KIND - Earnings call transcript Q3 2024

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Operator

Good afternoon. Thank you for attending today's Nextdoor Q3 2024 Earnings Call. My name is Cole, and I'll be the moderator for today's call. [Operator Instructions]

I'd now like to hand it over to John Williams, Head of Investor Relations. ahead. go Please

John Williams

on I'm Financial Good operator. to Williams, of and With Head Nextdoor's Tolia, are Thank Executive Chief and John thank Relations. Officer; us results. financial afternoon, quarter Anderson, us call you Investor today third Nirav Chief you, Matt XXXX T. the Officer. for review joining

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

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

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

discussed of financial their conference measures letter financial today's call. on released non-GAAP be today. can measures directly reconciliation A QX most in found will XXXX Additionally, the shareholder to measures comparable be these GAAP

turn like Nirav. With the to call over that, I'd to

Nirav Tolia

revenue enormous amount QX remaining growth growth, milestone a stronger said, business, our you, and as as this solid quarter our we Good John I'm discuss work everyone. to result. XXXX here done We're there's energized a of X has Thank team efficiency. our we're with to to in operational today on improved financial focus afternoon, be results CEO an progress, a returned and ahead. strategy a the outlook. Since you ago, I happy around long T. by and and third was That road months user journey to but lot

revenue adjusted reflect results do WAU, we We reached improved mentioned margin the year-over-year. million, year-over-year EBITDA and XX% but as active increased and business. year-over-year, Revenue our evolve employee today of more, users, scale I and can XX% XX reflects by certainly $XX growth points productivity. and million grew percentage Weekly up the progress or XX.X

to significant months. X like I'd view, made highlight higher-level in where recent a we areas the Taking strides

Advertisers In clearly The first one retention. saw which performance, Platform is Nextdoor QX, this revenue Ads which revenue benefiting our improved driving continued we is driving mid-market better self-serve most are from scale. in using to channel, the growth.

feature. product and optimization, the relevant, see Click improves these is advertiser machine rates with of reduction engaging are our learning cost ad XX% this our in also types click-through relationships more which and XX% improvement monetization but here and an not performance sustainable ad only growth. much make that per using for exciting QX, potential strengthen click advertisers confident improved In leveraging driving and by We of today. optimization campaigns a content drove improvements increase drive on platform in click to

is improving improved culture. sustainable building again second operational disciplined in Achieving and this and is on The operational behind discipline. progress. QX, we a growth made key driver area requires The focus resources, winning allocation our execution of financial

execution, value. The acting of and like companies. successfully as to owner A mature not mentality star future dueling here. provenance innovation an founder's developing the use our benefits of upstart founder's We continue of best value combines north the are mentality attributes delivering startups. a then solely The blend ongoing while with companies simultaneously

of the NEXT Neighbors we the bar means our do. as in inventions the product everywhere. lives and operating as initiative, everything to possible Develop such that and effectively transform our enrich effort longer-term means Deliver as raising continually

for Nextdoor initiative essential to transforming me the final brings product NEXT. as network local previously, And with the ambitious to is and NEXT That our shared third I've communities. area, make our

where need or users key from visit interactions with discovery-centric interactions intent-centric focus the where and to a to our users broadening come simply pillars timely of of Nextdoor discover specific relevant One include NEXT content. is goal

little into me more. Let bit this dig a

cases, today intent-centric deliver optimized a use lost essential plumber, a to our cases finding value. and touch are like dog locating These intent-centric or Neighbors hurricane trusted use pressing during needs for unquestionably wildfire. a Nextdoor or is keeping in

