KIND - Earnings call 3 2023 | Nextdoor Holdings, Inc.

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Operator

Good afternoon. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Nextdoor's Third Quarter 2023 Earnings Conference Call. [Operator Instructions]You may now begin your conference.

Unknown Executive

Thank you, Jordan. T. John [ I'm of Head Investor ], Relations. Williams and Nextdoor's third afternoon thank you review to us joining quarter for Good XXXX results. financial Mike on Strategy.During and us, may Chief and laws. the today, Anderson, Doyle, business Officer; Matt are Officer; Chief to of this statements call, securities under With that federal Head Financial are related Sarah statements call make Executive Finance Friar, our we forward-looking performance. These statements of are not future guarantees to subject risks variety a are They and of uncertainties.

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

release.Additionally, For our refer and found on could financial today's that, SEC other release a website, in XXXX to material Sarah. important other our their well today.With be discussed earnings risks call over available A of of financial and as today's GAAP in discussion to of I'd and actual be comparable to like important will non-GAAP the measures these on as the factors factors reconciliation that section risks measures Investor can the filings QX most to discussed measures affect turn SEC's call. website the please Relations conference results, our Letter the in Shareholder directly

Sarah Friar

another have Nextdoor in John thrilled you, We're session QX progress and neighbors, depth. weekly on verified as revenue, of to T. team. the was we Thank delivered growth quarter of you year-over-year active users,

XX.X increased the years. and million on in added million to X% our coming quarter is over by globally.WAU those finding count bringing nearly Nextdoor more. and in are globally to organic last new XX% or approximately more we the quarter-end up platform, verified In history, X X.X XX year-over-year engaging neighbors QX, value neighbors neighbors million New our to any are than

budgets. using order advertiser quarter-after-quarter, differentiated reduced we of revenue QX ahead macroeconomic expected our with of would year. the end spending, to hard of downturn maintain recovery key strong environment high impacted advertisers has began continuing listed on to the our with of well were macro bridge team. our home-related materialized. XX% hasn't industry to driving on We the by this into fought challenging of sheet, this and the to 'XX challenges increasing over decline platform to growth we base we're peers. to up depth we the While a rebound and momentum XX% On of depth our engagement, slight new strong Nextdoor.Earlier years This a weigh that that quarter-to-date. a me decision seen sequential we neighbors reduction cost ignore year-over-year. continue the a includes it's when advertising engagement, driving impossible progress operate.Let in a of despite workforce budgets note to we've XX%. approximately that force X session verticals macro pleased strong approximately But announced to in that ago context. reduction we QX, a was needed seen important plan in for to headwinds with the that levels in we the generating have of the Starting tough increasingly by significant the particularly reduction we increasing and in saw one make, how NYSE, share growth, on are In belief change by but yet to scaled some our today, decided we Nextdoor.We face year, this advertiser recover keep This but employee we balance begin categories

our First cash areas maintains in gears profitability. to balance and our with expenses discuss rightsizes accelerates better let's our of allows and It us our mean expectations. new adapt aligns lens.Now XXXX. realities a our our investments it market the Nextdoor's shift workforce other and must It thoughtfully long-term continue growth to for deploy flow ad and and tech such ensuring sheet to with and foremost, to does work continue to by strong and our invest key priorities, capital with the including end our align very the free stack.What near-term and path business our revenue as that of we the on revenue this So highest drivers we breakeven focus business?

strategy. First, to organically scaling coming as driven neighbors. accelerated in new channels was a quarter-over-quarter.This number new XX% of This the the QX large of by base digital grow part we platform was continued our our neighbors verified highlight invite to

finding previously more drives also are more and invitations.Second, hence email-based verify visit to more in growth deliver and local neighbors. sustained better-performing are unverified content significant We they neighbors neighbor engaging as made relevant efforts personalized we which ad value to Neighbors and delivering Nextdoor, impressions.

