- Earnings call transcript Q3 2022

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Operator

Good afternoon. Thank you for attending today's Nextdoor Q3 2022 Earnings Call. My name is Frances, and I'll be your moderator today. [Operator Instructions] I would now like to pass the conference over to our host, Matt Anderson, Head of Investor Relations with Nextdoor.

Matt Anderson

Thank you, Frances. you XXXX us financial thank Nextdoor's to and quarter third results. afternoon, for today joining review Good With us Officer. on Chief Executive the call today and Doyle, are Mike Chief Financial Officer; Sarah Friar,

related During we and variety forward-looking under They guarantees securities this federal of are uncertainties. not business These are future may statements risks statements statements call, laws. of that to make subject are our performance. a to

expectations from Our actual in forward-looking statements. differ results reflected any materially could

factors the filings website For Investor affect risks earnings SEC's material that a and important refer SEC could of as actual other our website of risks today's the available release. other please results, our discussion as Relations section the our factors and important in the well and to in on discussed

discussed QX financial measures today's released Shareholder of directly measures A reconciliation their be Sarah. to the measures financial today. comparable the that, GAAP like non-GAAP in call. XXXX will these found to conference to turn most I'd call Letter over With be on can Additionally,

Sarah Friar

demand. are Matt, customers, areas product Thank and and challenging this can for effect another for quarter advertisers everyone. feel participants providing volatile was development, we the value control, beginning neighbors QX helping neighbors the of advertising hello, and increasing their and environment, community to more many are focused verticals and utility on and industry including In goals. we you, through reach

investments growth this We WAU see in QX driven getting highly successfully This a boost peers. X benefits learning XXXX notifications, platform X% driving reach our seeing and from engaged. which of came are beginning in On growth active the new AI each of comparing to built We're that machine neighbors we strong remains XX% by growth on front, year-over-year weekly beyond. upon XX% and U.S. organically quarter. with the since the primarily and by to will favorably was the XXXX, and pandemic, in quarter-over-quarter, and users, into added a neighbor WAU grew and sequentially. new evidenced year's in This We've focus and WAU QX. onto net platform XX% generated and held by over million overall WAU, and neighbors smarter U.S. sophisticated to engagement more ML AI the as greater continue XX%

harnessing We through our experience the which on neighbor used set, are greater when getting only appropriately, to data started transform the personalization. power has neighbor

sessions had investment indicates benefit targeting growth through quarter strong expect of also to both quarter. straight exceeded accelerated more Nextdoor's sequential growth WAU supply. another impressions also performance to customer growth, improved Notably, audience. engagement and sessions of ultimately the leads We Strong which we this high-intent frequent third for increasingly and

quarter, In U.S. third neighbor which neighbors Our revenue political on included efforts feature native and Discover Reminder out to WAU directly growth. businesses the discourse a midterms. with are initiatives encourage civil Civility introducing launching to the Maps Faves, allows and Election connect the during building the within focused surface,

Map with X% Treat platform our Some neighbors Beggin’ sponsored and well Big MeetUp million. Halloween of partnerships The Purina revenue. the as to including in contributed Revenue as Neighborhood most to on of Verizon advertiser Dog the visible quarter Brand growth in our $XX grew number our Treats, by year-over-year

in from customers. While quarter, reflect advertising of with across last it guidance our this range does in headwinds a was spend line continued

a financial key real this notable few verticals, services is in us, particularly and estate. For including

a result ability but returns also realized achieved just Shipt, was proximity, existing who a intent in called delivery on engagement to benchmarks, recall, in out same-day businesses trend that goals with is We closest customer hold from of earlier those we a with conversion pockets one connect well a who in are strength of in grocery their quarter, and first mid-market As of you continuation including of service and who did and year. the both Shipt highest see our Nextdoor. those a the advertisers. awareness industry this example the brand power. new not above purchasing

In fact, primary their Nextdoor decision XX% the of or neighbors joint purchases. household are on makers

the including also We partnerships their Neustar in the measurement help third-party our expanded Oracle advertisers spend. companies and to Advertising, quarter, such as with Lucid of understand efficacy

to top to continuing we simplified In QX, platform, developing for facilitate process and a the campaign delivering progress ad greater automation are added We step tool management priority ad self-serve further customers. on to our creation value our to all important and greater make advertisers.

