Nextdoor (KIND) 8 Aug 232023 Q2 Earnings call transcript

Hello, everyone. Thank you for attending today's Nextdoor Second Quarter 2023 Earnings Call. My name is Sierra, and I'll be your moderator today. [Operator Instructions].

I would now like to pass the conference over to our host, Matt Anderson, Head of Investor Relations of Nextdoor. proceed. Please

are Good Nextdoor's you results. Chief second on call Sierra. today joining With Financial and Executive the review Chief to quarter today Officer. afternoon, you, Mike for thank us us Officer; Thank and Friar, Doyle, Sarah XXXX financial

uncertainties. are statements are During call, and are of of performance. They that not to make under a Federal risks to our statements guarantees this statements related Securities subject variety may business we forward-looking Laws. These future

Our materially any actual differ forward-looking statements. in results expectations reflected could from

as For important SEC's a factors important our our please and the website discussion of today's the in the the discussed well section to and website material actual risks release. factors risks other Relations and SEC refer on our Investor affect other that available earnings in filings could of results, as

in non-GAAP conference today's can their directly discussed comparable financial GAAP measures Letter call. A found QX be measures measures to Additionally, of these released today. most the on financial XXXX Shareholder will reconciliation be

With the that, to over turn call to Sarah. like I'd

improvement. well Thank adjusted a or for delivered we WAU, as active our strong revenue of growth you, across and as with us, year-over-year key margin users quarter EBITDA metrics QX Matt. weekly as

Starting with million was to globally. year-over-year XX.X neighbors, WAU XX%

While of sequentially, in the WAU WAU we half declined slightly the year. first added million X.X

since We also XX%, XXXX. that end the saw increased strength and has of underlying engagement sessions trends, most which notably

platform the by enable development. and ad number We are driving neighbors increase and revenue and successfully deepen executing creation personalization and sustainable growth, of to XXXX on on initiatives content the our organizations advertiser product through platform, engagement

initiatives. Annual QX, sharing to Campaign, their organizations neighbors Neighborhood and voted local we neighbors launched We brand continue bring receive new recommendations other Seventh XX% Nextdoor more This also through businesses. times them neighbors. to invites, favorite Winners business for value where Faves our Nextdoor content and their ads, In awareness on five clicks building from recommendations of It benefits six almost businesses. neighbors, times more on benefits their campaign brand and pages.

the businesses During on on interaction the campaign over pages million virtuous a creating nearly between X.X business of recommendations, platform went XX and we businesses. a audience million and platform, cycle to we the years public claims million and X.X million strong With neighbors neighbors just than voted reach for intent local deliver in over business providing faves and almost support X presence to real relative when value of neighborhoods everywhere. ago, less for people businesses, and created by high two

neighborhood winners, we neighborhoods that businesses know Last thrive. businesses they month, XXXX faves to at the local Blooms Foley these like with small when and like opening the Cluny beloved Cafe, rang had We celebrate Brooklyn NYSC. as the opportunity the bell thrive, Hardware

to seeing and to neighbors results Nextdoor XX% local more global for the the and and through also in awareness platform to Redux. seamless initiatives We're things in We're done as Nextdoor the the we including drive These Nextdoor bringing In content get on the Nextdoor. platform, to with this quarter, more with raise early off partnerships partnering engagement neighbors, with verified help news process days our BBC of share the to accelerated API make organically of quarter. and very coming Axios locally. initiatives content over of

dynamic We're of local because for positioned unique graph. AI possibilities our well explore applications, to generative and AI the knowledge highly and

exchanging services. date most information, train this including can item. local telling In information ultimately post and our are a or an from Nextdoor, or words, and if other Our goods use models, to recommendation, already needs a sale us the is We up neighbors event for help tagging. time graph neighbors real benefits more or their easily ML on their meet business to finding

ML especially drive newsfeed to to potential outcomes. the in based We product AI a critical in to of initiatives AI continues to the the neighbors help AI for excited travel QX. engagement across are implemented drive WAU neighborhood. revenue in play content We our role both on and number

fewer has posting and neighborhoods are driven seeing with As vest, a common session which content, more greater neighbors even result, revenue.

