Nextdoor Holdings, Inc. (NYSE:KIND) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET

Company Participants

Matt Anderson - IR

Sarah Friar - CEO

Michael Doyle - CFO

Conference Call Participants

Mark Mahaney - Evercore

Eric Sheridan - Goldman Sachs

Chloe Currie - Morgan Stanley

Operator

Good afternoon. Thank you for attending today's Nextdoor First Quarter 2022 Financial Results. My name is Tamiya, and I will be your moderator for today's call.

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

Matt Anderson

Thank you, operator. I'm Matt Anderson, Head of Investor Relations. Good afternoon, and thank you for joining us today to review Nextdoor's first quarter 2022 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 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 today's earnings release.

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

Sarah Friar

Thank you, Matt. Hello, everyone. We had a strong start to the year, continuing our momentum from Q4 into Q1. Nextdoor is benefiting from the combined tailwind of the rise of local and social commerce. Neighbors remains highly engaged in their communities, resulting in a third consecutive quarter of accelerating year-over-year weekly active user or WAU growth.

This contributed to sustained revenue growth of 48% year-over-year, consistent with Q4 and Q1 ARPU growth of 12% year-over-year, driven by continued advertiser demand. We are mindful of the macro backdrop, war in Europe, lockdowns in China, U.S. consumer price index at 8.5% and consumer sentiment at its lowest level since 2011.

But we also know that in times of need, Nextdoor is a platform that neighbors turn to for help, and we are a unique and differentiated platform for advertisers of all sizes. Our purpose is our North Star, cultivating a kinder world where everyone has a neighborhood to rely on. Neighbors come for trusted information, to give and get help and to create relationships online that can be expanded into the real world.