Yet great use we pair than Discovery need. value believe value a additive a platform with when a simply specific to visits occurs opportunity there frequently intent to of a rather is informed the existing the discovery-centric of cases. for user stay

content, opportunity of deeper engagement say us our made why they discovery to is initial users for drive local to bringing presenting fact, information to local to by new focus XX% clear Nextdoor want use This of Nextdoor. In we've the relevant discover even NEXT. a sources of

multiphase a a look we path. as product-related is meaningful mind, keeping the along until forward see mid-XXXX, we're With be but don't we're way. to and updated track expect that nor will work linear in that on of innovation optimistic predictable to neither Our the signs effort a right you progress

redesign will accelerate success mind, York UX has advertising experience. product big in hire and improved a that and he New extensive of on Georg yet. user us, are Times, This we're require have that Georg transformation efforts. A proven announce innovations Times, in former our note delighted we York to Nextdoor final Design as and oversaw the help consequential in Design to New Chief most the has Times for is Petschnigg, here dramatically With and subscriptions. Georg Transforming the at our experience to joined At excited Head NEXT. app Product Officer. a

and is early progress precision with performance reinvigorated the still renewed potential our challenging growth in deeply creation, revitalized a but are we We're days, a and developing realize we've of while delivering purpose I'm believe made, work, the prospects. the NEXT trajectory to value a operational platform, improving very proud we and executing for and in company. future It

over turn results. financial now I'll it our Matt discuss to to

Matt Anderson

Nirav, afternoon, you, and Thank good everyone.

of million, must year-over-year. of new Substantially an Neighbors but to joined increase XX% helped users, value In for year-over-year. WAU we of WAU growth all new NEXT. an Verified which joined QX millions Nextdoor. QX those QX, users organically, increasing area U.S. more drive have XX.X with deliver to a strong showed and solid be foundation continued of a We XX% strength, ambition

During the quarter, a on sustained progress growth user few reflected fronts.

we log before tended previously engaged logging Nextdoor to what and saw these to users in engage, the we experience to them in. Similar allowing users, aspects then inactive QX, First, platform. in explore of further

right to as we more ML to Neighbors, proximate at location personalized Second, using to the content continued This using right continues key deliver time. right our bring content the signal. the to user a efforts

real-time local our users. and short, source and safe users across information the informed when events storms Finally, help Nextdoor local In timely for content and notifications a critical affected for communities U.S. stay major remains

quarter. Platform monetization. and of in to turn, Ads driving financial ease in is which, for Nextdoor Moving advertisers improved results stronger use The better the performance drove

million monetization advertisers revenue for QX of continued momentum revenue activity. and year-over-year, grew with a advertisers, $XX reflecting search improved enterprise self-serve retention better across of XX% to growth return channels,

our improved further cohort particular channel, these This features. revenue revenue advertisers begun for performance saw increases self-serve Xx as a advertisers of to our strong and campaign improvement for Nextdoor. advertisers and gains Within advertiser driving adopt in net growth self-serve advertisers this Because performance. capabilities to total in Why? our year-over-year optimization opportunities points drove are has in retention. Mid-market click

our in users growth played come role with Nextdoor intent. commercial a to as high often revenue QX also Search

possible to history ad made Specifically, our spend an over on XXx data, Nextdoor return saw standard search on campaigns targeting compared for These foundation users our based first-party improvements, by durable campaigns. their growth. strengthen

EBITDA negative $X adjusted a loss QX or was million margin. X%

on improvement. a scale, the Nirav focus each Increasing personnel year-over-year XX improvement. percentage this revenue represented As lower costs, noted, a and hosting point efficiently to and data-related expenses margin year-over-year scaling contributed

measured improving employee, quarters. Productivity, X by in of increased by as revenue more than the XX% per each past year-over-year,

which sharp on growth We and operating customer-focused allocating both are means with efficiency. owner's resources an focus a mindset,

cash, capital ended We committed and in with marketable X securities QX cash and We $XXX allocation. disciplined million remain to equivalents debt.