customize neighborhood newsfeed level and neighbor Using the characteristics interests. AI newsfeed like characteristics to population to precursor for personalizing a like is the engagement for

we've We that late neighbors adoption. helps a seen continue A are see posts. majority of started neighbors The engaging positive AI to choosing who and testing productive in kinder integrate to more the assistants for quarter. them, assistant leading roll and out we to way suggestions posts posts the generative create last more system and generated are strong

those high neighbors We've to network, and platform. recommendations, case from the on vice for use strong the seen highlighting two-sided particularly businesses versa connecting or traction creating posts business our

we efforts have hurtful. the our addition, to rephrase ways reminder vitality. potentially work integrated foster our ongoing to suggest kindness system comments accelerates are to In with This that neighborhood

platform Spark to Julianne Member enables Connection, Social Foundation are all US Plenary Loneliness Scientific Closing and Dr. and and on for Earlier that NAACP with as honored of the NAACP, thrive. we president and together. participate such Founding on the Lab, this Jennifer Connection, we Holt-Lunstad, Stanford Derek Global Johnson Keynote and advisors the month, thriving And the as working for Eberhardt Johnson, Board neighbors creating Convention a CEO, Chair President trusted Initiative and were theme partners with National welcoming and to

engagement like the integral to an features While of and generative growth part more AI there's kindness assistant strategy. and are our do, reminder

and designed enhance ultimately experience and Beyond product AI, other user several launched to Nextdoor features the revenue. drive engagement we

contextually with example, sale on through ads For our partnership Bing. classified for surface relevant and free Microsoft our

strong for for for relevant well posts ads search better neighbors as neighbor provide ads item, bike, value. a bikes. example, when neighbor experience advertiser create and relevant as Contextually bikes for see they Now an

in of most One the areas our ad on progress of significant QX was platform.

been reduce proprietary ad building self-serve well to efforts, outcome. to foundation the designed the designed improve advertiser Over several ad as our as quarters, for past experience, we've advertiser improved our server

point, migrating existing improved Nextdoor the is the of size. to tool, results. in manager When now they to ads hyper newly we available them solar At ad advertisers started local a experience, serve new Arizona experience positive and way. ad uniquely self-serve have to advertisers our we're seeing codes allows Our creation this to appreciate in zip ads migrated targeted and company said specific greatly any

and the some the a It Manager proximity key Nextdoor to is differentiators. as functionality as our Ads ease place of of testament well as in

and powerful Nextdoor Ad SMB loading of already of offering distribution now XXX% impressions. is experience, better faster a US Server The including is advertising delivering times demand. ad server more

excited many neighbors time, with year-to-date better targeting server In product closing, provide and customers capabilities, door Over through our the on and growing growth priorities we're key base ad And metrics. continue pleased and to supporting next advertisers our organizations, initiatives business ad engagement executing benefiting to by the we've platform. made and our revenue and on alike. deepening driving we’re top will optimization neighbors progress of

And we return and beyond. margin confident expansion We generate QX. continue in we revenue overall that margin remain EBITDA adjusted and revenue XXXX to growth and will growth to improvement in

turn to And with that, I'll Mike. over it

In Sara. added with be mid-market, medium revenue $XX demonstrated sized quarter. an and We million growth. QX year-over-year, area strength. SMBs increasing Consistent and We revenue XX%, few of advertisers areas in past revenue Thank grew saw QX. quarter-over-quarter. continue quarters small momentum growth businesses of the to X% mid-market you, logos several of or returns more throughout the to

added us relationships QX we XXXX. by revenue revenue advertising with benefits of spend and deepen customers in XX% to agencies, year-over-year, continuing through came grew help from the our our and enterprise QX agency In then and new see strategies of unlock internationally partnerships. can this XX% XX% are global diversity. new who logos We new increase quarter accounts more International

Growth of continue in services and increase our real verticals larger advertisers travel. the other to this spend. muted. in by many estate verticals But offset overall strength and And was healthcare including financial remains

Home performance as from result of doubled For to QX [ph] LEAP this QX on example, strong the a of spend year platform.

of growing $XX negative $X.XX impressions, declined growth improvement management, X% growth was WAU reflecting four and XX and loss revenue while representing to This point sequential quarter reflecting margin. deliver million, a long-term objectives. expense growth resourced and also we QX revenue another is XX% period. improvement of a QX year-over-year, our point margin, adjusted a of year-over-year are and combination outpaced on a EBITDA ensuring which of in the both ARPU year-over-year

cost X% leverage. Notably, cost platform efficiencies drove as revenue grew operating hosting year-over-year, we of just

