Executive Summary

Q1 2025 revenue was $54.2M (+2% y/y) with WAU of 46.1M (+6% y/y); GAAP net loss improved to $(22.0)M (net margin (41)%) and Adjusted EBITDA improved to $(9.2)M (margin (17)%) . Sequentially, revenue declined from $65.2M in Q4 2024 given seasonality and ongoing product transition work .
Management previewed “NEXT,” a full product transformation centered on news, alerts, and AI-driven recommendations; full U.S. launch targeted by late July 2025, with platform WAU (22.5M, +5% y/y) to become the key disclosed user metric starting Q2 .
Q2 outlook: revenue ~ $60M and Adjusted EBITDA ~ $(10)M (margin ~(17)%); company continues to expect 1H25 revenue approximately flat y/y, with Q2 OpEx approximately flat y/y (ex. Q2’24 restructuring) and lower Q2 ad impression supply due to feed design updates focused on long-term retention .
Mix and monetization: large advertiser spend was down y/y as budgets shift programmatic; self-serve accounted for over 60% of revenue, CPC fell ~20% y/y, and click-optimization improved CTR ~50% for large advertisers; programmatic enablement is expected later in 2025 .

What Went Well and What Went Wrong

What Went Well

Margin and cash discipline: Adj. EBITDA loss improved to $(9.2)M (margin (17)%), net loss improved to $(22.0)M, and operating cash flow was positive; OpEx fell ~8% y/y; cash & securities ended at $418M; repurchased 4.7M shares in Q1 .
Product momentum toward NEXT: detailed pillars (news, alerts, AI recommendations) with a late July launch target; CEO: “NEXT is more than a redesign. It’s a refounding of our vision” .
Scaling Ads Platform performance: self-serve >60% of revenue; CPC down ~20% y/y; click-optimization drove ~50% CTR lift for large advertisers; 100% of U.S. large advertisers now on the ad server as of early May .

What Went Wrong

Large advertiser softness: large advertiser spend was down y/y as budgets shift to programmatic, muting top-line despite double-digit growth across other channels .
Lower impression supply ahead: Q2 ad impression supply to be lower due to feed redesign; Q2 revenue guided to ~$60M and Adj. EBITDA to ~$(10)M despite self-serve momentum .
Continued losses (though improving): GAAP net loss of $(22.0)M; Adj. EBITDA still negative $(9.2)M; profitability remains a medium-term objective .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$65.6	$65.2	$54.2
GAAP Net Income ($M)	$(14.9)	$(12.1)	$(22.0)
Net Income Margin (%)	(23)%	N/A	(41)%
Adjusted EBITDA ($M)	$(1.3)	$3.0	$(9.2)
Adjusted EBITDA Margin (%)	(2)%	5%	(17)%
WAU (Millions)	45.9	45.9	46.1
Platform WAU (Millions)	N/A	N/A	22.5

KPIs and operating notes:

Self-serve revenue mix: >60% (Q1)
CPC: ~20% y/y reduction (Q1)
CTR lift (click-optimization): ~50% for large advertisers (Q1); 82% in Q3 2024 self-serve use-cases
Cash, cash equivalents & marketable securities ($M): $425 (Q3), $427 (Q4), $418 (Q1)

Segment breakdown: Nextdoor reports a single consolidated advertising revenue stream; no segment disclosures in the Q1 press release/8-K .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 2025	N/A	~$60M	New
Adjusted EBITDA	Q2 2025	N/A	~$(10)M; margin ~(17)%	New
Operating Expenses (y/y)	Q2 2025	N/A	~flat y/y (ex. Q2’24 restructuring)	New
Revenue	1H 2025	“Approximately flat y/y” (Feb call)	“Still expect…approximately flat y/y”	Maintained
Ad impression supply	Q2 2025	N/A	“Lower…due to NEXT feed design updates”	New

