The neighborhood social app Nextdoor announced a staffing cut of 25% and the replacement of its CFO as the company seeks to shore up its balance sheet.
The disclosures were made in Nextdoor’s Q3 2023 earnings report, showing modest revenue growth amid difficult times in the ad business, but continued steep losses.
Nextdoor, with a free general classifieds section and a map-based real estate agent ad business, posted revenue of $56 million, up 4% year on year, and a net loss of $38 million versus $35 million in Q2 2023.
Since going public in November 2021, Nextdoor has never posted a profit. And Nextdoor said the current advertising market was making the path to black ink even harder.
The company didn’t specify how many workers would be laid off, but at the end of 2022, it reported 704 employees worldwide, 25% of which would be 176.
The company projected the cuts would save it up to $60 million annually. “This reduction in our team is the hardest decision we have had to make at Nextdoor,” CEO Sarah Friar wrote in the earnings announcement. “While … our business is financially strong with a healthy balance sheet, we must follow through on our commitment to our shareholders.”
She said the company aimed to be free cash flow breakeven, on a quarterly basis, by the end of 2025.
Nextdoor also announced a new CFO, Matt Anderson, who has been with the company four years, most recently as head of finance and strategy. Before Nextdoor, Anderson held a senior financial position at the payments app company Square and before that he worked several years in investment banking.
Anderson replaces Mike Doyle, who worked at Nextdoor more than five years, and helped manage its debut on the New York Stock Exchange through a reverse merger with a public shell company.
Reporting other quarterly metrics, Nextdoor touted 6% y-o-y growth in weekly active users to 40.4 million, and said it ended the quarter with approximately 85 million verified neighbors after achieving the largest addition of organic verified neighbors in any other quarter.