Nextdoor Holdings, Inc. (KIND) Bundle
A Brief History of Nextdoor Holdings, Inc.
Company Overview
Nextdoor Holdings, Inc. operates a neighborhood-based social media platform. As of September 30, 2024, the company was active in over 340,000 neighborhoods, reaching approximately 1 in 3 households in the United States.
Recent Financial Performance
For the three months ended September 30, 2024, Nextdoor reported:
- Revenue: $65.6 million, up 17% from $56.1 million in Q3 2023.
- Net Loss: $14.9 million, a decrease from $38.1 million in Q3 2023.
- Weekly Active Users (WAUs): 45.9 million, a 13% increase compared to 40.4 million in Q3 2023.
- Average Revenue per User (ARPU): $1.43, up from $1.39 in Q3 2023.
For the nine months ended September 30, 2024, the financial highlights included:
- Revenue: $182.0 million, up 12% from $162.8 million in the same period of 2023.
- Net Loss: $85.9 million, down from $107.2 million in 2023.
Cost Structure
Nextdoor's cost structure for Q3 2024 included:
- Cost of Revenue: $11.1 million, a 4% increase from $10.7 million in Q3 2023.
- Research and Development Expenses: $31.9 million, down 20% from $39.6 million in Q3 2023.
- Sales and Marketing Expenses: $26.2 million, down from $30.6 million in Q3 2023.
- General and Administrative Expenses: $17.2 million, a decrease from $19.5 million in Q3 2023.
Cash and Marketable Securities
As of September 30, 2024, Nextdoor had:
- Cash, Cash Equivalents, and Marketable Securities: $424.7 million.
- Accumulated Deficit: $851.96 million.
Stockholder Equity
As of September 30, 2024, the stockholders' equity was:
- Total Stockholders' Equity: $456.0 million.
- Class A Common Stock: 212.2 million shares issued and outstanding.
- Class B Common Stock: 164.9 million shares issued and outstanding.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $65.6 million | $56.1 million | 17% |
| Net Loss | $14.9 million | $38.1 million | 61% |
| WAUs | 45.9 million | 40.4 million | 13% |
| ARPU | $1.43 | $1.39 | 3% |
Future Outlook
Nextdoor projects continued investment in product development and marketing to enhance user engagement and revenue generation. The anticipated financial trajectory reflects ongoing operational adjustments aimed at profitability.
A Who Owns Nextdoor Holdings, Inc. (KIND)
Ownership Structure
As of 2024, Nextdoor Holdings, Inc. operates with a dual-class share structure, consisting of Class A and Class B common stock. The Class A common stock is publicly traded on the New York Stock Exchange under the ticker symbol KIND. The Class B shares are primarily held by insiders and early investors, providing them with enhanced voting rights.
Major Shareholders
The following table outlines the major shareholders of Nextdoor Holdings, Inc. as of November 4, 2024:
| Shareholder | Class A Shares Owned | Class B Shares Owned | Total Shares Owned | Percentage Ownership |
|---|---|---|---|---|
| Khosla Ventures | 0 | 27,198,000 | 27,198,000 | 12.5% |
| Nextdoor Co-Founder | 0 | 20,000,000 | 20,000,000 | 9.3% |
| Other Institutional Investors | 215,474,726 | 0 | 215,474,726 | 77.7% |
| Public Float | 215,474,726 | 0 | 215,474,726 | 77.7% |
Stock Performance
As of September 30, 2024, Nextdoor Holdings, Inc. reported the following financial metrics:
| Metric | Value |
|---|---|
| Class A Common Stock Price | $21 |
| Total Revenue (9 months) | $182.05 million |
| Net Loss (9 months) | $(85.94 million) |
| Market Capitalization | $1.5 billion |
Insider Transactions
Insider transactions have been a notable aspect of Nextdoor's ownership landscape. As of 2024, the company has seen various repurchase programs, with a total of $150 million authorized for share repurchases, aimed at enhancing shareholder value .
