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Neighborhood social network Nextdoor reported revenue of $55 million in the second quarter of 2022, up 19% from the same period last year.
Nextdoor revealed that it was going public last July, entering into a definitive agreement with Khosla Ventures Acquisition Co. II, a special purpose acquisition company sponsored by an affiliate of Khosla Ventures.
The company said its revenue for the period reflected continued engagement by its users, more ad impressions served and strength from midmarket advertisers across a range of campaign objectives.
Nextdoor saw growth in a range of verticals including home services, technology, telecommunications and travel, offset by slowdowns in finance, quick-serve restaurants, real estate and retail, citing “a reflection of rising macroeconomic uncertainty, inflation and labor shortages.”
The company added, “We saw demand from customers of all sizes and in all stages of the advertising funnel, and greater than 60% of managed advertiser spend in Q2 was geared toward conversion-focused campaigns.”
The platform reported 36.9 million weekly active users, up 26% from the second quarter of 2021, saying that international WAU rose 51% year-over-year, led by Canada and Europe, particularly the U.K., while the company saw increases in session frequency in the U.S.
Nextdoor also shared its outlook for the third quarter and the full year, explaining in its letter to shareholders, “In Q2, the global economy experienced increasingly complex macroeconomic conditions that affected our customers and markets alike. The continuing war in Ukraine, supply chain bottlenecks, rising interest rates, record levels of inflation and increased risk of a recession have led to heightened levels of caution across industries as neighbors and businesses plan for an uncertain future. While our long-term strategy and priorities remain the same—to focus on initiatives that grow our base of neighbors and organizations, increase engagement on the platform and drive sustained revenue growth—we recognize the need to adapt to the world around us. As we look ahead to the next six to 12 months, we believe this uncertainty is likely to continue impacting advertisers and are expecting to see some tightening of budgets. That said, we believe that the progress we have made in diversifying our advertiser base and campaign objectives will serve us well.”
The company projected revenue of $53 million to $55 million for the third quarter of 2022 and $220 million to $225 million for the full year.
Nextdoor said in a statement, “Nextdoor’s Q2 results reflect both progress and remaining potential. We know that when times get tough, Nextdoor shows up for neighbors, businesses and public agencies globally. In times of need, neighbors increasingly rely on Nextdoor—whether it’s to find a side hustle to pay for accelerating rental costs, to use our classifieds section to grab those free baby clothes, to help food raise for neighbors in need of an extra bag of groceries or to aggregate community members in support of a local cause. This reinforces our belief in Nextdoor’s purpose to cultivate a kinder world where everyone has a neighborhood to rely on.”