impression earlier, our how mentioned AI at year-over-year, Nextdoor opportunities ad approximately user-generated ad improve entirely each way the during graph local helps relevance timeliness by XX% AI engage not in depth, content consumption drive creation. using I grew loads.We session, session and with notifications, seeing using whether acceleration of may engagement and of real AI the content, an often react, increases number content knowledge a are increased neighbors drive content, very to each to driven how or during in user relevant As today also and increase We're comment personalize it's local or and us invitations, session.

helping of and suggestion-acceptance in The owners advertisers Assistant campaign; to the the we pacing delivering performance deliver ads areas: over neighbors accelerated the efforts. customer for for with advertiser has U.S. the company. advertiser of revenue Post served is revenue In helping the our delivered for server in immediate growth. Server, their day drove built X fosters course growth from required first, results. that suggests post It's methods ad later favorable engagement, Nextdoor reducing the delivering we capability we increasing via better roughly of transformative foundation SMB Nextdoor key improved can this components positivity were QX, performance sophisticated for XXX% and July, core and optimization, ARPU we through the promote begin SMP advertiser Ad we QX, more and whether in business delivered we value rate.Third, contents find the yields. the services, service are or Assistant ads so Post QX.In it's and saw a Our community that Starting course which experimenting second, XX%

to substantially end Our prepares QX demand Ads Ad all Nextdoor the in on also QX. serve us of by Manager work the Nextdoor Server

evolved we Ads of From subset first already WAU. some effect adapting to customers.In a of user the near-term Given encountered a of serves and negative our are as midmarket an strategy also midmarket a had experience our and advertisers using on improve efforts Nextdoor long-term the the are this improving. Manager, QX, perspective, challenges phase neighbor effectively notification migration through

orientation saw improve timeliness, While is This and and targeting did the desired of these the and for cash momentum demand seeking end Manager for to customers. XXXX.Before represent we on and least proximity, over clear flow believe those Nextdoor among ad we coming notifications, reach on persist step accelerate to for aim growth Server; X; generation.To on more weighed get relevance his to to #X, our acknowledge improving offset quarters. more long-term seeking connection, local than want performance sustain muted our will cash deliver relevant I quarterly the Mike, progress in Nextdoor free Ad free these campaigns seeking and home-related Ads neighbors of for migration on of improved perspective, the benefits introduction July, seeking changes path growth path short-term with neither will high changes squarely through significant trends to campaigns turning with flow ROI, and higher strength particularly strength the by ads exposure activations delivery the advertisers those in international of we generation saw ads video the community enterprise a and impact or and deliberate yield in local to and believe brand #X, performance Nextdoor of long-term user and through business.And August advertiser with and performance We reflects the Ad we NYSE and at content near-term to: add neighbors on retention.From as has QX inventory trajectory our the our demand the our levels Mike September. XXXX; spending, lead years multiple advertisers time, a performance Weaker to likely nor certainly our that to In the public function. XXXX verified with much from QX Nextdoor we timely momentum an X-plus enterprise excellent built our ultimately tools the for in shareholders led to reduce and uneven that the and an of negativity, the of of there, trends offering CFO. including compared that among and drivers breakeven XXXX, finance Server U.S. over SMB rounds contributions WAU, improved in unique of coming focus sustained of for formats funding, advertisers, mind,

all CFO be be and as always that While his am on Mike a is he stepping I will transition. is December Xst effective with for to today, assist grateful enormously through partnership Matt we as and and wish next I'm talented deep Difficulty] introduce Nextdoor in today. his what in very And the Anderson it and making endeavors.[Technical happy him future Nextdoor's to the CFO. he we down staying will are the contributions grateful bench, neighbor, best

valuable, Board finance, strategy bringing we to role of the as the of October, have Strategy with [ Mike. know, finance Risk Evan And thrilled numerous since Dana I'll Nextdoor's has the and the that on turn Chair ]. Matt terrific also finance our made at years our our joined Relations X team.So was as that, I a CFO.Earlier he Committee. great as be Audit Matt our you welcomed expertise to As I function. over and and Board he record the leadership and perspective many public to in Investor Directors. to be Her in XXXX. closely the will operations, a Slack when valuable time, in served over CFO and privilege to of I'm contributions has during enormously has Finance leadership the and Head with Dana in that leader and of on company working Matt a and I including is experience leading to He Nextdoor it his Board of CFO proven nearly organization know Her track strong are had

