Neighborhood social network Nextdoor (NYSE:KIND) will be reporting earnings tomorrow afternoon. Here's what to look for.
Nextdoor beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $53.15 million, up 6.8% year on year. It was a decent quarter for the company, with optimistic revenue guidance for the next quarter but slow revenue growth. It reported 43.43 million monthly active users, up 2.4% year on year.
Is Nextdoor a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Nextdoor's revenue to grow 2.8% year on year to $58.51 million, slowing from the 4.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nextdoor has missed Wall Street's revenue estimates twice over the last two years.
Looking at Nextdoor's peers in the social networking segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 22.1%, beating analysts' expectations by 2%, and Pinterest reported revenues up 20.6%, in line with consensus estimates. Meta traded up 5% following the results while Pinterest was down 14.5%.
Read our full analysis of Meta's results here and Pinterest's results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the social networking stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. Nextdoor is down 4.5% during the same time and is heading into earnings with an average analyst price target of $2.6 (compared to the current share price of $2.55).
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