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Nextdoor Holdings (KIND)
NYSE:KIND
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Nextdoor Holdings
(NYSE:KIND)
Rating:51Neutral
Price Target:
$1.50
▼(-9.09%Downside)
Positive Factors
Platform Development
KIND is undergoing a platform rebuild with its 'NEXT' platform roll out, which aims to deliver better and more relevant content to deepen engagement and ultimately revive top-line growth.
Negative Factors
Advertiser Spending
Large advertisers have reduced their ad spend on the platform, contributing to a slowdown in revenue growth.
Revenue Decline
KIND's new platform roll-out is expected to cause a year-over-year decline in top-line revenue, leading to a downgrade in rating.
Nextdoor Holdings (KIND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$619.79M
Dividend YieldN/A
Average Volume (3M)1.86M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth12.01%
EPS Growth35.71%
CountryUS
Employees546
SectorCommunication Services
Sector Strength86
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.06
Shares Outstanding234,706,940
10 Day Avg. Volume1,714,693
30 Day Avg. Volume1,863,874
Financial Highlights & Ratios
PEG Ratio-1.70
Price to Book (P/B)1.43
Price to Sales (P/S)0.00
P/FCF Ratio-93.64
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda-1.10
Forecast
1Y Price Target
$1.10Price Target Upside-33.33% Downside
Rating ConsensusHold
Number of Analyst Covering3
Nextdoor Holdings Business Overview & Revenue Model
Company DescriptionNextdoor Holdings, Inc. operates as the neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. It enables small and mid-sized businesses, large brands, public agencies, and nonprofits to receive information, give and get help, and build connections. The company is headquartered in San Francisco, California.
How the Company Makes MoneyNextdoor Holdings generates revenue primarily through advertising. The platform offers local businesses, brands, and service providers the opportunity to reach targeted audiences within specific neighborhoods, making its advertising solutions appealing to those seeking geographically-focused marketing. Advertisers can create sponsored posts, display ads, and other promotional content to engage with users in specific locations. Additionally, the company may also explore partnerships with businesses and organizations that align with its community-focused mission, though detailed information about such partnerships is not publicly specified.
Nextdoor Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 9.27%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a focus on strategic growth initiatives with the launch of NEXT, aimed at enhancing user engagement and monetization. Despite a slight increase in revenue and user growth, challenges with large advertisers and a focus on long-term improvements may delay immediate financial benefits. However, the company's innovation and strategic focus suggest a positive long-term outlook.Q1-2025 Updates
Positive Updates
User Growth
Weekly active users (WAU) grew 6% year-over-year to 46.1 million, reflecting steady new U.S. user acquisition.
Revenue Increase
Revenue rose 2% year-over-year to $54 million, despite challenges in certain advertising segments.
Improved Profitability
Net loss of $22 million, representing a 13 percentage points of year-over-year margin improvement, and a 9 percentage points year-over-year improvement in adjusted EBITDA margin.
AI and Monetization Innovations
Introduction of AI-driven features in the Nextdoor Ads Manager, reducing friction for advertisers and enhancing monetization opportunities.
NEXT Product Launch
Upcoming launch of NEXT, a significant product transformation aimed at enhancing user engagement and monetization opportunities.
New Ad Surfaces
Development of new advertising surfaces such as alerts, which have garnered interest from existing clients.
Negative Updates
Challenges with Large Advertisers
Some large advertisers reduced their spend, shifting budgets towards programmatic ad buying, impacting revenue.
Limited Immediate Monetization Impact
The introduction of NEXT is prioritized for long-term retention, affecting the total impression opportunities expected in Q2.
