Nextdoor (NXDR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 11% year-over-year to $63.3 million, driven by increased advertiser demand, user engagement, and product improvements, with weekly active users reaching 45.1 million.

• The 'Next' initiative aims for a complete platform transformation by mid-2025, focusing on user experience and long-term growth.

• Leadership changes include four new board members to support transformation and the founder's mentality.

• Net loss for Q2 2024 was $42.8 million, a 21% increase from Q2 2023, mainly due to restructuring and impairment charges.

• Productivity, measured by revenue per employee, improved over 50% year-over-year.

Financial highlights

• Q2 2024 revenue was $63.3 million, up 11% year-over-year, with self-serve advertisers contributing 49% of total revenue.

• Adjusted EBITDA loss for Q2 2024 was $6 million, a 23-point margin improvement year-over-year.

• Stock-based compensation expense for Q2 2024 was $16.2 million, down 25% year-over-year.

• Q2 net loss margin was (68)%, and adjusted EBITDA margin improved to (9)%.

• Gross margin for Q2 2024 was 84%.

Outlook and guidance

• Full-year 2024 revenue growth expected at approximately 10% year-over-year.

• Adjusted EBITDA margin improvement for 2024 now expected to approach 20 percentage points year-over-year.

• Q3 2024 revenue guidance is approximately $62 million, with an adjusted EBITDA loss of about $8 million.

• Positive free cash flow anticipated in Q4 2024.

• Management expects continued investment in R&D, sales, and marketing to support growth and platform enhancements.