her business page A week in the life of a small business owner: meet Dawn Grant Park, GA Checks her dashboard Responds to neighbors Checks in with her business group Promotes new job listing Updates with new spring time hours, and adds a few new photos Checks her Local Deal dashboard to see
Slide 13: A week in the life of a fire information manager
Sets up wildfire webinar A week in the life of fire information mgr: meet Cecile San Mateo-Santa Cruz, CA MON Alerts neighbors to local wildfire Monitors metrics Responds to questions THU FRI Organizes and promotes wildfire awareness webinar ahead of fire season Posts real time update on evacuation
Slide 14: Hyperlocal at scale with viral growth loops
Neighbors Help me plug in Businesses Hyperlocal at scale Strong competitive moat with viral growth loops built in Local Groups Local Marketplace Public Agencies Verified people & info Local Recommendations Local Businesses Civic Engagement Analytics Publishing Tools Instant Messaging Instant Distrib
Slide 15: Established product-market fit: enduring neighbor retention
Established product-market fit: Enduring neighbor retention... Monthly active users (MAU) defined as count of unique members who have started a session or opened a content email over the trailing 30 days. 3 month MAU is defined as active in the 30 days preceding day 90, 6 month is active in the 30 d
Slide 16: Our path to engagement growth is proven
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. ...Combined with strong network effects...
Slide 17: Increasing penetration globally, top neighborhoods exceeding 60% daily engagement
Increasing penetration globally, with top neighborhoods exceeding 60% daily engagement Neighborhoods with top-quartile (>65%) penetration Top 10 engaged neighborhoods (>60% daily engagement) ELOY MILLSBORO ORACLE LANCASTER VERNON, BC MECHANICSBURG WIMAUMA LAKEWOOD RANCH LAXFIELD MARKET HARBOROUGH Da
Slide 18: An audience that finds distinct value on Nextdoor
...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 Visiting, Total
Slide 19: One of the most frequently used consumer products
Weekly Active Users (WAU) engage nearly 4 times a week Nextdoor is one of the most frequently used consumer products 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 on a given da
Slide 20: A verified daily audience with significant monetization potential
Source: Company filings and internal data for 2020. Comparison is illustrative as each company calculates daily active users differently. Snap includes U.S., Canada, Mexico, the Caribbean and Central America. Twitter and Nextdoor include the U.S. only. 1. Snap and Twitter DAU and ARPU figures reflec
Slide 21: Increasing ways to drive acquisition and engagement
Sharing Sharing more content with more people Neighborhood Guides Discovering more in more neighborhoods Contact sync Multiplying friend networks Ask a Neighbor Engaging real local insiders Video tools Making moments more shareable We have an increasing number of ways to drive acquisition and engage
Slide 22: Expanding engagement by following multiple neighborhoods
Expanding engagement by following multiple neighborhoods Before: Follow the neighborhood where After: Follow the neighborhoods where I live I live My mum lives I own a business I want to spend the summer I used to live I want to move I volunteer I own a vacation home
Slide 23: We can 4.5x our reach with global penetration
45M Households U.S. 37M International 8M We can 4.5x our reach just by reaching global penetration in-line with our more mature U.S. neighborhoods 45M Households claimed in existing markets (U.S. / International) +158M Households Next opportunity for additional households at 65% penetration (U.S. /
Slide 24: Digital advertising TAM represents $600B+ opportunity
$607B Global $355B Global 2020 TAM 2024 TAM Large Adjacent Markets Home services Local commerce Classifieds Real estate Local events Source: Global and US digital ad markets, eMarketer March 2021 Note: Digital advertising market is based on eMarketer U.S. ad spend and excluding B2B, which represents
Slide 25: Connecting neighbors and organizations with relevant information
Public agencies / utilities Verified distribution with flexible targeting >5K public agencies on platform SMBs / neighbors for hire Discovery by relevant audiences >2M local business claimed pages Global / national brands Hyperlocal targeting & creative at scale ~200 enterprise customers Customer da
Slide 26: Full funnel approach from awareness to action
Intent & Influence First-party data creates efficient targeting Action Opportunities to purchase and act with ease Awareness & Discovery Local context means Nextdoor content is relevant Full funnel approach helping neighbors from awareness to action Dynamic Local Ads Local Deals Finds Sponsorships M
