Nextdoor (NXDR) investor relations material

Strategic transformation and product evolution

• Leadership returned to drive a turnaround, focusing on product as the core value generator and shifting the company from episodic to daily engagement.

• A new management team was installed, and a new version of the platform launched in July, emphasizing discovery-centric daily use similar to leading social platforms.

• Third-party content integration began, starting with local publishers, to supplement neighbor-generated content and increase platform relevance.

• Five pillars for indispensable local engagement were identified: news/information, alerts, favorites, classifieds, and local groups, with current focus on the first three.

• AI is being embedded across the platform to prompt conversations, summarize content, and personalize user experiences.

AI integration and trust

• AI is positioned as essential for both internal efficiency and external product differentiation, leveraging 14 years of conversational data.

• Proprietary content and verified user identities underpin trust, with address verification and real-name policies preventing misinformation and bot activity.

• AI-driven features, such as Faves, are being expanded from vertical pilots to horizontal integration across the platform by year-end.

• The company’s approach to AI is necessity-driven, aiming to make it a core part of culture and survival.

Monetization and financial discipline

• Short-term revenue tactics like increased ad load and duplicate ads are being phased out in favor of durable, user-friendly revenue streams.

• Proprietary ad stack investments have led to improvements in self-serve advertising, CPMs, and ARPU, but engagement growth is seen as the main lever for revenue.

• Future monetization will expand beyond advertising to include service provider marketplaces and classifieds, with engagement as the primary driver.

• Capital allocation is guided by a scarcity mindset, prioritizing ROI and responsible growth, with a focus on quality of execution over headcount expansion.

• The company holds significant cash reserves and aims to shift from loss-making to break-even or profitable status, targeting responsible, sustainable growth.