Shares of neighborhood social network Nextdoor (NYSE:KIND) jumped 8.87% in the after-market session after the company reported first-quarter results that exceeded analysts' revenue estimates. Weekly Active Users and adjusted EBITDA also beat. In addition, revenue guidance for the next quarter came in above Consensus, and adjusted EBITDA was inline. While absolute revenue growth levels are somewhat muted, these results were strong overall.
What is the market telling us:
Nextdoor's shares are somewhat volatile and over the last year have had 60 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Nextdoor is up 7% since the beginning of the year, but at $2.22 per share it is still trading 44.8% below its 52-week high of $4.01 from July 2022. Investors who bought $1,000 worth of Nextdoor's shares at the IPO in March 2021 would now be looking at an investment worth $221.50.
Is now the time to buy Nextdoor? Access our full analysis of the earnings results here, it's free.