Locally focused social-media firm Nextdoor posted fourth-quarter sales that topped expectations.
Cindy Ord/Getty Images for Nextdoor
Nextdoor posted better-than-expected results for the fourth quarter, as the locally focused social-media company inches closer to profitability.
For the quarter, Nextdoor (ticker: KIND) reported revenue of $59 million, up 48% from a year ago, and ahead of the Street consensus at $55.4 million. The company had a net loss in the quarter of $29 million, or 11 cents a share; as measured by adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization, the company lost $8 million. The company’s adjusted Ebitda margin was negative 13%, improving from negative 19% a year ago, and negative15% in the third quarter. The company said weekly average users grew 32% to 36 million, accelerating from 20% growth in the third quarter, and 5% growth in the second quarter.
For the first quarter, the company sees revenue of $48 million, about in line with the Street consensus, with an adjusted Ebitda loss of $23 million. For all of 2022, Nextdoor now sees revenue in the range from $254 million to $256 million, up from a previous forecast of $252 million. The company repeated its forecast for a full-year adjusted Ebitda margin of negative 18%.
“More than ever, in Q4, neighbors used Nextdoor to connect to the neighborhoods that matter to them,” the company said in a letter to shareholders. “Neighbors are eager to return to restaurants. They’re ready to spend again, increasingly with closer-to-home and convenience in mind. They’re engaging in more neighborhood get-togethers, and interests in activities outside the home, including sports, are making a comeback. Whether neighbors are spending more time at home, or finding their new sense of normal outside the home, neighbors have increasingly turned to Nextdoor to connect with each other and everything nearby, bringing neighborhoods closer together and creating a kinder world.”
CEO Sarah Friar said in a call with reporters that the company had “an incredibly strong year,” including completion of a merger with a special-purpose acquisition company that supplied Nextdoor with more than $700 million in cash. She declined to say when the company might break even on an adjusted Ebitda basis, noting that the company expects to keep investing in the business.
Nextdoor stock has come under selling pressure as tech-stock multiples have contracted. Shares, which closed at $13.01 on their first day after completion of the SPAC deal, ended Tuesday’s regular season at $6.24, down a fraction. In late trading Tuesday, the stock has slipped a few pennies to $6.19.
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