Michael Doyle

has and you, support despite in our customers the year-over-year revenue performed solid X% the grew period. demonstrated yielding QX, privilege that is trends XXXX, team mid-market Matt filed while saw transition revenue businesses ago. for Thank we and X what new I've a respect platform.Enterprise excellent business, ability our of for by the indicator over Matt during account and him well, back reflecting earlier deep team audience and and he'll in QX, leader, and growth reach It's I'm tremendously of grew emerged Server the of of and remains SMBs a I results. worked that which the goals.Before to Sarah words. finance and, and our And per of mixed mentioned, QX immense to confident or transition.Turning align be years of the early business spend am accomplished.Our Ads was of Nextdoor for has to XX% strategic are advertiser QX broader opportunities an to proud Nextdoor's those hiring medium-sized revenue to strong, as awareness XX-Q Sarah, note we've I since We well signed year-over-year, ahead. a areas Matt today enterprise growth long-term the my member CFO. positioned acceleration be on as with financially I understanding encouraged quarter been sustained that I've advertiser ensure a a closely international function Nextdoor uneven was ad revenue smooth progressed. and demand as encouraging be demand the company weighed is logo and since staying Nextdoor will discuss small the $XX see kind I to several these Nextdoor's sequential results, average growth, the our as to have million to declined

neighbor feed a was was Regarding and year-over-year drove operating offset offset who margin. expense key and outpaced margins which select specific negative $XX of within EBITDA versus revenue rebound declined decline were telecom, million, CPMs a U.S. year-ago Nextdoor.QX the by for technology verticals, and as year-over-year sales spend.Our of total rate growth and of equivalents, reflecting news X% loss, QX from acquisition relatively delivered.QX a EBITDA The adjusted representing quarter a yet monetize smaller and more made and securities and a R&D we sustained are not was $X.XX meaningful lower cash healthcare, X% real no in growth part ended expense of burn million impression and main slowed, up million though share of financial again period. $XX benefit retail the higher debt. seen services growth saw loss $XXX ad ad interest income. spend operating in XX% hiring advertisers direct-sold cash in has by for ARPU home impressions we've drivers growth estate, marketable We efficient cash, our another than better a the adjusted teams, of year-over-year, resilience the at in quarter with in Non-GAAP services

position.With allocation to cash that, our evaluate to always, opportunities our and Matt. turn will As judiciously manage over I'll continue it we capital

Matt Anderson

thank Mike. it's you a Nextdoor. pleasure to announced for all and and to kind reduction you we about want the that the today. let's you partner appreciate the words really financial earlier years. Sarah. excited step you've into opportunity the And role.Now, the last been cost this Thanks, done into I outlook from I'm learn get from incredibly both to I to And plan say X-plus and over for

noted, performance ahead. on is in year squarely As Sarah the our focus

XXXX.As in to said the cash increase targeting will focus growth efficiency quarterly year.We current earlier, range initially we GAAP expenses between for now revenue of materialized Sarah $XXX of by a QX end the a and up million expected QX slightly a acceleration accelerate actions, growth between We $XX annually. date. the expect are and million, while reduction free on range has in million These breakeven $XX personnel and to to We and full revenue path million flow difficult, our not revenue higher implies year-over-year XXXX $XXX flat $XX the XXXX which to in XXXX a million, loss organic depth are expect a impact to our and other $XX currently verticals with between there between important of $XX $XX a $XX QX neighbor million range many adjusted growth cost onetime was Across reduction have been $XX and range EBITDA costs This severance million. million adjusted approximately and note, plan growth related onetime in plan. the estimate One related in we a excludes expenses EBITDA and million. that measures, cost loss our associated momentum reduction implies which continue.Even advertiser an and be Nextdoor's where will pressured, verified environment engagement accelerating. in million

continued to I'll earnings platform positive for QX. making our turn are in results XXXX, to progress growing And revenue.Thank look some transitioning With over ad you on that, joining we in operator call focused remain early well Q&A. and to for our we the as We proprietary it out today.

