Nextdoor Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, expenses, and net losses compared to the previous fiscal period.
For Q3 2024, Nextdoor generated revenue of $65.6 million, a 17% increase from $56.1 million in Q3 2023. For the nine months ended September 30, 2024, revenue reached $182.0 million, up 12% from $162.8 million in the same period last year. This growth was attributed to increased advertiser spending and a 13% rise in Weekly Active Users (WAUs), which reached 45.9 million. The Average Revenue Per Weekly Active User (ARPU) also increased by 3% to $1.43.
Total costs and expenses for Q3 2024 were $86.4 million, a decrease of 14% from $100.5 million in Q3 2023. For the nine-month period, expenses were $286.6 million, a slight decrease from $287.4 million. The reduction in costs was primarily driven by a significant decrease in research and development expenses, which fell by 20% in Q3 2024 due to reduced headcount and associated personnel costs.
Nextdoor reported a net loss of $14.9 million for Q3 2024, a 61% improvement compared to a net loss of $38.1 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $85.9 million, down 20% from $107.2 million in the prior year. The adjusted EBITDA loss for Q3 2024 was $1.3 million, a 93% decrease from $19.8 million in Q3 2023.
As of September 30, 2024, Nextdoor's total assets were $517.7 million, down from $654.6 million at the end of 2023. Cash and cash equivalents decreased to $49.7 million from $60.2 million, while marketable securities also fell to $375.0 million from $470.9 million. Total stockholders' equity was reported at $456.0 million, down from $558.6 million at the end of 2023.
Strategically, the company has undergone significant restructuring, including a workforce reduction of approximately 25% in November 2023 and an additional impact on 38 employees in April 2024. These measures were aimed at optimizing costs and aligning operations with growth objectives. The company also ceased occupying certain floors of its San Francisco headquarters, leading to impairment charges of $22.7 million.
Nextdoor's share repurchase program was expanded in February 2024, allowing for the repurchase of up to $150.0 million in shares, with $99.5 million available for future repurchases as of September 30, 2024. The company continues to face challenges in attracting and retaining advertisers amid a competitive landscape, particularly due to regulatory changes and limitations on data collection.
About Nextdoor Holdings, Inc.
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