Slide 27: Why Nextdoor wins
Why Nextdoor wins: We are the neighborhood network, strong network effects, and clear monetization upside Nextdoor = Neighborhoods Nextdoor is where you plug into the neighborhoods that matter to you. Purpose-driven brand Purpose-driven brand — promotes growth, differentiates the business, and align
Slide 28: Turbocharged leadership team in last 24 months
Sarah Friar Chief Executive Officer Mike Doyle Chief Financial Officer Prakash Janakiraman Co-Founder, Chief Architect John Orta Chief Legal Officer & Head of Corp Dev Heidi Andersen Head of Revenue Antonio Silveira Head of Engineering Bryan Power Head of People Craig Lisowski Head of Data, Informat
Slide 29: Seasoned Board of Directors
Leslie Kilgore Former Netflix CMO Bill Gurley Benchmark Mary Meeker Bond John Hope Bryant Entrepreneur, founder, chairman, CEO, author, activist Sarah Friar Chief Executive Officer Seasoned Board of Directors Chris Varelas Riverwood Capital Nirav Tolia Co-Founder David Sze Greylock Capital Jason Pre
Slide 30: Monetization and Outlook
Monetization and Outlook
Slide 31: Financial highlights
Financial highlights Differentiated products with contextual relevance enable sustainable growth High levels of neighbor retention enable consistent growth and ROI on acquisition spend ARPU expansion with multiple levers provides opportunity to continue to increase monetization Network effects incre
Slide 32: Growing base of engaged users
Growing base of engaged users... 32 WAU defined as the count of unique neighbors who have started a session or opened a content email over the trailing 7 days. Some figures may not tied due to rounding. Scale Engagement Avg. Weekly Active Users (WAU) Ending Verified Users U.S. International Q2 2020
Slide 33: Leading to increased revenue and monetization
...Leading to increased revenue & monetization 33 Revenue Monetization Avg. Revenue Per Weekly Active User (ARPU) Millions (M) Q2 2020 $28M Q2 2019 $20M $46M Q2 2021 2019 $83M 2018 $51M $123M 2020 Q2 2020 $3.97 Q2 2019 $4.23 $6.28 Q2 2021 2019 $4.23 2018 $3.83 $4.62 2020 ARPU shown above is calculat
Slide 34: Strong foundation for continued revenue growth
$51M $83M $123M $178M $249M Strong foundation for continued revenue growth 49% 2018A–2022E Growth 2018A 2019A 2020A 2021E 2022E +62% +49% +44% +40% 34 Forward looking estimates are subject to change. Actual figures may be materially different.
Slide 35: Sustainable growth; additional capital a potential accelerant
Sustainable growth; additional capital a potential accelerant 5 Forward looking estimates are subject to change. Actual figures may be materially different. For a reconciliation of non-GAAP financial measures to GAAP, see appendix. Current model does not assume additional capital Additional funding
Slide 36: Viral growth loops reinforce the strength of our model
36 Increased reach & engagement Increased Scale Enhanced advertiser performance & additional revenue opportunities Improved advertiser retention & platform activity monetization Improved unit economics, reinvestment for growth & product expansion Neighbors Businesses Public Agencies Viral growth loo
Slide 37: Key Dates & Next Steps
37 Key Dates & Next Steps August 12 Analyst Day September 20 Investor Day Early November Transaction close (est.) Post-close Q3 earnings
Slide 38: Appendix
Appendix
Slide 39: Valuation
Valuation 2021E - 2022E Revenue Growth 2022E EV / Revenue 2022E EV / Growth Adj. Revenue 40% 46% 31% 24% 23% 22% Nextdoor Snap Pinterest Match Roblox Bumble Nextdoor Bumble Pinterest Match Advertising Comps Community Comps 23% Twitter 14.4x 20.9x 11.2x 17.4x 12.1x 11.5x 8.3x Snap Twitter Roblox 0.36
Slide 40: Transaction Summary
Transaction Summary SPAC Cash in Trust (Assuming no Redemptions) $416 PIPE $270 Existing Equity Holders’ Rollover $3,500 Total Sources $4,186 Cash Proceeds to Nextdoor $642 Equity Consideration to Existing Equity Holders $3,500 Estimated Transaction Expenses $44 Total Sources $4,186 Share Price $10.
Slide 41: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 41 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)
Slide 42: Non-GAAP Operating Expenses Reconciliation
42 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 amortization ($2.1
Slide 43: Definitions
Definitions 43 Metrics Definition U.S. Household A single (U.S.) residence containing at least one Current Verified Neighbor Neighborhoods The number of active Launched (10+ member) neighborhoods. A “neighborhood” is a specific geographic area with a defined boundary. Neighborhoods do not overlap. V
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