on public outcomes increase to we quarter server, as of early full on In on early ad are spend, our allowing the QX We our strategy utilize to focus slowdown ad our a progress agencies. positive. resilient sales also sets and to advertising indications back-end platform. with of a response customer selection our own evolved data us first verticals and such proprietary made running in proprietary healthcare was and customers, our campaigns recession

never vertical In purpose the of to that purchase campaign light government sentiment erode. new One global total for the consistent with important, across illustrates of campaign, was that, vaccine companies brand, already enabled on market Government, backdrop as for and in Moderna's closing, correlation high and list, Nextdoor resilient advertisers been agencies engagement is Throughout recession our was addressable platform. economic fit overall, today perform. to pharmaceutical agencies. the both mentioned global their higher to management continues more of ad ads Nextdoor Moderna. through especially Nextdoor represents a natural even between we in given vaccines quarter the continues The campaign in the states from also a there hesitancy. another especially our headwinds, ran a has engagement we success self-serve quarter, and In

public a roadmap is ever as ahead. resource we platform the and about neighbors, unique as and for Our excited are businesses agencies, product

a million over We volatility on have the ever now may to I'll details cultivating but turn with long-term remain to balance in as rely and a for financials. ahead, world committed strong over more our we're has we as everyone be confident against $XXX execute we a capitalized team to growth on on, sheet it where opportunities. are in kinder to neighborhood our strategy. our and There place, well Mike

Mike Doyle

Thank afternoon, and Sarah, good everyone. you,

WAU and on over in around of of we noted, we Community proud Valued This Ian prevent build would power heat in to $XX to the neighbors neighborhoods summer millions late utility have is the the particular, of Flex QX, strategy outages Active Sarah in both organizations grew growth to people and helping unparalleled over Florida In Office million. of advertiser the of impacted Alert community to quarter, XXX,XXX As way that neighbors helping combination are reflection a delivered an the to and Hurricane disseminate Governor our Charlotte updates the County wave. world. from across during California

the in of Turning an year-over-year. saw to revenue. In spend. $XX quarter, QX we softness increase X% million, advertising revenue was

partnerships year-over-year predictable. a QX lower customers. and certain in with impression. from was change spend as bottom near-term We revenue margin care, delivered cash, levels international a equivalents common our we Adjusted such of we the SMB negative QX customers marketable Consistent share in areas ended and XX% of quarter for Class a though end on WAU repurchase program resilience The mix per growth of year-over-year We May deleveraging majority brand of government mid-market have million had QX $X.XX, by campaigns, objectives. from saw health also strong of ARPU Express. authorized repurchased monetization grow, saw the securities. growth several also quarters, revenue $XXX a over primarily and growth EBITDA both continued verticals, result million, remains advertisers million relatively relatively partially healthy American stock. our a less and telco. sponsored the $XX reflection in offset less from markets A direct loss was This including of to representing of of to and and recent Spend top and We declined CPMs margin. monetized is the by or the funnel as XX% $XX across since and response Neighborhood tech of Favorites of stronger was cash with at spend

forward. outlook. evaluate will opportunities continue looking with We end to our our I'll allocation capital

QX range. and our million, growth rate This and $XX the of loss outlook negative implies year $XX million the is between of which million, of XX% midpoint rate year-over-year the adjusted full at million of between $XX revenue $XXX a growth XXXX expectation of a the adjusting $XX to revenue are We of million. $XXX midpoint to year-over-year million XX% EBITDA at a approximately range XXXX and an

We near-term in are expecting continued in variability advertisers from resulting in budgets revenue. tightening

we of in by negative streamline by marketing have lower margin the year XXXX adjusted reducing leverage keeping full headcount partially margin variable costs forecasting flat. neighbor namely is is steps The a to This guidance and flow-through now our are we XX%. organic Notably, to prior change from relative to We costs net see revenue. offset be strong. acquisition as remains taken lower expenses, operating growth EBITDA

guidance of operating in and to light sequentially prudent decrease a we expenses result, a believe expect We both QX represents As year-over-year. conditions. our current approach market

operator focused growth results that, remain joining turn and reflect our you including growth. revenue the With results, healthy highly long-term QX progress earnings important to We I'll it on Our Thank and call business engagement. WAU Q&A. today. neighbor in for driving over for

