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Neighborhood social network Nextdoor (NYSE:KIND) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 1.9% year on year to $54.18 million. Its non-GAAP loss of $0.06 per share was in line with analysts’ consensus estimates.
Is now the time to buy KIND? Find out in our full research report (it’s free).
Nextdoor’s first quarter was shaped primarily by its ongoing transformation initiative, NEXT, which management described as a fundamental redesign of the platform to enhance user engagement and deliver more timely, hyper-local content. CEO Nirav Tolia emphasized that the company’s most significant progress during the quarter was product-related, with the transition to NEXT prioritized over near-term growth metrics. He highlighted that, “any short-term trade-offs we have made and continue to make are intentional and aligned with our plan to maximize long-term value.” The company also reported steady user growth and improved adjusted EBITDA margins, attributing these gains to disciplined expense management and improved marketing efficiency.
Looking ahead, Nextdoor’s leadership is focused on launching the NEXT platform to all U.S. users by late July, with expectations that deeper engagement and new features will set the stage for improved monetization. Management is targeting three core pillars with this product overhaul: local news, real-time alerts, and AI-driven recommendations. Tolia noted, “We expect that by the end of July, we will have released NEXT to everyone in the U.S.,” adding that initial feedback from advertisers has been encouraging. CFO Matt Anderson acknowledged that while large advertiser spending remains a headwind, he expects upcoming ad platform enhancements and the rollout of programmatic ad buying to support a return to revenue growth in the second half of the year.
Management linked first quarter performance to disciplined cost controls, a focus on user experience upgrades, and the initial phase of the NEXT product transformation, while highlighting near-term trade-offs for longer-term value.
Nextdoor’s forward outlook centers on the full launch of NEXT, expansion of ad surfaces, and the shift to programmatic advertising, balanced against near-term advertiser spending headwinds.
In the upcoming quarters, the StockStory team will closely track (1) the uptake and user response to the full NEXT platform launch, (2) progress on enabling programmatic ad buying and its effect on advertiser demand, and (3) the transition from traditional WAU to platform WAU as a core metric for engagement and monetization. Additionally, the pace and quality of AI-driven feature adoption will serve as a key indicator of Nextdoor’s evolving value proposition.
Nextdoor currently trades at a forward price-to-gross profit ratio of 3×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it’s free).
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