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Nextdoor Holdings (KIND)
NYSE:KIND
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Nextdoor Holdings
(NYSE:KIND)
44Neutral
Positive Factors
Advertising Performance
The use of Nextdoor real-time audience capabilities to retarget users based on their Nextdoor search history has led to over a 10x ROAS for advertisers relative to traditional campaigns.
Revenue Growth
KIND's advertising initiatives led to a 17% year-over-year revenue growth, supported by ad product improvements like search history retargeting and click optimization.
Negative Factors
Product Development
Meaningful progress on KIND's platform transformation is not expected until mid-2025, indicating a delay in product-related advancements.
Nextdoor Holdings (KIND) vs. S&P 500 (SPY)
Market Cap
$652.85M
Dividend YieldN/A
Average Volume (3M)2.58M
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth13.27%
EPS Growth34.93%
CountryUS
Employees594
SectorCommunication Services
Sector Strength79
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)-0.25
Shares Outstanding235,586,520
10 Day Avg. Volume4,822,544
30 Day Avg. Volume2,583,932
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.55
Price to Cash Flow (P/CF)13.40
P/FCF Ratio13.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.50Price Target Upside47.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Nextdoor Holdings Business Overview & Revenue Model
Company DescriptionNextdoor Holdings (KIND) operates a social networking platform designed to connect neighbors and build stronger local communities. The platform allows users to share information, seek recommendations, buy and sell goods, and organize local events. Nextdoor serves as a hub for local communication, focusing on neighborhood-specific content and engagement.
How the Company Makes MoneyNextdoor's revenue model primarily revolves around advertising. The company generates income by offering local businesses and national advertisers targeted advertising opportunities on its platform. Through its hyper-local focus, Nextdoor provides advertisers with the ability to reach specific neighborhoods and engage with users in a more personalized and community-centric manner. Additionally, Nextdoor partners with public agencies and organizations to facilitate community engagement and communication, contributing to its revenue streams.
Nextdoor Holdings Financial Statement Overview
Summary
Nextdoor Holdings demonstrates revenue growth but faces profitability challenges with negative net profit margins and operating losses. The balance sheet is strong with low leverage, but cash flow remains negative, indicating operational inefficiencies.Income Statement
Nextdoor Holdings shows a consistent increase in revenue over the years, with a positive revenue growth rate in recent years. However, the company has been operating at a loss, as evidenced by the negative net profit margin and EBIT margin. The gross profit margin remains healthy, indicating efficient direct cost management, but the overall profitability is hampered by high operating costs.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with a high equity ratio, suggesting financial stability. The debt-to-equity ratio remains low, indicating low leverage and risk. However, the company has not been able to generate positive returns on equity due to persistent losses, highlighting a need for enhanced profitability to improve shareholder value.50
Neutral
Cash Flow
Nextdoor Holdings has improved its free cash flow over the last year, though it remains negative. The cash flow from operations is also negative, indicating challenges in generating cash from core operations. The free cash flow to net income ratio remains unfavorable, showing the need for better operational cash management.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 247.28M | 218.31M | 212.76M | 192.20M | 123.28M | Gross Profit |
| 205.43M | 176.70M | 173.78M | 163.38M | 101.70M | EBIT |
| -121.64M | -172.28M | -144.20M | -94.81M | -76.65M | EBITDA |
| -121.64M | -166.51M | -138.55M | -90.63M | -73.59M | Net Income Common Stockholders |
| -98.06M | -147.76M | -137.92M | -95.33M | -75.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 426.98M | 531.10M | 583.30M | 715.81M | 136.98M | Total Assets |
| 513.95M | 654.56M | 699.56M | 840.09M | 217.75M | Total Debt |
| 40.75M | 66.59M | 61.60M | 68.73M | 39.60M | Net Debt |
| -4.80M | 6.35M | 6.36M | -453.08M | -44.04M | Total Liabilities |
| 60.47M | 96.01M | 88.49M | 95.10M | 515.60M | Stockholders Equity |
| 453.49M | 558.56M | 611.07M | 744.99M | -297.86M |
| Cash Flow | Free Cash Flow | |||
| -20.61M | -59.54M | -63.66M | -60.11M | -46.63M | Operating Cash Flow |
| -20.20M | -59.27M | -60.50M | -51.27M | -41.60M | Investing Cash Flow |
| 86.43M | 66.49M | -342.45M | -149.52M | 36.79M | Financing Cash Flow |
| -81.03M | 8.92M | -64.35M | 637.58M | 6.37M |
Nextdoor Holdings Technical Analysis
Negative
1.69
Price Trends
2.39
Negative
2.44
Negative
2.49
Negative
Market Momentum
-0.25
Positive
28.24
Positive
9.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIND, the sentiment is Negative. The current price of 1.69 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.39, and below the 200-day MA of 2.49, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 28.24 is Positive, neither overbought nor oversold. The STOCH value of 9.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIND.