Operator

the from first line of Our Mark Mahaney Instructions] [Operator Evercore. comes with question

Mark Mahaney

which One please. growth on bit? declined U.S. and last in back kind that peel this little that's of after maybe a questions, the the quarters the modestly in that quarter. guess WAU the I million -- you Could two U.S. sequentially. just adds two in WAU Any

it little you change the of of what that's direction XX% channels. our channels? So for effective bit. WAU driving growth? talk a word Like in anything something WAU that kind you Is about of still channels, to game talk that that Just What's And you? do done? those in are you've largely when then Is adds. this the organic particular come most think the the drove through mouth

Sarah Friar

Mark. you, Sarah here. Thank Great. It's

very and Number AI we this content years and now What know be doing of that made, investment neighbor quite draws and through So right we've with incremental first allowing on really within right right rate, year-over-year learning driving the worked things. happy sequential couple one, growth, go million sets WAU our time, is back definitely notifications the that We terms the deeply machine to beyond see it that, to did added. is that's a XX% elements definitely to platform $X growth. around launched What's help them a other your and yes, total for that that year engaged. to quarter we also of us things. lot we in And data at point, we've deep starting platform to of the that the WAU on growth in front in delivery. inherently are then of the get get But the and notification we them and where begin able it personalized when and multiple the

foremost, a more and map First much native experience.

if of a Once we a that now post. that send whole to our to to, that of because don't So you just to off engine neighbors about to more you Map, Halloween today, Nextdoor be something that pin be map, reacted pin have to on. that's bring but notification the the available yourself a on becomes platform on, sets you think back create commented post, kind on,

beautiful flywheel. it creates that so And

Faves. Second here. going thing is that just we getting We're launched

ask recommend people business. natural the like on As XX either Nextdoor, I a something we've a you come date. recommendation the for step to know, for to our think And to platform seen over to very recommendations for million is business or when them

to very get have that because to have community know very very, year, And see space Now much word to an more your how reskin a decide terrifying to also how neighbors we we're But engagement in action through then you platform inherently to a We get well a to this the but businesses took Valued feed, the engage, Faves, to simple much resulting them Surface absolutely now Discover your we right? customers that And you positive. you more ultimately this be for posting it's to to that Sale much page, who to more for way a simplified of neighborhood. to completely owning to tends who For & in see deliberately big outlined more notifications. or member from have more step itself. Active be little more get consumer a earlier Free finally,

would What's was came So really, on say, organically. a XX% On big three your driving very overall question, neighbors new to organic, shift that. today things. second of with is which I that yes, regard

First of word all, it of mouth. is organic

in like U.S., to campaigns see, very particularly we've although to somewhat the step nice We're or brand one in But countries where done there. in we're in We overall Australia in have and do activations, do one we being outside quite work London. up households, already involved in brand four Canada, awareness upping penetrated in our in we've keep a UK, big awareness. seen big three

a thing that is investment Second we've in done Connections. big

of our signal giving or feed, want who guests have know. personalize you you may from. invite to chance an know us gives you Nextdoor a you is to way Connections to So you who to now your a hear Connections opportunity but also already

And hopefully, finally, that convert pulls So are them people Nextdoor, that we neighbor to the then warm a platform. in on not your address become but partnerships. Nextdoor, book to introduction and them on

When all our other put out sites. to engage that we as and people people come the API on good A doing chance sites. That allows people's a Nextdoor that of We lot gives to for partnerships. local new a neighbor. have are of the get allows a to content is then what us about taste Nextdoor more who to to in to through a example is definitely engagement to again, but neighbors, started platform Microsoft is for it to up are invest already content

are our those that very for big investment And So XX% happy to three us charge areas in it organic because of puts of destiny. yes, number us. were really own we the see