Our quarter of of another loss, cash $XX from benefit burn the adjusted operating million reflecting income. QX EBITDA was better interest than

We million ended $XXX marketable in QX with cash, equivalents securities. cash and

with to continue outlook. will evaluate I'll We capital our opportunities looking forward. allocation close our

with QX of year-over-year approximately QX our revenue to we today, We at XXXX. accelerate Based X% on year-over-year expect full growth rate XXXX growth for revenue QX digit implying mid-single the in growth be expect progress to line year growth growth.

million. be QX adjusted expect Turning $XX to minus adjusted EBITDA EBITDA, million minus to $XX to loss we

return year to EBITDA the XXXX. expect to continue We adjusted for improvement margin full to

substantial single operating metrics expense hold in and across half this digits the We've focused XXXX low will second We made remain product our key of revenue year-to-date, priorities. progress WAU and on growing sequential through business to growth year.

Thank the that to operator for call turn over you earnings Q&A. for joining today. it our I'll With

Thank from question with you. [Operator Instructions] Youssef Please proceed. Squali comes first Our today Truist.

from that is taking while to seems But really strike will do Robert more the for user curious, the see content relevant like expanding nearby Hi, time good between app. because the this on proposition a on Zeller nearby from localization? of our they idea a maintaining how close neighborhoods proximity more also and neighborhoods you Thanks questions. value will I'm the Increasing balance the spend the for content content Youssef. more

have more up. Nextdoor’s proposition? curious, Thanks. is expand Just I'll this without room then value core follow like how there one to losing And and then, much

great Thank Great. a you, It's Robert. question.

discussed internally. Something that a we've lot

little. I me line personalization. let a But answer is think punch the backtrack

the of higher really for used to Nextdoor much become for network years, private last and that community. And of has we higher on apart really in broke over a to be been moved much to local. private the from We social terms going couple your neighborhood. neighbors of utility shift

balance So there's a here.

made One to of as first we moves be content. have able anyone the to

exposure, think where useful under, lost going and high you something for want In about the if like to an depending from examples situation, So content with travel be us hyperlocal. But have it about go example, able that far. neighborhoods. pet, should a probably across that the [indiscernible] like emergency living how they're multiple could be lost piece actually something content stay those allows is, tornado travel, sadly to not you end, heat to to on all warning, or

any big So one that content. was a push on

content. SEO perspective. an the Of a I unique unique a going is we've joined place datasets to like I'm where in personalization, highly to lot also been doing dynamic, of well. graph, But leverage knowledge investments from of back that this of us the local AI/ML we lot because because deep a that course, areas gives Nextdoor as come are very

you'll having that, of hear data tagged or other top about companies get On labeled. talk their to

is gets data our neighbors. interesting in time by our real really Nextdoor that effectively labeled in

the flagging be us I'm models say, base, that to this is recommendation, selling, a to ability something a about on moderation, or for then this gives to a top is interesting of. So for this for hey, is something something post I'm I'm free, really them apply offering able

And a even a is probably so individual, from if we or might But they're for lot utility. lost whole [ph] models building like for looking to a willing of if travel keys they're to local local possibility streets. for others their run to people their get for is county. emergency radius. have very an that local an able their There, small have are And further being be plumber, train personalization, to those means literally their the for better looking some post do they a

case the and can of context. individuals, local for the on concept use change, depending even So the on

move on the balance gives private us. move have ability this So personalization. to multi-year efforts the kind long of local. based why for us It that's That's to done to term, we from now content

at that, don't But then allows point, as of younger, of in with neighbors creating When And it we're not as neighborhoods opposite started itself. you it the where amount brings also up platform. seeing your us that deeper content. engagement moment the many where have that now we can liquidity really do the perhaps for is to app already more higher to into which the neighbors to verified are scrolling much we the allows

end percentage faster. [ph] of That's that fact, why XX%, And just especially WAU but the grow you about over year the in year, that was you told grew saw that pushing up year. we overall XX% last since