Operator

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

Mark Stephen Mahaney

X questions, please.

when you generation, to always secondly, with to there made content then, aside there what's their greater the the are recent a at whatever amplification, know leaving First, but going in market from talk on of advertisers that's high the for that's has been I soft, the you negative in get in commit the biggest negative the is to past?And as content, cyclically aggressively unwillingness -- challenge that to company, the Nextdoor that? Sarah, something advertisers, platform? change advertising been a verticals an push-back terms of level,

Sarah Friar

particular about right neighbor in the right how then content and getting time. to the right WAU, on start the me let So we're thinking at

X% to saw evolving efforts put notification due but clearly million, to so improve in WAU, with experience, sequentially. that user we was the strategies. $XX.X you X% This down our So, place really our grew long-term year-over-year, was

the reflect QX, is notification sent often because a call certain platform, it's user area use perception when And the what tend that about come kind on, we notification an took really but crime high there around segments off concerned to we because there. but to negative the you to notification, a notifications kind timeliness, in of who to improve come and do align notifications, we've to know, of facie, the the that in people and certain of it's of change, addition platform.So time, to make perception wanted reduce algorithm neighbors organically over the deliberate a prima get them.In sure clearly an make with better which neighbors we relevance of content content, proximity, reduce very also to you we particularly step to QX high click user cadre and will negativity, a effectively As and reduction of sustain platform our on long-term engagement of the of we retention. levels safety drives on

little we're that confident will As we one very Verified can QX? just didn't XX% a over but sequential over that timeframe, but WAU, period, changes, of in Number I a neighbors. we in lift that they it's outcome see why a at ], we them have neighbors time any we it's better.As even look joining Clearly, really do advertisers. see go platform. weekly over retention it second tiered fact but the saw WAU The verified degree forward, saw definitely we that, again? is we you you become question, actually whether XX%, think we know, to actually new slightly than Why channels.On higher haven't to seen in grow? grow why with know do will high already we neighbors market other engaging, we around your take [ ask but levels X-year a

consistently commit look budget? advertiser biggest Overall, advertiser you maintaining we happening base. of terms the push-back what's So in if to retention, to them at on what's get our more are

are they Nextdoor, leaving continuing not are advertisers is, news to good the So, spend.

now, verticals where have we that spending do exposure. we see is less particularly what the right most are they in However,

verticals, are number the you, they added. that if clearly know I services, So, endemic have new look logos we financial I X services home very fact, those QX, and highest but think Nextdoor platform.In surprise won't I of the to at

as also we how So as we self-serve. of come for those outcomes.And our positive we to the second We've advertisers, hard platform they and we as in studies able point, seen new out course, awareness, better on been of and about we on working up good about a kind as group really stack, advertisers have us. go better then, think to case broader various Nextdoor of hear ad and will are a seeing get tech build put particularly more brand advertisers

you today, across the also be new our server, care So whether traction and side. more done lot of spend our platform, it's you new about deeply to getting we who single when now can every budgets there, net clearly from self-serve really that with really pent-up more, we We've advertisers reasons demand back a of look come can should lot get, Nextdoor performance see net-net, but out, lot of then but own we then, on ad advertisers on a period. can do ability more.So adding the proprietary know but keep a work us excited to to advertisers should are their release the course, as

spending So, it as ideally we optimism and room quarter as QX in been of into with bit the we little look also into QX, backdrop lot out out coming a tough XXXX, a but tailwind look ad too. see of of a certainly has we for

Operator

Sheridan of Goldman from comes next question Eric Sachs. Our

Eric Sheridan

Matt, everything. on congrats thanks it. new I've for wishing the you years. the all First, role the success over enjoyed in and And Mike, insights

Mark's So, advertising. just on on follow-up if I could question

to growth XXXX backdrop of about category headwind sort is more for and/or better clearly of what revenue around lot ads the to and understand is, or Is mid-sized a sort so rate recovering I thinking we think growth a what tailwind from either to we trends, about trying momentum in can that discern advertisers the there SMB to a underspend of better is terms are of in in versus think exiting you XXXX? momentum from way the discern normalized the manager. what have call

