A week ago, Nextdoor Holdings, Inc. (NYSE:KIND) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Revenues and losses per share were both better than expected, with revenues of US$53m leading estimates by 4.6%. Statutory losses were smaller than the analystsexpected, coming in at US$0.07 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nextdoor Holdings after the latest results.

See our latest analysis for Nextdoor Holdings

After the latest results, the six analysts covering Nextdoor Holdings are now predicting revenues of US$232.6m in 2024. If met, this would reflect an okay 4.9% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to US$0.26. Before this earnings announcement, the analysts had been modelling revenues of US$231.9m and losses of US$0.30 per share in 2024. Although the revenue estimates have not really changed Nextdoor Holdings'future looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.

The average price target held steady at US$2.69, seeming to indicate that business is performing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Nextdoor Holdings analyst has a price target of US$3.50 per share, while the most pessimistic values it at US$2.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Nextdoor Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nextdoor Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$2.69, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Nextdoor Holdings going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Nextdoor Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.