Operator

question. your you for Thank

Citi. with Our next Josey Ron from comes question

Ron Josey

a I maybe to wanted quick ask Mark, follow-up Sarah. to

et tech think Another Mike, area dive Can XX% talk sessions? a ones, for ad the has of the company, on platform about to struck on cetera. using have that up of verticals? some time, verticals, focus was XX% the -- which Or getting heard on the drivers team sequentially. thing notifications telco, a stabilize we me then, led People you up more, so some resilient started? sessions sort other talked that about I me those to verticals And are better, the more struck cetera. of health going revenue and are to we're Faves, sort newer these forward? been penetration we care, on are out more that for Because that impressions, should more government just Is of the et we just focused Maps, where and help

Sarah Friar

Great.

Okay. I'll question. the session start on

Neighbor, us So comes then show who year-over-year. sessions to is what have of we is coming like someone is back, of you yes, go funnel that engaged funnel, are And from sessions weekly way are looks for the monthly you that a that But are almost just back. things to when top a new to daily. how engaged for frequently seeing our segments we're segments one grow coming people most XX% seen Verified and

are for high It's have So again, are a where communities utility, strong we And comes WAU avenues to more that ratio more back more fit, you know, frequently. XX%. you I product have building as now those bringing pretty think of to over DAU. you back this market people

of So week. on Xx weekly coming which average, back a times they're important. people is actives about so our multiple notifications per why is those not the back platform come coming in back, maybe And day,

quarter, which former growth back go the which data that do important future coming call sections that's backdrop ultimately, to standpoint. potential right straight revenue settle step, for third little harder can we then accelerate frequency, And we've people an a we point the now builds is impressions. growth. revenue out just drive indication the about in that need thing seen the impressions those Nextdoor did why You the order macro another more but that's It's given of from the for our most because is to a is

Mike Doyle

is Mike, -- And I'll verticals and advertiser take the demand. second this question, amongst on

little I bit So this have tech the healthcare, of and resilience. a as on out government, we that called the three platform. quarter, position areas and different telco

sales So services, pushes like endemic services, things Healthcare, quite during home our both pandemic initially then Map. platform. reminder, of with out self-serve and organization. to we we into for It first, the governments verticals those of for verticals. telco areas earning been just like been pushes the we the retail, expansion was one behind security, And had our a I'll Help tech retained, through top have Healthcare financial home and helps fit also with us. us be early spenders. to product And some that diversity the advertising add had new larger amongst our been advertisers and some But new pleased tech called have our new adoption time. is telco great for performance advertiser expansion just increase just to on platform. as continue verticals mid-market an have X the their are are and

Operator

comes from the Goldman with Sheridan Sachs. Our next question line Eric of

Eric Sheridan

Hopeful some is the company first facing has of bit angle. an could of recession mine given lack well versus and of vertical advertiser expansion mean as to think own the I natures you from there an advertiser your geographic existing of that. immune still be well environment platform and think monetization better effects versus that fair cyclical team. to of and coming mute of the about you more cyclical following how to against some little noncyclical what probably phase bit the do of -- how you advertising with the seem headwinds advertising up environment a a on just be to elements Ron's in different possibly of ad might and it for in you're enough When at of change the about a a just little be a term, might the repositioning XXXX, and that base you of bit their going question early maybe growth. Maybe sort inorganic part

want funnel how the of of bit around platform message were in about advertisers that mode leverage engagement's thinking growth a out like with was what should happened or up to lining this next of irrespective yield I investments revenue So follow-up. investments that model environment, quick better output what investments, this year? the be sort you're maybe investment staying how clear operating little The And one then 'XX. understand year seeing against in lapping you that the especially of those to and and looking on we're on we in year could that and the elements advertising cause the bottom all

Mike Doyle

This is Mike.

me the to question. first attract and us our take Let We'll retain advertisers. optimism give new about ability

and foremost, in attract and help be demand perform managed benefit to calls, things and something the to in, campaign first it's as funnel. we're spend also of called that response. able model. campaigns the we've continue think brand advertisers to our in prior I difficult like we able currently out to modify advertiser marketing or able a And awareness to their thereafter, we're we been pivot do to to to to across that from continue our like direct shifting that's brand And declining

relationships So enterprise large conversations our with we we'll lean And there. continue those to in have direct and customers.

