Nextdoor Holdings, Inc. reported a revenue of $247.3 million for the fiscal year ending December 31, 2024, marking a 13% increase from $218.3 million in 2023. The company’s net loss decreased significantly to $98.1 million, down from $147.8 million the previous year, reflecting a 34% improvement in profitability. Adjusted EBITDA loss also saw a substantial reduction, decreasing by 75% to $18.2 million compared to $74.1 million in 2023. The company attributed its revenue growth to increased advertiser spending and user engagement, with Weekly Active Users (WAUs) rising to 46 million, a 10% increase year-over-year.
In terms of operational changes, Nextdoor undertook a restructuring plan in April 2024, which impacted 38 employees and resulted in one-time charges of approximately $2.8 million. Additionally, the company ceased occupying certain floors of its San Francisco headquarters, leading to impairment charges of $22.8 million. These restructuring efforts were part of a broader strategy to align the workforce and expenses with revenue expectations and long-term business priorities. The company also executed a cost reduction plan in late 2023, which included a 25% reduction in full-time employee headcount.
Nextdoor's advertising solutions continue to evolve, with the company focusing on enhancing its proprietary ad platform and expanding its sales force to attract more national brands. The average revenue per weekly active user (ARPU) increased by 4% to $5.48, driven by stronger revenue growth relative to WAU growth. The company is also exploring international expansion, although it acknowledges that monetization in these markets may present challenges compared to its established U.S. operations.
Looking ahead, Nextdoor remains committed to investing in technology and product enhancements, particularly through its NEXT initiative aimed at transforming the platform. The company has $427 million in cash, cash equivalents, and marketable securities, which it plans to use to support its growth strategies. However, it also cautions that macroeconomic conditions, including inflation and potential recessions, could impact its future performance. The company’s ability to achieve sustained profitability remains uncertain, as it continues to navigate a competitive landscape and the complexities of scaling its operations.
About Nextdoor Holdings, Inc.
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