Nextdoor (KIND) Q2 Earnings: What To Expect

Adam Hejl /
2023/08/07 5:37 am EDT

Neighborhood social network Nextdoor (NYSE:KIND) will be reporting earnings tomorrow after the bell. Here's what to expect.

Last quarter Nextdoor reported revenues of $49.8 million, down 2.41% year on year, beating analyst revenue expectations by 8.34%. It was a strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter. The company reported 42.4 million daily active users, up 15.5% year on year.

Is Nextdoor buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Nextdoor's revenue to decline 2.07% year on year to $53.4 million, a further deceleration on the 19.1% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 per share.

Nextdoor Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.19%.

Looking at Nextdoor's peers in the social networking segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Pinterest delivered top-line growth of 6.32% year on year, beating analyst estimates by 1.78%, and Meta reported revenues up 11% year on year, exceeding estimates by 3.12%. Pinterest traded down 4.07% on the results, Meta was up 6.44%. Read our full analysis of Pinterest's results here and Meta's results here.

There has been positive sentiment among investors in the social networking segment, with the stocks up on average 4.95% over the last month. Nextdoor is down 7.43% during the same time, and is heading into the earnings with analyst price target of $3.3, compared to share price of $2.9.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.