Nextdoor (KIND) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2023/05/08 4:48 am EDT

Neighborhood social network Nextdoor (NYSE:KIND) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Nextdoor reported revenues of $53.3 million, down 10.2% year on year, beating analyst revenue expectations by 4.94%. It was a decent quarter for the company, with a solid beat of analyst estimates but slow revenue growth. The company reported 40 million daily active users, up 11.1% 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 9.92% year on year to $45.9 million, a further deceleration on the 48.3% 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 3.36%.

Looking at Nextdoor's peers in the social networking segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Snap's revenues decreased 6.97% year on year, missing analyst estimates by 2.19% and Pinterest reported revenues up 4.82% year on year, exceeding estimates by 1.68%. Snap traded down 20.8% on the results, Pinterest was down 8.32%. Read our full analysis of Snap's results here and Pinterest's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the social networking stocks have fared somewhat better, they have not been spared, with share price declining 4.9% over the last month. Nextdoor is down 6.48% during the same time, and is heading into the earnings with analyst price target of $2.9, compared to share price of $2.02.

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.