Nextdoor Holdings, Inc.

We're probably going to have two or three. Most probably three, so. Good afternoon. Thank you for attending the next door second quarter 2024 earnings call. My name is Cameron, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, John T. Williams, head of investor relations. You may proceed.

Thank you, operator. I'm John T. Williams, Head of Investor Relations. Good afternoon, and thank you for joining us to review Nextdoor's second quarter 2024 financial results. With us on the call today are Nirav Tolia, Chief Executive Officer, and Matt Anderson, Chief Financial Officer. During this call, we may make statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website and in the investor relations section of our website, as well as the risks and other important factors discussed in today's earnings release. Additionally, non-GAAP financial measures will be discussed on today's conference call. A reconciliation of these measures to their most directly comparable GAAP financial measures can be found in the Q2 2024 shareholder letter released today. With that, I'd like to turn the call over to Nirav.

Thank you, John T., and good afternoon, everyone. I'm happy to be here with you today to discuss our second quarter financial results and outlook. We had another productive quarter and have made solid progress since we last spoke in May. Some of that progress is visible in our Q2 results and some of it is embedded in our outlook for Q3 and the rest of 2024. But the most important work, revitalizing our core product, will become more clear in 2025. Our team is working to adopt the founder's mentality we talked about last quarter and is committed to taking on the challenge of transforming our user experience for the long term while remaining focused on execution in 2024. This effort is evident in our Q2 performance and results. There are two areas in particular that I would like to highlight. First, we are driving growth. Revenue grew 11% year over year in Q2. Weekly active users, or WOW, reached more than 45 million. The new capabilities of our next-door ads platform played an important role here as it enabled greater self-serve adoption, better advertiser performance, and increased revenue retention. Second, we are doing more with less. More effective allocation of resources plus a reduction in costs resulted in better employee productivity and margins. In Q2, we realized 23 percentage points of year-over-year adjusted EBITDA margin improvement, giving us the confidence to raise our full-year financial guidance. Matt will discuss this in greater detail shortly. Now, I would like to step back from the quarter and take a longer-term view. which begins with our clear and unwavering commitment to local, an area we believe represents a massive business opportunity. Building the essential neighborhood network is the focus of everything we do, and our goal is to make Nextdoor a core part of everyone's local life. This ambition will require a complete transformation of our user experience, and we call this effort NEXT. By combining our deep expertise in local with a new and significantly improved user experience, we know that we can build a product that will delight users and advertisers, drive profitable growth, and increase shareholder value over time. As I mentioned above, we are approaching this challenge with a founder's mentality, which is at the core of everything we're doing both philosophically and practically. As a reminder, the founder's mentality has three defining traits. The first is to define a clear and ambitious mission that provides us with focus and purpose. For Nextdoor, that means leveraging the power of technology to create the essential neighborhood network that enables stronger, safer, and happier places to call home. The second is to have an obsession with the details, particularly around our user experience. We believe that the magic is in the details and have redoubled our efforts to create a product that delights users and advertisers Every single time they engage with next door. The third and final trait is to adopt an owner's mindset which drives urgency and a bias towards action. We want to be lean hungry and ready to do more with less as demonstrated by our improved employee productivity and progress towards positive free cash flow. There are a few people who exemplify the founder's mentality as well as the four executives who we recently added to our board of directors. Marissa Meyer, Neeraj Shah, Robert Homan, and Alisa Steele. They each bring a passion for our mission, focus on product, and experience operating technology companies at scale. We are looking forward to working with them to achieve our potential. And that potential is significant. We have a large and engaged user base, differentiated first-party data, and a growing list of advertisers who are realizing increased ROI. I'm encouraged by the work we've done since I returned to CEO, but will note again that our most significant mechanism for generating long-term benefit is the revitalization of our core product. And it's still very early in that journey. Unlocking our platform's full value will require patience and resolve. And this transformation process, as with most, will be neither linear nor straightforward. As such, we do not expect to see meaningful signs of product-related progress until mid 2025. We are approaching this challenge with the right blend of humility and optimism. The effort will be substantial, but the prize on the other side is incredibly worthwhile. a revitalized product, a renewed growth trajectory, and a reinvigorated company. With that, I'll turn it over to Matt to discuss our financial results.