What To Expect From Nextdoor’s (KIND) Q3 Earnings

Neighborhood social network Nextdoor (NYSE:KIND) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

Nextdoor beat analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $63.29 million, up 11.3% year on year. It was a very strong quarter for the company, with optimistic EBITDA guidance for the next quarter and an impressive beat of analysts’ EBITDA estimates. It reported 45.1 million monthly active users, up 8.4% 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 11.3% year on year to $62.44 million, improving from the 4% 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 5.2% on average.

Looking at Nextdoor’s peers in the social networking segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 67.9%, beating analysts’ expectations by 10.6%, and Snap reported revenues up 15.5%, topping estimates by 1.1%. Reddit’s stock price was unchanged after the results, and Snap’s price followed a similar reaction.

Read our full analysis of Reddit’s results here and Snap’s results here.

There has been positive sentiment among investors in the social networking segment, with share prices up 6.3% on average over the last month. Nextdoor’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $2.55 (compared to the current share price of $2.45).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.