Nextdoor Holdings Inc. reported second-quarter revenue of $63.3 million, surpassing analysts’ expectations of $58.3 million. The company anticipates continued growth, projecting third-quarter sales of $62 million, exceeding analysts’ estimates of $59.4 million. CEO Nirav Tolia highlighted a strategic shift named NEXT, aiming to reshape Nextdoor into a daily-use platform beyond occasional needs like emergencies or local services.
Tolia emphasized leveraging local information to attract users regularly, aiming to make Nextdoor indispensable in daily life. The platform, with 45 million weekly active users, saw an 8% increase year-over-year. Tolia credited the growth partly to a self-serve advertising system, which contributed nearly 50% of quarterly revenue, up from 39% last year. Artificial intelligence tools also played a role in managing content quality.
The company’s stock, which closed at $2.51 in New York, remained stable in after-hours trading. Tolia expressed confidence in the new product strategy, expected to yield results by mid-2025, aligning with Nextdoor’s recent leadership changes and board revamp.