to our being and scale attract mid-market Additionally, with different product, expansion of the economically. able advertisers different -- is scale of is

call spending of retain and helps And third have progress And to or mid-market thing they're seen us we our is in a managed is enterprises out what the so large smaller retention that demand. model with business whether behind I'll advertisers. in great attract high-touch then

spend thereafter advertisers is business. size for where while they've in from think their and largely so gives optimism the headwinds ability retain our come own what them challenges campaign in longer performance to those we've to delivered the platform. had advertisers on reaction having revenue us term But I reducing or And

Sarah Friar

We in right. terms with a dive then building question, of in the I'll it. And platform just very specifics. how Nextdoor, second But broad-based let unique think we're Mike about we know

only neighbors the real we one at have local doing scale. real only platform, the of addresses. On neighborhood are top at We that,

high-intent also this kind and of proximity, feel. of community this have have great audience We power we

So it's for very done a potent advertisers, well. combination

and means keep for that both what sides the next both we and to year, absolutely to network, do tech then want investing engaging ad to about also neighbors think on them building to platform of investment we stack. out keep As keep grow our our new

build quickly an tech we On That's time, bill from we're be of to to fact course, slowly the see should platform, moving the the highlight that. unlock high sitting million to $XXX sheet. a the marketing. organic And stack, for leverage drive self-servability us a all-time on a we XXXX. through And lot model. own said seeing The our mid-market hopefully XX%, big starting at when ad And leverage real terms that we're on former, a earlier. revenue that it as we've coming The have then us lot an we we moving the was in done do through not we are I giving of to same of are of when through in a benefit like that platform. fact is balance proprietary At XXXX. cash should flow drive incremental the the of that more plus neighbors

we to So that appropriately we big investing are make against opportunity. want sure

into balance down. the think as is while how the I mindful tough definitely upside begins macro we we potential a being for we against think to moment. everyone at XXXX. go that So about how the settle our how through the economic keep waiting conditions environment balance revenue, opportunity we And pretty assuming and it's investing us on of

Mike Doyle

just in And we've months add, the driving made us and I'll engagement. driving resulted WAU the over investment Yes. really I has last XX think

QX. had which also in expect our very we've a us so growth costs, a a in our focus is will more QX how leverage the tight the model And unique that's And top ultimately controlling advertisers and where XXXX. our thinking leverage And in also We've larger help come into thereafter. supply where in same giving and -- about flat will for growth that had on line audience provides model. to leverage that is headcount

leverage leverage from growth continuing experience P&L should And on the 'XX. so see to control the then audience of and engagement with in side we where the in cost provide is

Operator

Our comes Morgan Nowak from next question Brian Stanley. with

Brian Nowak

I have two.

the one, you on just give If are increasing one back suppose go X.X the point update than have. advertisers bringing to the could you've just second How dilution advertiser overall and unrecognized advertiser definitely for the new flow and the we And on macro per could of sort to spend you can investment and potentially kind the progress on And on think how quite comp a about you First look through advertiser. as bit managing of that through what XXXX million, growth sort more the be of balance. a thinking an made Q? to sort comp us there's through about board stock-based $XXX increasing come years of stock at to higher cash the challenging backdrop. we next of Q, of base

Mike Doyle

Yes.

on me advertisers. take question number the first of let So

and first seeing gives of revenue that of is. question great And drive when helps mid-market. about active advertising us segments spend and active where then is -- -- platform. which think we and of -- on part enterprise, to XX,XXX there the given budgets I demand see we on And the page new to and from our marketing is took little less the Where to bring attracting that million profile we But the we in opportunity in time we're an platform, excited we're some advertisers future The potential enterprise in any logos more the than X,XXX businesses have increase our headwind big SMBs their is there advertiser. advertisers, platform, which the and paid on is a this headwind of at a market in so to have more around SMB drive majority And biggest of you SMBs. SMB have advertiser, engaged which with there, have and spend we're the revenue, the And we our that per active businesses push their base deeply retention was products. three about their to result advertisers products. but comes and one XX,XXX between It's spend allow. than when the claimed that X.X to penetration second think some side, part per the onto to mid-market

leverage was second compensation and stock-based Your there. question on

by things. anticipate So stock-based One in the compensation And of our headcount team have the half the is size the couple in in and we expand I flat mentioned, growth our in really, But driven just of QX a is held we've of did as year. team. first doing same QX.

