Nextdoor (NXDR) Morgan Stanley Technology, Media & Telecom Conference summary

Leadership and cultural transformation

• Leadership change initiated a year ago focused on deep cultural and operational shifts, emphasizing that culture is the foundation for sustainable results.

• Reinvention required a complete product transformation, not just incremental improvements, to deliver greater user value and engagement.

• Execution improvements included tighter budget management and delivering on public commitments, while preparing for a major platform switchover.

• The company is now transitioning from maintaining the legacy platform to fully focusing on the new vision, called Next.

• The transformation is expected to introduce uncertainty but is seen as essential for long-term growth.

Product vision and user experience

• Next is built around three core pillars: news, alerts, and recommendations, addressing fundamental user needs identified since inception.

• The new product aims to provide a more robust local news experience by integrating content from both neighbors and professional sources.

• Alerts will be prioritized and surfaced more effectively, especially during critical events, to drive user action.

• Recommendations will leverage 14 years of proprietary content, using AI and ML to surface relevant information and create a unique local AI agent.

• The transformation is being tested in six markets, with early qualitative and quantitative feedback showing increased engagement, especially among less frequent users.

Advertiser strategy and monetization

• A modernized user experience is expected to attract younger users and provide advertisers with more engaging surfaces and deeper audience engagement.

• New advertising surfaces will include structured placements in news, alerts, and recommendations, moving beyond traditional feed and search ads.

• The platform transformation is expected to expand opportunities for both existing and new advertisers, especially in verticals like home services and tech.

• AI and ML will enhance ad targeting, performance, and ease of use, including self-serve tools and programmatic buying options.

• The company is prioritizing engineering resources for the Next transformation, with programmatic integration planned post-launch.