Nextdoor Holdings, Inc. (NYSE:KIND) Q3 2023 Earnings Conference Call November 7, 2023 5:00 PM ET

Company Participants

John T. Williams – Head-Investor Relations

Sarah Friar – Chief Executive Officer

Mike Doyle – Chief Financial Officer

Matt Anderson – Head-Finance and Strategy

Conference Call Participants

Mark Mahaney – Evercore

Eric Sheridan – Goldman Sachs

Brian Fitzgerald – Wells Fargo

Robert Zeller – Truist

Operator

Good afternoon. My name is Jordan, and I’ll be your conference operator today. At this time, I’d like to welcome everyone to Nextdoor’s Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions]

You may now begin your conference.

John T. Williams

Thank you, Jordan. I’m John T. Williams, Head of Investor Relations. Good afternoon and thank you for joining us to review Nextdoor’s third quarter 2023 financial results. With us, on the call today, are Sarah Friar, Chief Executive Officer; Mike Doyle, Chief Financial Officer; and Matt Anderson, Head of Finance and Strategy.

During this call, we may make statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC’s website and in the Investor Relations section of our website, as well as the risks and other important factors discussed in today’s earnings release.

Additionally, non-GAAP financial measures will be discussed on today’s conference call. A reconciliation of these measures to their most directly comparable GAAP financial measures can be found in Q3 2023 Shareholder Letter release today.

With that, I’d like to turn the call over to Sarah.

Sarah Friar

Thank you, John T. We’re thrilled to have you on the team. Q3 was another quarter of progress of Nextdoor as we delivered year-over-year growth in revenue, verified neighbors, weekly active users, and session depth. New neighbors are finding value on the platform, and those coming to Nextdoor are engaging more. In Q3, we added more new organic verified neighbors than in any quarter in our history, bringing our quarter-end count to approximately 85 million neighbors globally.

WAU increased by 2.1 million or 6% year-over-year to 40.4 million globally and is up nearly 50% over the last three years. While we saw a slight sequential decline in Q3, we have seen a rebound quarter-to-date. On engagement, we’re pleased to note that we’ve seen strong momentum of session depth increasing approximately 30% year-over-year. But despite our strong progress driving new neighbors to the platform and increasing depth of engagement, it’s impossible to ignore the macro challenges that continue to weigh on the budgets and advertising verticals that are important for Nextdoor.