Nextdoor Holdings, Inc. (NYSE:KIND) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET

Company Participants

Matt Anderson - Head of Investor Relations

Sarah Friar - Chief Executive Officer

Michael Doyle - Chief Financial Officer

Conference Call Participants

Eric Sheridan - Goldman Sachs

Robert Zeller - Truist Securities

Jocelyn Hung - Evercore ISI

Operator

Good afternoon, and thank you for attending today's Nextdoor Q1 2023 Earnings Call. My name is Jason, and I'll be the moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to our host, Matt Anderson, Head of Investor Relations.

Matt Anderson

Thank you, Jason. Good afternoon, and thank you for joining us today to review Nextdoor's First quarter 2023 financial results. With us on the call today are Sarah Friar, Chief Executive Officer; and Mike Doyle, Chief Financial Officer. 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 the Q1 2023 shareholder letter released today.

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

Sarah Friar

Thank you, Matt, and hello everyone. We started 2023 with a strong quarter and we're seeing meaningful progress across a range of business outcomes. Starting with neighbors, WAU grew 16% year-over-year and 6% sequentially in Q1, demonstrating healthy and growing engagement. This growth was led by neighbors in the US where we added over 2 million net WAU quarter-over-quarter. Over 80 million verified neighbors come to Nextdoor with high intent to join, connect, contribute, and transact thus finding unique value from the utility and the community offered on the platform.

In 2023 we have been building product momentum focusing on growing the base of neighbors and organizations on Nextdoor through work on invites and content sharing. We've been deepening engagement and driving client conversation through better feed and discover personalization and new content types such as events. Finally, we are making progress on our local ad platform for businesses of all sizes to benefit from Nextdoor's [high-intent] audience and the ability to target neighborhoods everywhere. Our investments in AI including ML have seen strong returns, particularly in deepening engagement. In Q1, this is the leading driver of WAU growth.