Management reiterated that programmatic enablement is expected later in 2025 and should support a return to revenue growth alongside broader adoption of the Ads Platform .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
NEXT product transformation	Vision and pillars; discovery-centric use cases; design leadership added	Detailed preview of news, alerts, AI recommendations; launch targeted late July	Accelerating to execution
AI/“Ask a Neighbor”	Discovery and intent pairing emphasized	Proprietary LLM inputs from neighbor content; faster task completion; initial rollout to 5 DMAs	Building features and use-cases
Programmatic enablement	Accelerating SSP/DSP integration (Q4)	Clear demand; enabled in parallel with NEXT; expected contribution later 2025	Implementation in progress
User metrics disclosure	N/A	Transition to “Platform WAU” (22.5M, +5% y/y); platform-centric value	Measure change to align with strategy
Advertiser mix/demand	Self-serve scaling, perf improvements (Q3/Q4)	Self-serve >60% revenue; large advertisers down y/y pending programmatic	Mix shifting to self-serve; fixing access for large buyers
Alerts/Notifications	Upgrade planned; crisis utility reiterated	Hyper-local, urgency-tiered alerts; better targeting and UX	Stronger product pillar

Management Commentary

“NEXT is more than a redesign. It’s a refounding of our vision…to build a substantially enhanced offering…for neighbors, advertisers and shareholders.” — CEO, prepared remarks .
“We expect to deliver a completely new Nextdoor user experience by late July 2025.” — CEO, press release and call .
“Self-serve adoption rose, accounting for over 60% of revenue in Q1...we drove down cost per click by 20% y/y…large advertisers…adopt click optimization [seeing] ~50% improvement in CTR.” — CFO .
“We anticipate enabling programmatic ad buying later this year…which…should support a return to revenue growth.” — CFO .
“Platform WAU will be our key user metric…Beginning with Q2, we will report only Platform WAU.” — CFO .

Q&A Highlights

Monetization surfaces post-NEXT: beyond feed ads, management sees opportunities in the new Alerts surface and AI-agentic “Faves” flows that connect intent to completion — three vectors: more supply, new surfaces, and agentic commerce experiences .
Programmatic rollout: demand confirmed; relationships being stood up; can proceed in parallel with NEXT; expected to contribute later in 2025 .
Alerts strategy: hyper-local, urgency-tiered (green/yellow/red) with authoritative sources and geospatial targeting; expected to deepen engagement and improve relevance of notifications .
Awareness and spend: no large marketing push; will lean on owned channels/notifications and earned media to drive awareness of the new UI/UX .
Platform WAU rationale: aligns with in-app experiences and where value is created/monetized; advertisers favor the contemporary structured experience that NEXT brings .

Estimates Context

S&P Global consensus for Q1 2025 and Q2 2025 was unavailable via our data connection; comparisons to Wall Street estimates cannot be provided here.
Versus company guidance (from Feb call): Q1 revenue was guided to ~$53M and Adj. EBITDA to ~$(13)M; actuals were $54.2M and $(9.2)M, respectively — a beat vs internal guidance on both revenue and profitability .

Key Takeaways for Investors

Execution pivot: The July NEXT launch is the near-term catalyst; watch engagement/retention signals (platform WAU, session frequency) as leading indicators of supply and monetization recovery .
Mix matters: Self-serve is >60% of revenue and performing well (CPC down, CTR up); programmatic enablement is the key unlock to reaccelerate large-advertiser budgets in 2H25+ .
Near-term softness, long-term setup: Q2 guide (~$60M rev, ~$(10)M Adj. EBITDA, lower impressions) reflects deliberate product choices to improve retention; sustained self-serve traction and Ads Platform adoption de-risk the path to reacceleration post-launch .
Cost discipline and balance sheet: OpEx down ~8% y/y; positive OCF again; $418M cash & securities provide ample runway during the transition; share repurchases continue .
What to monitor: (1) platform WAU trajectory post-launch; (2) advertiser adoption of new surfaces (Alerts, AI “Faves”); (3) timing/impact of programmatic demand; (4) Adj. EBITDA leverage as impression supply normalizes .

Additional Primary Sources (Q1-related press)

Nextdoor Reports First Quarter 2025 Results (press release) — detailed Q1 metrics and margin improvements .
8-K Item 2.02 filing with Q1 2025 Investor Update & Press Release — detailed product and financial slides, outlook .
Date announcement and exec changes: Q1 results timing (Apr 9, 2025) and CRO appointment (Jan 15, 2025) .

Nextdoor Holdings, Inc. (KIND)·Q1 2025 Earnings Summary