Citi analyst Ronald Josey maintained a Hold rating on Nextdoor Holdings (KIND – Research Report) yesterday and set a price target of $3.30.
Ronald Josey has given his Hold rating due to a combination of factors concerning Nextdoor Holdings. Despite the company’s 3Q23 Weekly Active Users (WAUs) of 40.4M, which represented a 5% year-on-year increase but a 3% quarter-on-quarter decrease, and revenue of $56.1 million, the results were approximately 4% below Josey’s projections. Additionally, the company’s EBITDA loss of $19.8 million was relatively in line with Josey’s expectations. The report also highlights that although the company’s session depth WAU growth improved by 30% year-on-year, the global Average Revenue Per User (ARPU) of $1.39 dropped by 1% year-on-year.
Furthermore, Nextdoor’s 4Q23 revenue guidance was approximately 17% below consensus, primarily due to weakness in three core verticals – Home Services, Financial Services, and Real Estate. This was also partly attributed to macroeconomic factors. The company also announced a 25% Reduction in Force (RIF) with the goal of achieving a quarterly free cash flow breakeven in 2025. In addition to these factors, Nextdoor’s Chief Financial Officer, Mike Doyle, is stepping down and will be replaced by Matt Anderson, who is currently the Head of Finance & Strategy at Nextdoor. These factors combined have influenced Ronald Josey’s decision to rate Nextdoor Holdings’ stock with a Hold rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $2.20 price target.
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Nextdoor Holdings (KIND) Company Description:
Khosla Ventures Acquisition Co II is a blank check company.
