Nextdoor (NXDR) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw 17% year-over-year revenue growth to $66 million, with weekly active users rising 13% to 45.9 million and U.S. WAU up 16% year-over-year, reflecting improved user engagement and operational efficiency.

• Adjusted EBITDA margin improved by 33 percentage points year-over-year, with adjusted EBITDA loss narrowing to $1 million (negative 2% margin), and net loss for Q3 was $14.9 million, a 61% reduction year-over-year.

• Cash, cash equivalents, and marketable securities totaled $425 million at quarter-end, with no debt.

• The company completed a Q2 2024 restructuring, including workforce reduction and office space optimization, and launched the Next initiative to expand from intent-centric to discovery-centric use cases.

• Share repurchase program expanded, with 8 million shares repurchased in Q3 and 30 million year-to-date, reducing share count and demonstrating disciplined capital allocation.

Financial highlights

• Q3 2024 revenue was $66 million, up 17% year-over-year, with momentum from self-serve and enterprise advertisers, and improved monetization of search activity.

• Adjusted EBITDA loss for Q3 was $1 million (negative 2% margin), a 33 percentage point improvement year-over-year.

• Net loss for Q3 was $14.9 million, with a net loss margin of (23%).

• Revenue per employee increased by over 60% year-over-year, improving for four consecutive quarters.

• Operating expenses for Q3 2024 decreased 14% year-over-year to $86.4 million.

Outlook and guidance

• Full-year 2024 revenue expected at $245 million, implying 12% year-over-year growth.

• Adjusted EBITDA margin improvement for 2024 now expected to approach 25 percentage points year-over-year.

• Q4 2024 revenue guidance is $63 million (13% year-over-year growth), with an expected adjusted EBITDA loss of $2 million and positive free cash flow.

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

• Sufficient liquidity is expected to meet short-term requirements with $425 million in cash and marketable securities.