additions. The half relative part new team of growth is seniority of also about and the that first those competition second in the and

a public so then team And is senior as new And company. adding impact there. the were third piece we some and critical just roles to the that has that

that stock of we will a public were then cost gate particularly And I our out higher the nature versus the finally, as in company initially had a private that our awards, company. so buyback. add And as ones just

taking the have our program, under market $XX And shares repurchase share so our to acquiring out helps on dilution, the million in and which shares market. put we of cash work of

Operator

Youssef comes Squali with Truist Our from Securities. next question

Youssef Squali

through I plans I you're into maybe me not during different guiding but just if segments, your maybe question how next Let you think maybe -- trying for and couple. -- that apologize a as cost this just to are And say, can answered, by plan side profitability, uncertainty, self-serve XXXX, XX case what it? growth prior the parts to you lot know relative et SMB, cetera. the path do path year about has there is there your we et sense of base year, -- and -- been budget for moving not? ultimately joined. Eric's of you versus extended of as quarter to to enterprise yet, quarter, Has try kind a you I Can this Really you and One, you maybe and shortened? I Mike. just are your you the us since, business, baking XXXX it next know the scenario are breakeven give for as cetera, get maybe I months is mid-market if to a the of but about thinking just ago? your -- But was

Mike Doyle

This is Mike.

those Let a at me one time. take

first, was first think, segment your I So growth. on question

diversity performance. that pleased ability the We But of provided have advertiser in -- of see spend, of and of us. current amount the improves detail. improve which we're in advertisers I of is what that huge where And we're runway the growth quarter, to helps I level we're what mid-market continuing to rapid seeing there's and front to in derisk ad group also haven't the with think revenue we a

comment we'll enterprise, our X potential but go-to-market. and mid-market front huge with we in and in that penetration lot SMB segments of have us, future to So periods, have customer a of all drive on

one. that's So

So I the second path on one was breakeven. think to our

really yet is And think our 'XX scale on have and so in providing of feel what revenue. guidance strongly and we're business beyond, on comes about commented leverage from not but the I we

engaged neighbor on climate And and the engagement. can we're things platform in, is that that which businesses on we're of we so where currently the acquisition the new growth, active in overall focused control, on is

and in we so a value said, we feel with discipline show demonstrate in has deliver long-term not breakeven the to have the And and do the putting attractive in but well-tested demonstrate path leverage about on showing espouse and about also our peers. profitability that to able in advertisers financial one years. that been that unique That audience, something climate, And the it's supply, model. is larger strongly to that plan to to need from last happen the something leverage with and model going we increase margins that margins. it's that's current continue with eventually gradual we the several to great XXXX, long-term we see feel to ability It's a for and to our

Operator

with Brian question Wells Fitzgerald comes next Our Fargo. from

Brian Fitzgerald

space maybe measurement suited bit more more of were SMBs as First, self-service insights mid-market and partnership a others We caliber or of to leverage speak to the those to the of some the those hoping well and should aren't specifically high a appeal the Or the the on predominantly to enterprise? SMBs relationships. you attribution Oracle the level maybe in and could some side? and at then

Sarah Friar

Thanks, for that. Great. Brian,

way to First everyone we're think that to actually of moving and piece. over, the advantage advertisers remind our of I so over formats campaigns then middle, can on. was That's take ad which the is perspective, that's is our where of we're set. data manager we all, heavily our kind your and ad quite management where then front take of from know ad our right now the full And proprietary platform question I in end, more just the self-serve There I'm if we it of clearly on of work end, to visualize one with it the an do which going measurement way is parties third API group side. out is ad parties. to how cost ultimately and back third now is don't focused ad on And campaign

