Nextdoor's Q1 2025: Contradictions Unveiled in User Growth, Content Integration, and Advertiser Strategies

Focus on user growth vs. engagement, integration of local publisher content, strategic shift in advertiser acquisition are the key contradictions discussed in Nextdoor's latest 2025Q1 earnings call.



Weekly Active Users and Revenue Growth:
- Nextdoor Holdings reported a 6% year-over-year increase in weekly active users (WAU) to 46.1 million, with revenue rising 2% year-over-year to $54 million.
- The growth in WAU was driven by steady new user acquisition, while revenue growth was supported by improved ad platform leverage despite reduced large advertiser spending.

Platform WAU Transition:
- Nextdoor will transition to platform WAU as the primary user metric, aligning with consumer expectations and strategic focus.
- This aligns with the shift towards in-app experiences, richer content, and monetization opportunities that NEXT will bring.

NEXT Platform Launch:
- NEXT, the new product initiative, is expected to launch to all U.S. users by late July.
- The launch aims to enhance user engagement through features like local news integration, alerts, and AI-driven recommendations, ultimately driving monetization growth.

Ad Platform Enhancements:
- The Nextdoor Ads platform serves 100% of U.S. large advertisers, with an approximately 50% improvement in click-through rate noted.
- This is attributed to improved user targeting, reduced cost per click, and increased adoption of self-serve advertising tools.

Profitability Improvement:
- The company achieved a 13 percentage point year-over-year improvement in net loss margin and a 9 percentage point improvement in adjusted EBITDA margin.
- This was driven by improved team productivity, efficient marketing spend, and reduced hosting costs.