Sarah Friar

Yes.

say, Nextdoor year-over-year. I is on in I SMB.I'll because So, revenue that SMB perspective. to clients, areas, actually of room trying enterprises, quarter, choose base front stack more performance Maybe now to the do with they highlight our on the group the for the proprietary see get through clearly, side, start is X what backend, that's self-serve moved our SMB split was today. we're ad lot grew overall why mean, also we that right on so server But optimism. this can particularly they end our a and the larger not for And They on what is then call an into midmarket happy I'd Servers was to Ad a real is the if XX% important NAM. the the to revenue on about we from

any actually most take the So side, the they is in mid-market group is are We our added are we do than and that done are period. the today advantage to coming. platform, you're target.On on able that of what more can optimize there we've once midmarket what which advertisers seeing new logos other in better we're

However, still come lot when they tech because what more still add that managed of features they the to a on platform they would Nextdoor. are needs we shifting towards are managed expect to our call

for But a the not board. it's motion.And side, look I tend there to verticals conversation. and that areas the budgets. we in retail of sort what I it's us services finally, get bit, the we of see pulling the just be generally are of the They're the in it, to about want professional been really what well budget the that and across well care, in you did more that telco enterprise stable. them to talk little they with a quarter, stayed headwind like a continued When like we budgets.When space their retracted do space home into really services it's back financial advertisers or we've did is tech larger verticals in number think So at health to services, so then, has self-serve us on them advertiser government, fairly

have scale. but very back right for budget us it So, just Nextdoor finding to of our their and their ability ramifications more they are has given clearly now, intention tight terms spend that they to to when come in for is,

Michael Doyle

X this I'll Eric, on what more Sarah add to thing highlighted. in

we about advertiser performance. is one of our ad stack, the core think As really focus

talked customers to we so, Server. quarter about last our And Nextdoor SMB moving Ad

momentum into double As of how even we the rate momentum at like click as significant we at we positive that of mentioned, of indicators some into that's see value, terms periods.When of and customers, an advertiser really utilization that area up we shows future set an look budget as in indicator as look of things revenue signs. retention for we

that see continue we of really the So where is to that we against vertical continue area noted. and some an to dynamics momentum, conviction, that have balancing Sarah we're

Operator

from comes question of next Fitzgerald Wells Fargo. Our Brian

Brian Fitzgerald

again, attracting effective over We those it. from had update different neighborhoods of how business-to-business to you content Matt. that you in really on the or quarter, consumption? we've you campaigns, years. platform, And do the you us benefits the Verizon and When the how the across weather.com can see all in penetration?And progress you quick ones is that generation an BBC, was or -- give think congrats, Mike, equal thank at are were like for the with appreciate about levels and initiatives, neighbor new question impacting us. this on one And help Axios second X with like then,

Sarah Friar

Yes.

also do in became how neighbors because really the top-of-funnel top XX% to as QX at in grow WAU, which we a our about of we our ratios up go if look big DAU, take we need WAU, the platform. said, me new such at order question WAU VN a back grow really feel funnel to we efforts, to on XX%. full to about because very look Let because focus you about to And for it's a about good us level

and growth the even is fourth of gets onto definitely come awareness, content channels, brand is partnership content there. finally of funnel.We as going as that that like in sharing, social and is just about, just which X new top So, paid neighbors shared bringing the own to SEO our grow that even four things paid invite, out ways, well and and asked you the piece at the from real other then

our do So, we to invites, others XX% of period neighbors in put it's investment week couple the where invested I'll because I organically.As in but our over of and drive way the this through that's already touched and million coming hub. our well our to awareness. it another invite Verified our and have most been where in seeing periods, on neighbor put question, one last own. in That's an that's we're we on the them. quarter-over-quarter.Because digital are we that to unpaid where growth so Today, And growth Those in can invite into year-over-year can text message acceleration included we've with about strategy. And people growth is use that or we're then someone's really a visitor that's in them big invite able for AI enticing create either brand a really more email Hub your XX% a generative well, actually to even address quarter. Nextdoor. our reinvigorating place match join almost be to digital strategy, we're to to or digital neighbor-to-neighbor in able contributing they invite as campaigns XXX% an It's as to that invites.Coming location of and place saw side the Neighbor a platform, are per inclined more we invitation,

