Nextdoor (NXDR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 2% year-over-year to $54.2 million, driven by increased user engagement and a 6% rise in Weekly Active Users (WAU) to 46.1 million; Platform WAU rose 5% to 22.5 million.

• Net loss narrowed to $22 million (net margin -41%), a 22% improvement year-over-year, with adjusted EBITDA loss improving to $9.2 million (-17% margin).

• Operating expenses declined 8% year-over-year, with a greater mix allocated to R&D.

• The company prioritized product transformation with the launch of "Next," focusing on AI-driven local news, alerts, and recommendations to drive engagement and monetization.

• Share repurchases continued, with 4.7 million shares retired in Q1 2025.

Financial highlights

• Q1 2025 revenue was $54.2 million, up 2% year-over-year, with double-digit growth in all channels except large advertisers.

• Net loss for Q1 was $22 million (-41% margin), improved by 13 percentage points year-over-year.

• Adjusted EBITDA loss was $9.2 million (-17% margin), a 9 percentage point improvement year-over-year.

• Operating expenses decreased 8% to $81.2 million, mainly from lower sales and marketing and G&A costs.

• Cash, cash equivalents, and marketable securities totaled $418 million at quarter end, with positive operating cash flow.

Outlook and guidance

• Q2 2025 revenue expected to be approximately $60 million, with an adjusted EBITDA loss of about $10 million.

• Full rollout of Next to all US users targeted by end of July 2025, with deeper engagement and improved monetization anticipated.

• Programmatic ad buying to be enabled later in the year, expected to support a return to revenue growth.

• Q2 operating expenses expected to remain approximately flat year-over-year.

• Management anticipates ongoing operating losses and cash outflows in the near term but believes current liquidity is sufficient.