Nextdoor
Holdings, the locally focused social media company, posted better-than-expected financial results, returning to top-line growth after two quarters of revenue declines.
For the second quarter, Nextdoor (ticker: KIND) reported revenue of $57 million, up 4% from the year-ago quarter and ahead of the Wall Street consensus forecast of $53.5 million. The company posted a net loss of $35.4 million, while the Street forecast was for a loss of $36.5 million.
Likewise, adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization was a loss of $18.6 million, while the Street had expected a loss of $23.3 million.
Nextdoor said weekly average users were 41.6 million, up 13% from a year ago.
Nextdoor said it expects to post positive revenue growth for the year, with an improving adjusted Ebitda margin. The company also said it expects revenue growth to accelerate in the second half.
CEO Sarah Friar said in an interview with Barron’s that third-quarter growth will be comparable to the second quarter’s, but will accelerate into the mid to high teens in the fourth quarter.
Friar wouldn’t give a detailed forecast of what will happen after that, but she did say that the company should do better than single-digit growth.
Nextdoor finished the quarter with $551.6 million in cash, equal to about half of the company’s roughly $1 billion market cap. Friar said that while the company has repurchased shares in recent quarters, it didn’t buy back any stock this time because the company wants to use some of the cash to achieve better growth.
Nextdoor shares, which have rallied about 41% so far this year, were up 1.7% in late trading Tuesday.
Write to Eric J. Savitz at [email protected]
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