invest profitability profile whether balance the us business, Our or give investments in strategically strong improving sheet repurchases. flexibility operating share through to and

quarter, the continuing fully we Year-to-date, limit share X shares. X% repurchased and count diluted by During focused we remain reduced have dilution. on to million our

and Now our guidance. on outlook to financial

of from implying XX-percentage-point year year-over-year noted million, XX $XXX expect EBITDA year-over-year, approaching the growth. the improvement last XX% We quarter. XXXX, For margin percentage points expect now up full revenue adjusted improvement we

drive at work. a to is operating ability leverage founder's Our mentality the reflection of further

expect $XX loss $X For generation. growth XX% and approximately adjusted and implying of we of EBITDA year-over-year million, cash flow QX, revenue free approximately million positive

free we flow operating reminder, minus a cash define flow expenditures. as As capital cash

guidance spending. our Additionally, home QX reflects natural related seasonality to services

back step from guidance. a taking Now our

growing We of base place ability deliver importantly, serve XXX NEXT conviction team. improving for we use already a both performance focused shareholders. are and and value advertisers driving to have discovery-focused and we Verified productive growth with users, to seeing our broadens intent- and today, Neighbors, million a advertisers Most that in cases what have nearly

turn now I'll Q&A. today. call the earnings to over our joining begin operator for Thanks it to

Operator

Citi. from first [Operator with Instructions] is Our question Sherman-Lewis Jamesmichael

Jamesmichael Sherman-Lewis

you Verified Neighbors balancing talk paid discovery-centric of U.S. about for market? how your against insight-based online little newer context retention/retrenchment strategies a as coming particularly use your first well these marketing in Can levers, cases your as towards bit the you're growth organic

free the second and hear as surface on as love services, and well the competitive goods the look to Nextdoor's I we And as sale in to then NEXT, Marketplace. versus of quarter Facebook for differentiation would your exchange thoughts updated

Nirav Tolia

questions, for the them. them And asked answer that just let the Thank Jamesmichael. you order you me in

and that or for user marketing time, over decreasing term our midterm. solely organic and that would don't So any are minimal mechanisms the we the I first, anticipate almost on change even focused near are the on say in so in paid we efforts acquisition,

generally, of really around focus And others with intent for NEXT, us will vibrant On and in vibrant our a about, phase aware of set and sale experiences a more and more will marketplaces obviously include expanding think include the was of the that make priorities an marketplaces the for in investment for certainly in is your term. doing we discovery. marketplace users. as next we sale second and to continue question Facebook near that to what free opportunity future more for the around us. set The And talked we are include is surface space. are NEXT, in and for for investing free NEXT. not we're progress as That surface that But

Matt Anderson

benefits, Mike, our Neighbors has our Neighbors, so think though, I'll just substantially, for That what on growth first P&L. also add you On as as about to of Nirav strategies thing noted. you organically, comment your mentioned. come on all one our

So XX year-over-year. of it It's of number we're things of as sales having. things percent function scale the continued of one that but a is at a revenue, the in things, a was QX, progress like and marketing points down signals

not it benefits health of but of just a it's So terms also of platform, has in numbers. downstream our the signal the operating

Operator

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

Nirav Tolia

call. the would are Thanks remarks. questions, Since love again more closing there for some for no make us joining I to today

I reinforce to and close, we're matter most are we about want we briefly and just things Before where recap today that where the going.

First, we're year-over-year; growth. QX. That XX% XX% We WAU revenue, grew driving year-over-year. was

improved Ads value Platform measurably advertisers. for and Nextdoor Our delivering performance is

we are EBITDA The and revenue second raised points doing more adjusted our point margin and outlook. We with adjusted year is QX, improvement in EBITDA year-over-year posted less. full we've of XX

the is a powerful to Number most importantly, We're proposition three, the our increase to and and value is combination. future widen going of which from intent focus Nextdoor. NEXT discovery,

take It's the to for to certainly ever potential strong It's local everywhere, ambition, innovation indispensable straightforward. been. progress payoff our time to because big. not it's application is as is show build but is the product Neighbors as going And linear, not

to very forward for Nextdoor, look again you you we with Thank again interest speaking your soon. in and

Operator

concludes today's for you participation. That your Thank call. all

You lines. may your disconnect now

Nextdoor (KIND) 6 Nov 242024 Q3 Earnings call transcript