Slide 1: — = = : mare \-
7 \4 — = = : mare \- July 2021. ~~ é ie
Slide 2: Disclaimer
2 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 c
Slide 3: Disclaimer
3 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
Slide 4: Welcome to the Neighborhood
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 Director4 Nextdoor Sarah Friar Mike Doyle Chief Executive Officer Chief Financial Officer Khosl
Slide 5: Connecting neighborhoods one neighbor at a time
5 Connecting neighborhoods one neighbor at a time 5 Connecting neighborhoods one neighbor at a time
Slide 6: Slide 6
Slide 7: Nextdoor is the neighborhood network
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 revenue growth 6
Slide 8: Building back community
8 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 economy (1) Open M
Slide 9: 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 10: People interact with and rely on their neighborhoods every day
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 meet other
Slide 11: A day in the life of a parent: meet Abraham
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 coffee Searches
Slide 12: A week in the life of a small business owner: meet Dawn
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 her business
Slide 13: A week in the life of fire information manager: meet Cecile
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 wildfire Responds t
Slide 14: Strong competitive moat with viral growth loops built in
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 scale Recom
Slide 15: Established product-market fit: enduring neighbor retention
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 the trailing
Slide 16: Combined with strong network effects
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 3/31/21.16 ...Combined with strong network effects... Ou
Slide 17: Increasing penetration globally, top neighborhoods exceeding 60% daily engagement
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 LAKEWOOD RANCH
Slide 18: With an audience that finds distinct value on Nextdoor
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 Visiting, Tot
Slide 19: Nextdoor is one of the most frequently used consumer products
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 on a given
Slide 20: A verified daily audience with significant monetization potential
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 users diffe
Slide 21: Increasing ways to drive acquisition and engagement
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 shareable local i
Slide 22: Expanding engagement by following multiple neighborhoods
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 capabilities a
Slide 23: We can 4.5x our reach with global penetration in line with mature U.S. neighborhoods
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 Households Next
Slide 24: Digital advertising TAM represents $600B+ opportunity
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 Note: Digital a
Slide 25: Connecting neighbors and organizations with highly relevant information
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 customers >2M
Slide 26: Full funnel approach from awareness to action
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 Action Local
Slide 27: Why Nextdoor wins
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 business, and al
Slide 28: Turbocharged leadership team
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 Antonio Silveira
Slide 29: Seasoned Board of Directors
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 Ventures Greylock
Slide 30: Monetization and Outlook
Monetization and Outlook Monetization and Outlook
Slide 31: Financial highlights
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 provides op
Slide 32: Growing base of engaged and monetized users
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 2018 2019 202
Slide 33: Strong foundation for continued revenue growth
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.33 Strong foundation for continued revenue growth +40% $24
Slide 34: Multiple drivers of monetization
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 average weekly
Slide 35: Sustainable growth; additional capital a potential accelerant
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 $6.47 significantly accelerate gro
Slide 36: Viral growth loops reinforce the strength of our model
36 Viral growth loops reinforce the strength of our model Increased Scale Improved unit economics, Increased reach reinvestment for growth & & engagement product expansion Neighbors Businesses Public Agencies Improved advertiser Enhanced advertiser retention & platform performance & additional activ
Slide 37: Risk Factors: Nextdoor's Business and Industry
37 Risk Factors Risks Related to Nextdoor’s Business and Industry Following the [Business Combination] 1. Nextdoor has a limited operating history at the current scale of its business and is still scaling up its monetization efforts, which makes it difficult to evaluate its current business and futur
Slide 38: Risk Factors: Financial and Accounting Matters
38 Risk Factors Risks Related to Financial and Accounting Matters 1. Nextdoor’s operating results may fluctuate significantly, which makes its future results difficult to predict. 2. Certain of Nextdoor’s market opportunity estimates, growth forecasts and key metrics could prove to be inaccurate, and a
Slide 39: Appendix
Appendix Appendix
Slide 40: Attractive Valuation
40 Attractive Valuation Advertising Community Comps Comps 2021E - 2022E Revenue Growth 2022E EV / Revenue 2022E EV / Growth Adj. Revenue 20.0x 48% 0.88x 17.6x 40% 15.7x 0.72x 33% 14.2x 14.1x 13.9x 0.61x 0.48x 23% 23% 20% 9.2x 19% 0.42x 0.40x 0.35x Nextdoor Snap Pinterest Twitter Bumble Roblox Match
Slide 41: Transaction Summary
Transaction Summary ($ 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 42: Adjusted EBITDA Reconciliation
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)42 Adjusted EBITDA Rec
Slide 43: Non-GAAP Operating Expenses Reconciliation
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 amortization ($2.1
Slide 44: Definitions
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 overlap. The nu