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Dow Jones Newswires

Aug. 9, 2022, 5:39 p.m. EDT

Nextdoor Shares Fall 11% On Lower FY Revenue Outlook

By Kathryn Hardison

Nextdoor Holdings Inc. shares fell 11% to $3.20 in after-hours trading Tuesday after it cut its full-year revenue outlook and said it would limit hiring.

The holding company for a neighborhood network platform said net loss was $37 million, or 10 cents a share, during the recent period. Second-quarter revenue grew 19% to $55 million, driven by advertising demand, while weekly active users grew 26% from a year ago.

Nextdoor said it expects third-quarter revenue between $53 million and $55 million, and it lowered its full-year revenue outlook based on macroeconomic headwinds. It now expects full-year revenue to be $220 million to $225 million, compared with guidance issued in March for $254 million to $256 million in revenue.

Nextdoor said in a letter to shareholders that it needs to sharpen its focus on weekly active users and revenue growth initiatives, and to limit hiring to its most critical roles.

Write to Kathryn Hardison at kathryn.hardison@wsj.com

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