up. appreciate the happy questions, follow the So to take

Okay, great. clarification. yes, you. up the is Thank And follow just

like the assistant business So purposes. straightforward utility a I it for It very improve for I'm seems understand, works the assistant for for purposes. features curious interesting exactly the seems for their how posts. helping pretty business feature new

does work? how that So exactly

is And is for the do and a the now so AI, cases we're big place recommendations. very particular, use seeing one assistants getting of giving the where right on in Yeah, Nextdoor well you. this

looking I had So see for Those posts recommendation the neighbors seeing we taking hair expect post salon, are more local if much to and that where way. in this AI's majority amazing rewrite off. at it shop. a or I give are ability I'm way And the of this places doughnuts to recommendation coffee for a a for the would want the say, yeah, we the I rather already morning the prompt engaging

being into like to is the less less we post, are similarity better as engaging. neighbors at learning tail, aggregation, we're get the What there's long maybe where still

will iteration a really good us of write where post. different now where kind offers to is ways And be there of of this give so, lot places that data. where of allows AI have began, we to And a the

a where fact and then really and Nextdoor, coming to the have and differentiated other is local, very we unique, And just places it that dynamic highly matters. back this there's highly knowledge ability stand tail really the by local so keeps local, unique graph. again, to long just demanding, what's which And authentic

writing about step think, is we're where going we generative in thinking really is ad. be platform from think this writing I away actually very that which AI our can just a effective insight an we're says AI I now recommendation, an don't going, a ad because have with

of benefit that effect. in advantage own and we're next next is build our generation platform ad on we of technology can through which now building The take the generation leapfrog

start posted AI, they've business. maybe a generative already So creating about what we a to think ad, pulling an that already is using from neighbors business, there's which ground very written fertile about have pictures,

you're local revenue, UFC you the the you [ph] server creating the sure be business of you're person doing you're CFO, service in And the even CMO. you're product, the stuff, when all also business, big might everything, the and but not and small business, easier, a get that a it's up. content. land, business, So showed just the great making where have a small you're get just provider, so like that we they the you're you're we where your ad out of if they can understands and make Nextdoor outcome And that wow, life phenomenal is neighbor think for it's me, a kind like, wow great really moment to for have business, a feel way more also great legal

ad, and go since on moment an hopefully with double back they them And into that's Nextdoor, page, almost AI just we we sell public. I can the are million and go, to right. Those business pages, And taken that now of claimed claimed Gen the X.X step that's have have that because went kind know upsell postings their place immediate first turning with businesses from helping. why it quoted the not

Thank you much. great. very Okay,

question. the Appreciate

proceed. Our Eric comes from Sheridan Please Sachs. next Goldman with question

for year, Maybe this Sarah. could. being relationships just two, Thanks as about into into terms relationships step of I decisions questions. thinking driver possibly about One, you a that taking date, you're your revenue made how quarter. in year execution in for through budget to and or the the up building of bit advertising count going agency that so agency you've of the the backdrop a made either importantly, more to much, could some the investments momentum piece drawn comment Thanks base, XXXX? advertiser and then advertiser so a you Can the and if talk much of little about nature next

take the Michael. I'll is question. this Eric,

significant team So in like agencies. our built have in building made industry advertising out verticals, with deepen approach a we've we investment relationships much a to our

advantage to of it's and best First to how then awareness agency the platform. learn platform. foremost, our take of to And with build client relationships help the help to to Nextdoor leverage them their to base,

to a base to introduction introductions spend budgets through more the relationships really advertiser some to on then and us get treatment the have allowing agency variety get base. make including This of advanced to that have with client the this, client where deepen has we helped preferential we ways trial person an do just us the We a of to platform.

partnership had our This with the new of direct XX% their mentioned And expectations we're area it alongside with make that is works base. agency we together relationships with sure accounts meeting our in. with an and We enterprise in And advertisers. component. the the an performance that delivering of will continuing QX we're work invest to agencies to the the client

the for color, Great, Mike. thanks

Eric. Thanks

Thanks, Eric.