have real we families families, place whole both where are almost a sides. work a likely brands in paid their to build advertisers, we case, Those motion do life.And want up. move, to also Blue the new of came unique Military more but a this do category and to offline Star neighbor life. can list to did with are component but in is So done like, in locally. with of that great it's online of neighbor Verizon a like very more do movers something are often order month things to win-win well are They Nextdoor that on they how Nextdoor, on something in meet are community they do core you And and Nextdoor a real again,

effective out are those vertical, selling they in there and do weeks localism, So something other And are That the campaigns second we much and BXB terms look. across who that Week lot full about on York but a example of verticals a in other in brand, the is out very unique force.In very building part of building in community, in tech back and at also few New very terms saw effective that which progress just that that for on. differentiated, so just brand question, awareness, of drive want telco this equally your even to initiatives. where other might team feels large spenders can of the growth is way was sales we Ad the the to

in that's out from a example. provide allows like when to about. Weather.com, someone going emergency both where a example, they Bing really returning for neighborhood it's something So, the it and sign that that find a content our neighbor to taken initiatives that's cares of we Weather net particularly surface differentiated weather coming Nextdoor to from very Microsoft, really be that come like up is those a examples potentially are that's other out take on as Axios, something And then a situations, neighbors are onto new what way great It's great either but WAU back when could moment, to in with can order others. more.With data hyperlocal clicks alerts into feels local a people's really information BBC, platform, unique us to as partner or

build we're website good that.So launched API, do -- that we continuing can to really just strategy. same with there that. our our be developer We and a so into the a others launched out so soft like that growth world, it's come of partner can part street So, X-way out API that

brand then it, Invite, we much yet, content of So we feel today. and But a days. grow. how smaller lever it's the awareness, third piece paid finally early about good very sharing, is

Operator

Youssef Squali Truist. comes question from next of Our

Robert Zeller

A Robert is questions. for This on Zeller Youssef. few

content that on this notifications -- And are as think the drove on highs, just curious occurred vicinity some it about neighbors you guide, previously just where materialize?And driver you all-time XQ you play that things was On you and user you the of engagement expect what the that what revenue last think international. And of curious quarter, out also reaches. is user if growth. expanding reaching the increasing I were called you a out organic I growth, session-depth how of didn't know, that then, talked I'm the enter I'm as

impact just user the engagement the doing notifications what of new might So, I'm with growth all. strategy of that around if curious at you're

Sarah Friar

then Lots can of I'll didn't quickly And on Matt materialize. great organic what out I there. QX, growth. I'll it their take to user did and finish about throw questions session to over talk depth.

and you're the differentiate in year-over-year. on user growth, to quarter between the the X, right and organic the So, both the grew international U.S. period then

the the from that benefiting is it's aside And monetization. the a give push was really most invites an want so on countries year-over-year. on been in focus strategy important into UK, things organic growth of that in continue the U.S. other remains the we really for in the work a but Europe, that in the side, to impact good, strategy, and do that revenue clearly long-term I like on. has get to as I of the today true international bigger to us Western someone felt It's our was highlight some U.S., a XXXX. in mature XX% outlining of lot a partnership now. a that growth we big around user U.S. grow have of is growing had market terms right like However, because from also Because the areas digital it's like That's Canada terms more QX incredibly most the previously, shout-out BBC.So, international

you So in of it's do I and terms to indication sell do continue can more we drive to if that, we QX Matt, there pass guidance? that add to that continue a it good users can WAU that.With