do with terms of generally showing outcomes some work So we so to we've really and Nextdoor good from speaking, able Oracle, and outperform advertisers can in that where on show been Foursquare benchmarks. where Lucid, that's

of ultimately about website. gave example, grocer we in So of definitely Shipt, on the local about in for quarter, seen better some performance lead terms generation who's talked conversion the that examples we their and

off-line we've in of other to where about like Albertsons folks and can we seen ahead so have quarters, also behavior prior talked on, purchasing ability drive online our show well benchmarks. We to

help elements into that is which an show able we Nextdoor do insurance you study were to working through that able national truly were we understand overall to to lean our that we level. campaign the give again, how to lift were confidence unique. brandless a awareness company a Lucid, So I'll make that were them it's ran example, we that other XX% the seeing of to a effectiveness with of the solutions recognition doing and almost brand one brand it they

measurement. homework" own are Nextdoor a shift where that that our a very from and "grading showing very to platform is unique performant these utilizing platform, ways So third-party we away

want The platform. could imagine programmatic very more be differentiated also over them ourselves, but forward available where we our APIs going us don't other And maybe Maybe might working build use places supply, other of you we ad as on time to we'll them have with for forms formats. well.

stack, glad sophisticated the was the second So of there part people asked and I be who today that, will scale And don't of development I'm channel your mean the sorry, tends often you definitely to question, into sorry, a of benefit was advertisers. measurement actually, question by that a make and that. most it core that part more of ad because the is on of get

yesterday, see give back to enterprises, performance talking that I a call to forth degree, then had them. talk my can that So place orders too, and was some said, They know one go definitely right? and SMBs post working to driven fact in number there's her SMBs, them, agencies last mid-market. a with of had to When just inherently week. the larger for That there to want for I she the people about and just a next

see kind small, businesses is The help way. to in performance sophisticated but now more easy of it So and package a way, how Nextdoor. take understand question them also do inherent a there's that that on this an understand of we kind and in small

them to talked about easier of insights. And so SMBs giving ad with last just recall, our some done the shift not click the not give on to but platform, I quarter, be think just formats, faster ads you if finally start these to we offering also Nextdoor we've

So a they other don't insight. quite them give lot of sophisticated platforms frankly,

going their is their that buy for So from that can we always we're them or buy store -- but the is them into to services come that them neighbors leads the giving the or are whatever, key. key prove

more connect the can to stock, seen we have that platform more the is as I so you to business. Nextdoor as more think And be local the going and be a on

Operator

at Instructions] [Operator time. questions There this no are waiting

the to So Nextdoor's Friar, over Sarah pass conference I'll CEO. back

Sarah Friar

joined and Thank questions. you, who Frances, your really appreciate Great. We you, the call. thank everyone,

on areas build in expectations to momentum a we continues to definitely work know QX While continue and revenue EBITDA very and on Nextdoor be to beat to that do our macro we have through delivered global we challenging. environment such as grow mid-market, the

platform. a Nextdoor unique is

over are the on local. said, we I call, and As over

not to drive others that. We We're to engagement. have organic-driven behove growth and

We high have incredibly neighbors have real audience. real really at We an addresses. intent

on focused So with what that laser can control. we we're

on the the awareness utility importance First, neighbors, really brand agencies, local sure demand. that of our neighborhood and Nextdoor customers and we the and beat make need equals building to that for businesses drum community in provide that everyone recognizes that

that focused to to that revenue I just also improvement while near-term like finally, AI continue things back three us we're initiatives, on Maps, to to that's sheet. our tiers the to growth capabilities of development ML, I a platform, platform and the want monetization iterate and the platform invest opportunity our things Nextdoor's to Vitality, And edge. in Faves in and place strength things like and seeing our we want think we of like we to leading EBITDA while then higher describing our was getting ad long-term afforded balance and margin Second, on you. third Connections, variability, course, investing continue of are And where by

three and thanks about care tuning months. now. with forward Take that, for So bye. so talking to we to in you in Bye, look today, much

Operator

you the concludes Call. XXXX Nextdoor Earnings That your participation. for QX Thank

now disconnect. You may

Nextdoor (KIND) 9 Nov 222022 Q3 Earnings call transcript