Share Repurchase Program
Nextdoor's share repurchase program was initially authorized on May 31, 2022, and was expanded in February 2024, allowing the company to buy back shares from the market. This program is intended to reduce the number of outstanding shares, thereby increasing the proportion of ownership for remaining shareholders .
Financial Overview
The financial health of Nextdoor as of September 30, 2024, is summarized in the following table:
| Financial Metric | Value |
|---|---|
| Cash and Cash Equivalents | $49.7 million |
| Marketable Securities | $375.05 million |
| Total Assets | $517.66 million |
| Total Liabilities | $61.62 million |
| Total Stockholders' Equity | $456.05 million |
Conclusion of Ownership Insights
Nextdoor Holdings, Inc. continues to operate under a dual-class structure, which consolidates voting power among key stakeholders, including founders and early investors. As of 2024, the company is navigating its growth trajectory while managing significant insider ownership and pursuing strategies to enhance shareholder value through repurchases and financial management.
Nextdoor Holdings, Inc. (KIND) Mission Statement
Nextdoor Holdings, Inc. aims to be the essential neighborhood network, connecting users, businesses, and public agencies to the neighborhoods that matter to them. The company leverages technology to cultivate a kinder world where everyone has a neighborhood they can rely on—both online and in the real world. As of September 30, 2024, Nextdoor operates in over 340,000 neighborhoods worldwide and reaches 1 in 3 households in the United States.
Financial Performance
For the three months ended September 30, 2024, Nextdoor reported:
- Revenue: $65.6 million, a 17% increase year-over-year from $56.1 million in Q3 2023.
- Net loss: $14.9 million, a decrease of 61% from $38.1 million in Q3 2023.
- Adjusted EBITDA loss: $1.3 million, down 93% from $19.8 million in Q3 2023.
Key Business Metrics
Nextdoor's key business metrics for the three months ended September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 | Growth |
|---|---|---|---|
| Weekly Active Users (WAUs) | 45.9 million | 40.4 million | 13% |
| Average Revenue Per User (ARPU) | $1.43 | $1.39 | 3% |
Operational Highlights
As of September 30, 2024, Nextdoor's cash, cash equivalents, and marketable securities totaled $424.7 million. The company has experienced significant growth in its user base, which is critical for its advertising revenue model.
Stockholder Equity
Nextdoor's stockholder equity as of September 30, 2024, is as follows:
| Category | Amount (in thousands) |
|---|---|
| Class A Common Stock | $21 |
| Class B Common Stock | $17 |
| Additional Paid-In Capital | $1,305,704 |
| Accumulated Other Comprehensive Income | $2,263 |
| Accumulated Deficit | ($851,960) |
| Total Stockholders’ Equity | $456,045 |
Future Outlook
Nextdoor continues to invest in technology and user engagement to enhance its platform and expand monetization efforts. The company anticipates ongoing investments in acquiring additional users and increasing engagement, which may lead to fluctuations in operating expenses and net losses in the near term.
As of September 30, 2024, the accumulated deficit stood at $851.9 million, reflecting the company's history of net losses since its inception. The focus remains on scaling operations and improving profitability through increased advertising revenue and user engagement.
How Nextdoor Holdings, Inc. (KIND) Works
Business Overview
Nextdoor Holdings, Inc. operates as a neighborhood-based social networking platform that connects users, local businesses, and public agencies. As of September 30, 2024, Nextdoor was present in more than 340,000 neighborhoods worldwide and reached 1 in 3 households in the United States.
