Nextdoor Holdings, Inc. Q1 FY2026 earnings call

Nirav stated Q1 was a standout quarter with platform WOW at an all - time high, revenue up 14% year - over - year, and adjusted EBITDA nearly break - even. They made progress across key drivers: continued to strengthen the integrity of the neighborhood graph by expanding verification for neighbors and local businesses; revitalized the core community experience with features like threaded conversations, pinned comments, smarter linking, richer media in the feed, and downranking self - promotional content; showed progress in monetization pathways with local service providers seeing strong engagement and conversion. Priorities for Q2 include improving content relevance, deepening engagement, expanding recommendations, strengthening distribution, and advancing AI and machine learning capabilities. AI is seen as a key advantage as verified human content becomes more valuable in an AI - driven world.

Platform weekly active users (WOW) reached an all - time high of $22.3 million. Revenue was $62 million, up 14% year - over - year. Adjusted EBITDA was nearly break - even, representing a $9 million improvement year - over - year. The self - serve channel grew 28% year - on - year and now comprises roughly 68% of total revenue. Revenue growth is broad - based with every major monetization channel contributing to growth.

For Q2 2026, Nextdoor expects revenue of $71 to $73 million and adjusted EBITDA of $4 to $6 million. Based on the strong start to the year, they are raising full - year expectations. Now, they expect approximately 10% revenue growth for the full year and an adjusted EBITDA margin in the high single - digit range, up from mid - single - digit margin guidance from the last earnings call.

Statements made are forward - looking and subject to a variety of risks and uncertainties. Actual results could differ materially from expectations reflected in forward - looking statements. Refer to SEC filings and the earnings release for a discussion of material risks and other important factors that could affect actual results.

Q: About platform WOW turnaround and strategy to grow engaged audience; A: Focus on relevant content. Addressing issues like neighborhoods with less liquidity, up - leveling content quality, and investing in machine learning to personalize the experience. Also, growing the number of unique contributors which leads to more content and positive effects on the platform.

Q: Revisiting AI and Nextdoor feed evolution; A: Feed to be more personalized using AI. Experimenting with using AI to summarize the feed. Exploring AI across other surfaces like messaging inbox or groups.

Q: New features resonating and advertiser growth; A: Feature Ask is resonating with users. Advertiser growth is broad - based with strong performance in categories like home services. Direct sales business with larger advertisers is a strong growth area, and there's broad - based portfolio strengths across various categories including telco, tech, healthcare, financial services, etc.

Q: Local business inventory traction and AI features engagement; A: Local business inventory has a win - win aspect for local businesses, neighbors, and Nextdoor. AI feature Ask has encouraging engagement with increased engagement, more comments, and higher - quality conversations. Monetization is not near - term for Ask, but driving engagement is.

Q: Path to profitability and free cash flow; A: Revenue is primary driver. The business is showing operating leverage. Also, leveraging AI and other technology advances for cost optimization while continuing to focus on revenue growth.