Matt Anderson

on Yes. with the question, depth touch I'll dynamics. Robert, that, session on regard close and your to

revenue QX components. the guide, to regards really a of is with first, couple So, it different

same our like you of That relative healthcare and CPM the that effects demand. continued dynamics. and prior home things we the a day, wasn't seen slowdowns prior first pressure already different areas momentum we've downstream to is, retail, offset starts to services, to on few a we to at periods expectations.Now, while verticals, has of in highlighted, in like continued those, near-term period. we financial started see at the quite see the direct-sold enough clearly areas like like in started of enterprise we've number The one And called more vertical pressures out with our -- time in QX, the but the on the end like highlighted have specifically, areas it services

the key advertiser our CPM inventory, so, highlighted. of And still impression ultimately end that quarter, number the CPM fourth to in to though, of peers back demand dynamics is a of is day share greater we growing levels those broader by continue of pressures met dynamics.Now, specifically industry-wide greater and At ad high was see lower on our a point, as significantly have which of meant -- retention. supply the the slightly this it X of top very comes which is, share

previously that still slightly so, very to and those than foundation ramp confidence a new new going there continue has on a that horizon time Sarah Unfortunately, And logos platform, to future solid we growth expanded be as is verticals for the what gives that indicated. growth. is over us added had longer

a continue about platform, understanding richer with types in also how we we and depth is ultimately, strategy. that a of then, to highlighting really of their That neighbors areas become in helping that dynamics in a that's QX app have engage continuation when growth substantial, more session a neighbor is notification function the into part QX.And how be content with important a regards picture notifications, frequency. the role is they of front.And how you to it's So different time revenue us have of Session saw of is to -- neighbors that better. that's and played dynamics, I This comes core mentioned engages different our engage referenced really the session on more XX% be the a personalized interact certainly to depth, is expect want how like and and AI on so also and it Sarah the quite and getting And we really relevant, where in content. notifications. something smarter make with

depth So our that's we conviction. where that's really continue a core session of been dynamics, area an to and have part

Operator

Instructions] of comes Stanley. from [Operator Brian next Our Nowak Morgan question

Chloe Currie

some offerings. for the that and bit the AI, for first, experience and particularly speak you contribute more expanding for of making a that SMB color you're hopefully ways the in what sort could changes Currie to sounds positive into guess, updates also user on year, platform, just the a of bit of Ads there, beyond the But This little for to you're and lot just current above experience what's on please of think areas you then, on advertisers. revenue curious to next Brian. both forward as the results.And drive tools momentum Nextdoor can is more It there's a I Manager? the going generative second, sort like and and and roadmap AI improve how on the traction advertiser

Sarah Friar

ad the taking start overall me on first tech stack. one Let the

Manager. interface you and So, ad about advertiser front-end the Ads is actual back-end, That's really and work an reducing Nextdoor where all to there create talk our people that's efforts.

now we've any size self-serve gotten of So, today, advertiser NAM. can an to where on

build roles things tooling, advertisers agency to ad tooling, with out audience their in releasing exclusions, permissions, other like multi-edit continue we user functionality pixel functionality partners.So creative addition, duplication, credit and that NAM. and larger features In and includes

long, of kind gets ads. and sizes. can to very better But are very, you single list So, we making is see make all of period to businesses every the it specific progress better for

Nextdoor mentioned, ad we're seeing SMB U.S. now all better demand, of XXX% distribution delivering we've Ad impressions. back-end, Server, and times, the as we're of loading faster On

revenue, So, right getting where want do more will overall, which year-over-year of make better those engagement. better that driving quarter.And retention also front ML the right sure is user, those places drive driving that's use then in in SMB are also course, the customers, to of that's ad AI then, XX% or course up content we to the of of

noting it app third-party platform, ad do our is integrations. worth that out also to first Beyond and continue we build

if And a the Verified Lucid, are of a and So, brand spending pixel important side, now majority we around pixel. to process side of example, felt ready we're have we better for like always neighbors. folks measurement for [ in example a the the increased our impression adopted of course, on customers Scripts IAS. now the remains see with Thesus like to But ]. for customer third-party in really side, and we always our they've our great measurement, Neustar, Moat social, in understand that Oracle, neighbor of of CPA-focused from that safety X who CPAs, first-party has is point the which optimize with integrating meaningful the own things have things advertisers, Foursquare, activity lower starting you're of live we Verified used year-over-year.On

the AI. around where we've locally.The question know person we Generative impression, verifying told they So, in of was terms live already it's real that you that a second

