Nextdoor Holdings Reports Q1 2025 Revenue Growth to $54.2 Million

Nextdoor Holdings, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $54.2 million, a 2% increase from $53.1 million in the same period last year. The company attributed this growth primarily to a 5% rise in weekly active users (WAUs), which reached 46.1 million. However, the average revenue per weekly active user (ARPU) decreased by 4% to $1.18, reflecting stronger user growth relative to revenue growth. The total costs and expenses for the quarter were $81.2 million, down 8% from $87.9 million in the prior year, leading to a net loss of $22.0 million, a 22% improvement compared to the $28.3 million loss reported in Q1 2024.

In terms of operational metrics, Nextdoor's platform WAUs, which exclude users engaging solely through monetizable email content, also grew by 5% year-over-year. The company continues to focus on enhancing user engagement and monetization, particularly in the U.S. market, where it generates the majority of its revenue. As of March 31, 2025, Nextdoor had $417.9 million in cash, cash equivalents, and marketable securities, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Nextdoor's strategic developments included a significant reduction in sales and marketing expenses, which fell by 26% to $22.1 million, primarily due to decreased personnel-related costs and lower performance marketing expenditures. Research and development expenses increased by 7% to $33.5 million, driven by higher personnel costs associated with an expanded headcount. The company continues to invest in its platform to enhance user experience and engagement, which is critical for its long-term growth strategy.

Looking ahead, Nextdoor's management expressed optimism about its ability to scale operations and improve monetization efforts. The company is focused on expanding its presence in existing markets while exploring opportunities for geographic expansion. However, it also acknowledged potential challenges, including economic conditions and competition in the advertising space, which could impact future performance. The company remains committed to its NEXT initiative, aimed at enhancing its platform and increasing user engagement, which it views as essential for driving future growth.