Our with proceed. next question Please Ron Josey comes from Citi.

taking a on improving about adding got two. Nextdoor. Sarah little I've Thanks and sale free relevant and bit contextually ads in question. Great. dig for the wanted for to for, more

talk That's the So, terms classified about monetization and of question. the experience if improve could the specifically and first a integrated. it's us traffic more little the to big how bit you size then of user or how might business sessions in

I on you. The be is Any second helpful. question WAU, additional just would there that insights declined Thank think sequentially.

thanks, Ron. Yeah,

all first why on if one hyperlocal. billion come call I presale and by one free. is things of at large. So, It's we And free. number down, reason But and Nextdoor talked the have on dollars giving We we Nextdoor, second quite to per about. see people why of one we it's just that there come win people you actually and month their put breaking over pre-sale it presale free, marketplace number a just the is is I start recommendations, the look why to think that

a at don't can house. FedEx know someone I this, something that need show not to if up your So, trying garage of, in or to you probably you're going rid table, get your

to probably mom community high like to at might back wants has awesome, personally then give and we your up that that because trust bike are going show see she the give or someone's is two, it's this investment to that third a maybe kid someone the reason through that a house. platform away a he And community say, a well. dad, of, as out grown Number

the like And offered items the XX%-ish of it's catalog all fact, something actually think in are for I free. in about

more surface. broadly an onto on proposition you that local on up for where clients platform. buying put we're our speaking So love historically, And put our we've any incredible picked that ads obviously that that getting it's from community. the is piece value we I the ads just ads

integrate What to we ads QX we can with do Bing contextual more did is where in it platform, in ad. Microsoft's a now much

when also someone searches can a a show from ad. can so community. also contextual example, that show we Or for bikes bike, the we are them available for And the them

a And be one, from job get we third-party kid, your my we buy done, right? need experience through you to whether trying it it we're you there's of be here. doing couple Number just the vendor you a for I want whether community. an able that, get bike do a get to to want things awesome, actual neighbor or to You're to

advertiser we an But best have belief so it's also much a if possible testing have a going contextual intent that to such we high from and way of for audience, us has that that perspective, outcome. that they're deep moment, set can relevance we keep to high prove the an in offering this ad have the can we information keep

answer doing And the is yes, yes, it's the yes, performance. is Bing the that incredibly we're good ads news with

an confidence going advantage we about speaking, us about So able this as to given a actually it's ad relevance, because we something but just as be to are know of add know or and of contextual able proprietary to community. tech, from our also individual, more we're your research you our and data, we to new take something generally more that lot move of

And I remember can't actually… then you if Ron,

Can you still hear me?

we you. Yeah, can hear

on specifically? like declined Sarah, WAU, just sequentially. classified no, it that call Okay, it looks the helpful exciting. was I there on Anything hey, out the and to wondering was super

just a overall, $XX year-over-year say we felt and QX. I'm in just it up go outperformances would million down WAU. I a half No, comes under and of we've in in total settle at had QX, to year-over-year, lot little look going first and XX%, back of probably looked the to the growth

I think want of I really for a to out you. call couple things

WAU have XX% verified funnel proud our verified coming of we're the make our lot as sure all top of over of growth staying of we're a own we And one, costs mindful margin neighbor the Number is in came of is organically. platform quarter from progressions neighbors cut to to growth. what that

So on that is fits. product strong great Nextdoor, that have we signal a market

as in thing engaged, and second neighbors, best-in-class people is come a The line. they're verified

But a So ratio just also also, verified WAU neighbor to little over that the ratios down over while have stayed up XX%. has say XX%.

strong, means effect any us overall about for that's now. new a neighbors quarter paid X right a no strong verified we And from that's growth. that So add And halo signal with million for what etc. marketing,

Going because important just to down been people them valuable. is true from session, in platform. is also of growth. was in why the couple And that's impressions come driving going factor that's for Session WAU front a key the are that some of and go to going as WAU impressions we're And content platform, what's are growth because quarters. we're revenue. the putting we're sessions get on and has because that's deeper more to that get the funnel you you And to them to driving, last to

AI perspective. of And investment we've that's the output an ML the all from done of

couple about the All talked continue then we there. years. retention standpoint. in we WAU of the no ongoing we have of to growth growth. session in continues same changes see to cohorts the sticking from terms strength outpace past There's finally, around So are how as And seen retention, a

strong you Once on Nextdoor. you stick value get really again, we you, and around that signal. So find

QX, of of that ourselves. a to are continuing we and probably and funnel forward look ahead focus putting want WAU it's right our driving is get QX similar into to for drive year, expectation QX now to the lot top growth session As depth. But don't the of on part back of going to we we about be

year the can drive revenue and to the the for kind the that's see you're So math we know overall it QX you would growth by the year, type to half into the guidance growth, to QX. of company, but high giving that get in of for if back we full starts get fact accelerate that revenue us the that into we'll confidence continue gave time you rates the doing mid-teens, for we the growth even you teens exit that

Thank you, Sarah. Appreciate it.

