Neighborhood social network Nextdoor (NYSE: KIND) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Nextdoor beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $54.18 million, up 1.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of weekly active users estimates. It reported 46.1 million monthly active users, up 6.2% 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 decline 3.1% year on year to $61.34 million, a reversal from the 11.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.4% on average.
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. Reddit delivered year-on-year revenue growth of 77.7%, beating analysts’ expectations by 17.2%, and Meta reported revenues up 21.6%, topping estimates by 6%. Reddit traded up 16.9% following the results while Meta was also up 11.2%.
Read our full analysis of Reddit’s results here and Meta’s results here.
Investors in the social networking segment have had steady hands going into earnings, with share prices flat over the last month. Nextdoor is up 16% during the same time and is heading into earnings with an average analyst price target of $2.01 (compared to the current share price of $1.89).
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