Neighborhood social network Nextdoor (NYSE:KIND) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Nextdoor beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $65.61 million, up 17% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 45.9 million monthly active users, up 13.6% 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 15.5% year on year to $64.18 million, improving from the 4.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Analysts covering the company have generally 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 5.7% on average.
Looking at Nextdoor’s peers in the social networking segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Snap delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 0.6%, and Pinterest reported revenues up 17.6%, topping estimates by 1.2%. Snap traded down 8.6% following the results while Pinterest was up 19.1%.
Read our full analysis of Snap’s results here and Pinterest’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the social networking stocks have shown solid performance, the group has generally underperformed, with share prices down 3.5% on average over the last month. Nextdoor is up 2% during the same time and is heading into earnings with an average analyst price target of $3.09 (compared to the current share price of $2.55).
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