Company Guidance
During Nextdoor's First Quarter 2025 Earnings Conference Call, CEO Nirav Tolia and CFO Matt Anderson provided guidance on the company's strategic focus and financial outlook. They highlighted a 6% year-over-year growth in weekly active users (WAU) to 46.1 million and a 2% increase in revenue to $54 million. The call emphasized the upcoming launch of the NEXT initiative, aimed at enhancing user engagement and monetization through features like hyper-local alerts and AI-driven recommendations. Tolia detailed how NEXT aims to transition the platform from reactive to proactive by introducing structured feeds and alert systems, with plans to roll out the full version by late July 2025. The company also plans to adopt platform WAU as the primary user metric starting in Q2, reflecting a shift towards more in-app engagement. Financial guidance for Q2 2025 includes expected revenue of approximately $60 million and an adjusted EBITDA loss of around $10 million, driven by a strategic focus on long-term user retention and enhanced advertising capabilities.Nextdoor Holdings Financial Statement Overview
Summary
Nextdoor Holdings shows potential with revenue growth but struggles with profitability and cash flow. The strong equity base and low leverage are positive, yet operational losses need addressing for stability.Income Statement
Nextdoor Holdings has shown consistent revenue growth, with a 16.7% increase from 2023 to 2024. However, profitability remains a challenge with negative net profit margins and EBIT margins. The TTM indicates a slight improvement in EBITDA margin, but net income is still negative, highlighting ongoing operational challenges.45
Neutral
Balance Sheet
The company maintains a strong equity position with a high equity ratio of 88.1% in TTM. The debt-to-equity ratio is low, suggesting prudent leverage. However, declining stockholders' equity due to continuous losses is a concern that needs addressing for future stability.55
Neutral
Cash Flow
The cash flow statements indicate negative free cash flow, though there is an improvement in operating cash flow in TTM. There is a need for better cash management to achieve positive free cash flow and sustain operations without additional financing.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 248.31M | 247.28M | 218.31M | 212.76M | 192.20M | 123.28M | Gross Profit |
| 206.99M | 205.43M | 176.70M | 173.78M | 163.38M | 101.70M | EBIT |
| -113.90M | -121.64M | -172.28M | -144.20M | -94.81M | -76.65M | EBITDA |
| -111.39M | -121.64M | -166.51M | -138.55M | -90.63M | -73.59M | Net Income Common Stockholders |
| -91.75M | -98.06M | -147.76M | -137.92M | -95.33M | -75.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 172.46M | 426.98M | 531.10M | 583.30M | 715.81M | 136.98M | Total Assets |
| 0.00 | 513.95M | 654.56M | 699.56M | 840.09M | 217.75M | Total Debt |
| 0.00 | 40.75M | 66.59M | 61.60M | 68.73M | 39.60M | Net Debt |
| 172.46M | -4.80M | 6.35M | 6.36M | -453.08M | -44.04M | Total Liabilities |
| 0.00 | 60.47M | 96.01M | 88.49M | 95.10M | 515.60M | Stockholders Equity |
| 189.87M | 453.49M | 558.56M | 611.07M | 744.99M | -297.86M |
| Cash Flow | Free Cash Flow | ||||
| -6.62M | -20.61M | -59.54M | -63.66M | -60.11M | -46.63M | Operating Cash Flow |
| -6.21M | -20.20M | -59.27M | -60.50M | -51.27M | -41.60M | Investing Cash Flow |
| 72.09M | 86.43M | 66.49M | -342.45M | -149.52M | 36.79M | Financing Cash Flow |
| -80.99M | -81.03M | 8.92M | -64.35M | 637.58M | 6.37M |
Nextdoor Holdings Technical Analysis
Neutral
1.65
Price Trends
1.49
Positive
1.86
Negative
2.16
Negative
Market Momentum
0.03
Negative
66.45
Neutral
84.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIND, the sentiment is Neutral. The current price of 1.65 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.49, and below the 200-day MA of 2.16, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 84.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KIND.
Nextdoor Holdings Risk Analysis
Nextdoor Holdings disclosed 55 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 2 New Risks
1.
Our product and investment decisions may conflict with the short-term financial results and may not produce the long-term benefits that we expect. Q4, 2024
2.
Failure to obtain, maintain, protect or enforce our intellectual property and proprietary rights could enable others to copy or use aspects of our platform without compensating us, which could harm our brand, business, and results of operations. Q4, 2024
Nextdoor Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.70B | 25.75 | 9.18% | 4.11% | 26.71% | -23.67% | |
78 Outperform | $2.36B | 17.81 | 19.74% | ― | 5.93% | 29.17% | |
74 Outperform | $917.29M | 25.19 | 32.17% | ― | 113.43% | ― | |
65 Neutral | $686.27M | 19.73 | -12.40% | ― | 4.20% | -350.95% | |
61 Neutral | $14.60B | 5.88 | -4.32% | 3.68% | 2.75% | -30.55% | |
57 Neutral | $512.58M | ― | -5.28% | ― | -7.89% | -192.35% | |
51 Neutral | $619.79M | ― | -18.77% | ― | 12.01% | 35.71% |
* Communication Services Sector Average
Performance Comparison
KIND
Nextdoor Holdings
1.64
-0.82
-33.33%
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25.87
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OPRA
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18.91
4.42
30.50%
GETY
Getty Images Holdings
1.63
-1.95
-54.47%
TTGT
TechTarget, Inc.
7.42
-17.05
-69.68%
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.