You're welcome. Thank you.

Our Please next Fitzgerald Wells question Brian comes from with Fargo. proceed.

are Thanks. expected A full remind of manager? for the Quick couple advertisers you side. one, advertising on what stand can do you us migration the today ads the existing in timeline to terms any is Where at of at follow-up? the adept and get accelerating more as I advertisers of of using And tools. have ad doing seeing get then and more that, more you kind transition adept you more dynamics and a

Sure, great.

and that you app all, actual interface, of the advertiser remember ads hit connector all about now manager, standalone first that's Okay, it's efforts. on reducing

do super we business. do easy and to to make ad an you what to So come growing it out how then needs it get your Nextdoor, for to create

existing everyone the The any to size, point next we platform. of could where customer point the migrating couple can our self-serve. including get And good on the businesses ad big now to self-serve over goal now base. agencies, at now quarter, news our that That was we're of where it a started quarters, is in

our to straight. base, migrating net new get moving sorry make filter current -- we're net can news And from now their that content. customers sure hearts So I

component which it, they as can like know remarks sell. of So of just DM, precise have where the a frankly, targeting. simplification. the about better that a done they couple of them more We're better clients. They performance be mid-market They is, they're prepared quarters. like should to metrics, over In currently reporting. lot seeing next able in neighborhoods, solar powerful They their Arizona be it's talks example and penetration, What the a to of need tool. my that go exactly very give good because they

platforms. really they do on on differentiated Nextdoor. as that as They And other view that well can't

So that's Nextdoor ads manager.

is which ad piece, The the advertiser about other piece, outcomes. Nextdoor is that's back-end which server, our end back

in look over we better? how progress delivered And bringing and be not will mid-market we've So ads U.S. QX, it's then sure it. XXXX forward we bring now how of on the perform the do of XXX% enterprises. terms we all about into SMB There of large demands do we finally QX, in and as make the QX,

it Why order about we're doing is in that risk. really just managing

what with think is excited. of seeing a we're I lot Next actually now makes right quite us that stuff

As first of latency all, down. I prior on mentioned, the gone has question, just

else's of call do put So miss as a don't to or right front out we means the server having platform not someone ad through an to in to ad feed, you. scrolling ad that that, you're opportunity

So that's from good standpoint. a revenue

delivery. better is Second, we ad can and targeting do a much job of optimizing ad

right want ad advert the morning bakery the plumber in experts. an when again, the ad you you time, the they've what versus from for local to see like going do is need flooring the local at do going making from So right that out local the sure or the when got

what the does neighbor finally, from perspective, neighbor then relevance, why. and see again a And ad

to as like we back exciting. pretty fact the up show year growth, that get at really our The we're was momentum finally The looking over And year QX feel of in on these quarter results. ad to super we're acceleration the year the moves. a was be the it's really part happy So for making grateful backend team. is really to into I us. phenomenal. starting to and tech big side I'm

Got that, the advertiser prior it. shared rates? And XX the calls, just Any latest numbers then retention update or you've levels on revenue for advertisers. your top retention

terms of look advertisers. through of stable to retention you trends particular we QX in what improving managed would at if saw overall, quarter. mean advertiser I call kind trends, retention In the we

directly So the before. was largest numbers advertisers amongst change folks that high, a team not stable, really still that more self-serve given Retention say. would touching you the of our we've is sales I ton from

is that good. So

financial under like but little makes home And They're I we know of think terms that say still services, in upbeat, they're the more really I'd strain. them. us final for what lot of verticals we a are not perform a spending, bit but thing services, really there

the on, So latent of with to we verticals these ago as lot and to back there looks that begin servicing healthcare some other a get verticals government can like for makes that is capacity a normal. return excited that hopefully the year growth to fact newer weren't now see really me so we

feeling well. yeah, retention advertiser overall, as standpoint on So good an from

Awesome. Thanks, it. Sarah. Really appreciate

Thank you.