Nextdoor Holdings Risk Analysis
Nextdoor Holdings disclosed 56 risk factors in its most recent earnings report. Nextdoor Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nextdoor Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.34B | 22.84 | 11.92% | ― | 3.05% | 55.96% | |
72 Outperform | $2.29B | 18.38 | 17.79% | ― | 5.61% | 37.61% | |
62 Neutral | $7.85B | 15.85 | -865.98% | 0.60% | 3.41% | -10.41% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% | |
57 Neutral | $782.39M | 22.05 | 3.42% | ― | -17.69% | ― | |
56 Neutral | $388.53M | 20.68 | 48.32% | ― | -4.85% | ― | |
44 Neutral | $652.85M | ― | -19.38% | ― | 13.27% | 34.93% |
* Communication Services Sector Average
Performance Comparison
KIND
Nextdoor Holdings
1.71
-0.54
-24.00%
ANGI
Angi
1.56
-1.14
-42.22%
GRPN
Groupon
13.98
-4.11
-22.72%
YELP
Yelp
34.88
-3.48
-9.07%
ZM
Zoom Video Communications
73.95
5.51
8.05%
MTCH
Match Group
30.74
-2.36
-7.13%
Nextdoor Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -32.13% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Nextdoor demonstrated strong financial performance in Q4 2024, achieving positive adjusted EBITDA and operating cash flow for the first time, alongside significant revenue and user growth. However, the company anticipates short-term challenges in revenue growth and ad impressions due to strategic shifts towards launching NEXT. The long-term outlook remains positive as the company focuses on delivering a transformed user experience.Highlights
Positive Adjusted EBITDA and Operating Cash Flow
For the first time, Nextdoor achieved positive adjusted EBITDA and operating cash flow, an important milestone, with Q4 adjusted EBITDA at $3 million and operating cash flow at $11 million.
Revenue Growth
Revenue grew 17% year-over-year to $65 million in Q4, driven by self-serve advertisers and improved revenue retention.
User Growth
Weekly active users increased by 10% year-over-year, reaching 45.9 million, with significant growth among users aged 18 to 34.
Strategic Product Development with NEXT
The launch of NEXT is on track for mid-2025, focusing on richer local content, timely local alerts, and community-powered recommendations.
Strong Balance Sheet
Ended the year with $427 million in cash, cash equivalents, and marketable securities, and no debt.
Lowlights
Short-term Impact on Revenue Growth
Expected revenue growth to be approximately flat in the first half of 2025 due to reductions in ad impression supply and reduced spending from large advertisers shifting budgets towards programmatic ad buying.
Temporary Decline in Ad Impressions
Ad impressions expected to decline in the near term due to strategic testing and the transition to the NEXT initiative.
Shift in Large Advertisers' Spending
Observed reduced spending among certain large advertisers, partly due to a shift towards programmatic ad buying.
Company Guidance
In the recent earnings call, Nextdoor provided detailed guidance for its fiscal year 2025. The company reported a 10% year-over-year increase in weekly active users, totaling 45.9 million, and a 17% rise in revenue, reaching $65 million for Q4 2024. Notably, Nextdoor achieved positive adjusted EBITDA and operating cash flow for the first time. For Q1 2025, the company anticipates revenue of approximately $53 million and an adjusted EBITDA loss of $13 million, due to strategic decisions to prioritize long-term growth over short-term gains. These decisions include the rollout of the reimagined user experience, NEXT, expected to launch by mid-2025, which may temporarily impact ad impressions and user engagement metrics. Nextdoor's focus on organic user growth, improved ad server performance, and new partnerships is aimed at reinforcing its role as a key local resource, despite anticipated short-term challenges.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.