talked about that's acceptance going our active XXXx. about, little use post deeper model you on post in a We've XXx. if of example, just really it's AI -- lot fact, was you see for rate a of Post by in machine learning first as foremost, of -- here the experiments So, for experience overall. also That's since you're Post family to perform approximately models the about I or from in great core platform. Generative Assistant.So Nextdoor, on personnel photography, our a this such Assistant bit and a creates a product week, post increase increased a at we Nextdoor, improving you're jumps XX% about can you see looking look probably see AI. data business business successful because a so, the integral trained and and our has in trying for AI Nextdoor applications that they increased better that if number you to what will is know And XX% we notifications already against or on action experiences whether that the particular -- creating overall, into saying the of for around about suggestion.We're increased a more use want XXXX, were, And product recommendation, part post it's when a

our ad to seamless So, can make ensure forward, and I perfect people we do targeting world, terms user assist SEO other across needs.As within show and important ad across already for rather them.So keep good audiences to itself how real-time back Gen or their showing creation also with see markets a AI in data the but that look up way externally literally as help that vault. way and stays prioritizing our most more relevant. we drive create the to Nextdoor for I'm to can in. leverage being That's way AI And because give business page about to the within proprietary created an about them a really a to small advertisers up, ability out different their area they server highly sure know language help to it excited understand which we in effectively the mention a not velocity large I optimize Nextdoor's on, that's our better, probably businesses, either the leverage pages example, we really the them all a do is not summary, a Gen an are campaign. ideal community. proprietary It's already perspective. of based the performance about campaign show there we from to that data what also breadth at also that but put to investing that with we to did just AI in are and of is created we but almost models revenue, get saw customers, we've more place it In of their what think using want, so feels they for XXX,XXX it's we local those or businesses with, happening to to for on we what

Operator

further line-up. We in have questions the no

closing any turn So Friar the for I'd to to call Sarah like thoughts. back

Sarah Friar

WAU funnel quarter appreciate look When much, what in today. neighbors record up year-over-year so interest you always a key metrics. seeing Nextdoor.We of Thank we X% across dialing in lot of for number Nextdoor. environment, do growth. positively, like at operator. to X%, seeing I a verified Great. Thank you come growth and brought your a tough good at our levers and, driving user new revenue keep our up have felt of we support your We the in to stages feel all all

have well So, agency the whether with Matt about, like now we it's we VN if Faves, We verticals ground platform, talked expect services users highest $X.X XX% I claimed we range, see said, approve to organic top strength to know it estate, session-depth as folks funnel, the XX% bottom see continue we or of of to our where real in WAU if upselling engage, Neighborhood really we so for really do ever push number as business ratios fertile for is areas up added ad remain to the million pages, mid-funnel of performed international it's finserv, home where in funnel, did and from overtime, as them. advertising. a such year-over-year.We partnerships

really and everywhere. data for that us.As seeing unique local with graph revenue. we WAU area unfortunately neighborhoods important knowledge are label growing view high-intent of on we but of It's and So the really asset a the forward, laser-focused audience as just people look very moment.AI for not an Nextdoor. is it pent-up we at are real demand, with We own a

delivering organizations, really for of neighbors highlighting So continue and importance local. we to have value the that means

we and of capabilities to comes where in initiatives need AI iterating investing then our keep play to that's all platform advertisers to monetization that on keep finally, we need too. Second, to engagement, our growing keep sizes. And for

We're that, What our better in than we reduction neighbors opportunities our XXXX outcomes, to network. in building a much. add Analyst the your to we on very XXXX so and sure and drive get continue will be expense out platform order make generation.So this sure to efforts in in cash those going we to But that go that want performance. to appreciate neighborhood be follow-up improvement to margin in to did near-term time do on Call with past and 'XX? to unique this Ads you we're on deeper, that we with reduce that accelerate thank be little flow invest focused verified also advertiser more plan global I shy also afternoon. to hyper-local of don't long-term now, going are Nextdoor.Right the we Nextdoor but make very So, advertisers

Nextdoor (KIND) 7 Nov 232023 Q3 Earnings call transcript