Mark from Mahaney comes question next proceed. with Evercore. Please Our

also two overall since How have environment? quick like just the stable, recover, of that? secondly, seen And the the particular two? weakness you the starting advertising I Thank last then the you Thanks. beginning call just would out verticals, any just Did over and years, questions. in you. comment you've to Is that anything change kind on year describe you there already or of soft strength it verticals? could

first Mike Why on the should jump in then take and the definitely second. I don't

[indiscernible] where first got overall month the So QX ad each from of quarter, market, continued seen the And -- actually a like too in a market month in new get quarter. felt year-over-year away. that's we've it perspective. a don't better But definitely carried growth the better

think probably say the degree people advertisers manifested I the may would bit that recession to optimistic. just more feared. don't same Generally, has have a I little

I talk when ready full secondly, think advertising I funnel they're to more marketers, again. to do

to way down Now they better dollars to do the But all brands do mix the they of performance to able to need a marketing. be get that. want to clearly

recognition, to feel performance create if they all. They've the only of consumer if back trap kind of spending kind come been that They're brand. they're able they're of need recognizing brand marketing this sort end going a a funnel, at to to full to that emotional be the call to to feels the the in in of

we means a for of And [indiscernible] about resonated groomer. people. know they're in they're were high, about like around ability then of community live, I to showing where high or and up a think we've in conversation struck show kind a dog showing up really Nextdoor, a that's real plumber about Nextdoor's authentically, up say if of targeting they a you the heard around about local, for lot is And mode looking think we're a intent of about chord. here, comments looking spending, kind audience We really seems a for lot

finally, we and customized scale ad also messaging unique And this can fact very the do that interesting. local very then is

incrementality relative is to high the platforms. so, And other quite

think reason that's other to about a I agencies on talked because take scale are work, the get the Mike vertical lot why starting let more So the earlier, business you conversation. of Michael, I'll as

-- some to could add, Sarah strengthen ad record some mean, logos. in There I as if recovery well, mentioned, seen is of but in market. mid-market we've a businesses Yeah, our number as added as just choppiness we we've continue seen the new I

also which add to saw quarter. to there, business something We to this continuing is growth, the new see momentum the return and SMB we're to discussion

pleased per average but to pressure some advertiser, and still retain there's And acquire spend with really on ability are our advertisers.

as advertisers the manage be group is our a think it business there being results. spending willing be channel yielding has I to and advertisers been investments agency We of that to part really in our And to improve their demand of there. and businesses. advertising speaks to diversification drive into portfolio, own out

help telco, And just fast pets tech talked are verticals growth their so, areas to with for spending an about area in path very really of services home well. as and in we real us in the allows us, has like in to travel, back healthcare, been a performing for And them and us estate. services, financial then work way that advertisers to that strong

-- aspect just that their working partners the other underlying things and of to need the businesses. in in based advertiser awareness think on performance, being advertising having performance versus to our in they I brand own spend drive areas, multiple capabilities with ways then that is platform like And the

you, thank you, Thank Mike. Okay, Sarah.

Mark. Thanks,

for all questions waiting no Thank There you queue. questions. questions at [Operator your time. this are currently Instructions] more no There are in waiting

for So I'll to over closing remarks. Friar, any conference the Sarah back pass CEO

much. Sierra, Thanks, thank you so for everyone joining.

across the pleased points. all margin key growing of EBITDA at to see revenue year-over-year metrics growth our of X with improvement and the said our WAU X%, I As we're top of call, XX%, growing growth really return

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really for estate think I talked time. bit [indiscernible] about verticals like little we improve will over perform We real well them. a the that

AI, latent So, intent our on audience, then And Nextdoor knowledge and opportunity with course, there. everywhere. people labeled real there's data, the graph high is neighborhoods local capacity been of

on growing product opportunity because want thank the towards for quarter build. and in improvement We're So for long-term of revenue. I on the WAU to great focused and for And we year in this you a business. the track also while to a margin are huge say team momentum the terms revenue laser full growth investing was the

So forward look any questions to talk thanks and days. in your time. Thanks you XX We lot. up we'll to follow a for

will That you your for all today's Thank conference participation. call. conclude

may You lines. your now disconnect