Nextdoor (KIND) 6 Nov 24 2024 Q3 Earnings call transcript
1min read In a recent earnings call, Nextdoor, the popular social networking platform, shared its financial results for Q3 2024. The call, led by CEO Nirav Tolia and CFO Matt Anderson, highlighted the company's progress and plans for the future, focusing on growth, operational efficiency, and the transformative NEXT initiative.
Improved Performance and Revenue Growth
Nextdoor reported a solid Q3 performance, with weekly active users (WAU) reaching 45.9 million, up 13% year-over-year. Revenue of $66 million grew by 17% year-over-year, reflecting improved performance and execution. The Nextdoor Ads Platform, in particular, showed strong growth, driven by better advertiser performance and revenue retention. The platform's mid-market self-serve channel saw notable success, with click optimization driving an 82% increase in click-through rates and a 16% reduction in cost per click for campaigns using the feature.
Operational Discipline and Efficiency
Nextdoor has been focusing on improving operational discipline, with a focus on building a winning culture. This approach, which combines a founder's mentality with ongoing value delivery and future development, has led to financial and operational progress. The company's focus on delivering value and developing future value is evident in its financial performance, with a 33 percentage point year-over-year margin improvement in Q3.
The Future with NEXT
The transformative NEXT initiative is a key part of Nextdoor's strategy for the future. This ambitious project aims to make Nextdoor the essential network for local communities by broadening the focus from intent-centric interactions to discovery-centric interactions. The initial focus is on discovery, with the expectation of seeing meaningful product progress by mid-2025. To drive this transformation, Nextdoor has brought on Georg Petschnigg, former Head of Product Design at the New York Times, as Chief Design Officer. Petschnigg's expertise in UX transformation and advertising innovations is expected to accelerate Nextdoor's efforts.
Financial Outlook and Guidance
For the full year 2024, Nextdoor expects revenue of $245 million, implying 12% year-over-year growth. The company also anticipates an adjusted EBITDA margin improvement approaching 25 percentage points year-over-year. This optimistic outlook is a testament to Nextdoor's commitment to driving growth and operational efficiency.
A Look Ahead
The earnings call provided a clear picture of Nextdoor's current financial health and future plans. The company's focus on growth, operational efficiency, and the transformative NEXT initiative positions it well for the future. As Nextdoor continues to innovate and evolve, it will be interesting to see how it navigates the competitive landscape and capitalizes on the opportunities presented by its user base and the local community market.
In conclusion, Nextdoor's Q3 2024 earnings call painted a positive picture of the company's current performance and future prospects. With a focus on growth, operational efficiency, and the transformative NEXT initiative, Nextdoor is well-positioned to continue delivering value for its users, advertisers, and shareholders.