Key Business Metrics
The following key business metrics provide insights into Nextdoor's operational performance:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Weekly Active Users (WAUs) | 45.9 million | 40.4 million | 13% |
| Average Revenue per User (ARPU) | $1.43 | $1.39 | 3% |
Financial Performance
Nextdoor's financial performance for the three and nine months ended September 30, 2024, is summarized below:
| Financial Metric | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change (%) |
|---|---|---|---|
| Revenue | 65,610 | 56,092 | 17% |
| Total Costs and Expenses | 86,387 | 100,468 | -14% |
| Net Loss | (14,898) | (38,116) | -61% |
| Adjusted EBITDA Loss | (1,300) | (19,800) | -93% |
Revenue Breakdown
Nextdoor generates revenue primarily through advertising. The revenue breakdown for the three months ended September 30, 2024, is as follows:
| Geography | Revenue ($ thousands) |
|---|---|
| United States | 63,343 |
| International | 2,267 |
| Total | 65,610 |
Operational Expenses
The operational expenses for the three months ended September 30, 2024, are detailed below:
| Expense Category | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Cost of Revenue | 11,129 | 10,723 |
| Research and Development | 31,897 | 39,649 |
| Sales and Marketing | 26,158 | 30,564 |
| General and Administrative | 17,203 | 19,532 |
Liquidity Position
As of September 30, 2024, Nextdoor's liquidity position is as follows:
| Metric | Amount ($ millions) |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | 424.7 |
| Accumulated Deficit | (851.96) |
Future Outlook
Nextdoor anticipates continued investment in user acquisition, engagement, and platform monetization, which may lead to ongoing operating losses in the near term.
How Nextdoor Holdings, Inc. (KIND) Makes Money
Revenue Generation Model
Nextdoor Holdings, Inc. generates revenue primarily through advertising on its platform. The company employs a variety of pricing models including Cost Per Mille (CPM), Cost Per Click (CPC), and fixed-fee arrangements. For the three months ended September 30, 2024, Nextdoor reported a revenue of $65.6 million, which represents a 17% increase compared to $56.1 million for the same period in 2023. For the nine months ended September 30, 2024, revenue totaled $182.0 million, up 12% from $162.8 million in 2023.
Average Revenue Per User (ARPU)
Nextdoor measures its monetization through Average Revenue Per Weekly Active User (ARPU), which for the three months ended September 30, 2024 was $1.43, a 3% increase from $1.39 in the same period of 2023. The growth in ARPU is attributed to increased advertiser spending and user engagement, with Weekly Active Users (WAUs) reaching 45.9 million, a 13% increase year-over-year.
| Period | Revenue (in millions) | ARPU | WAUs (in millions) |
|---|---|---|---|
| Q3 2024 | $65.6 | $1.43 | 45.9 |
| Q3 2023 | $56.1 | $1.39 | 40.4 |
| 9M 2024 | $182.0 | N/A | N/A |
| 9M 2023 | $162.8 | N/A | N/A |
Cost Structure
Nextdoor's cost structure includes several key components: cost of revenue, research and development, sales and marketing, and general and administrative expenses. For the three months ended September 30, 2024, total costs and expenses were $86.4 million, a decrease of 14% compared to $100.5 million in the same quarter of 2023. This was primarily driven by reduced sales and marketing costs.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Cost of Revenue | $11.1 | $10.7 |
| Research and Development | $31.9 | $39.6 |
| Sales and Marketing | $26.2 | $30.6 |
| General and Administrative | $17.2 | $19.5 |
Net Loss and Financial Health
For the three months ended September 30, 2024, Nextdoor reported a net loss of $14.9 million, a significant improvement from a net loss of $38.1 million in the same period in 2023. The nine-month net loss also decreased to $85.9 million from $107.2 million year-over-year. This demonstrates a focus on reducing operating losses while still investing in growth.
| Period | Net Loss (in millions) |
|---|---|
| Q3 2024 | $14.9 |
| Q3 2023 | $38.1 |
| 9M 2024 | $85.9 |
| 9M 2023 | $107.2 |
Cash Position
As of September 30, 2024, Nextdoor Holdings had cash, cash equivalents, and marketable securities of $424.7 million. This strong cash position supports the company's operational needs and future investments.
Market Environment and Challenges
The advertising market presents both opportunities and challenges for Nextdoor. Factors such as economic conditions, advertiser engagement, and competition can impact revenue generation. The company has to continuously adapt its strategies to retain and attract advertisers while managing costs effectively.
Nextdoor Holdings, Inc. (KIND) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Nextdoor Holdings, Inc. (KIND) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nextdoor Holdings, Inc. (KIND)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nextdoor Holdings, Inc. (KIND)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.