Nextdoor’s second quarter saw year-over-year improvements in both revenue and profitability, with management attributing results to ongoing transformation efforts centered on product upgrades, operational discipline, and enhanced advertiser value. CEO Nirav Tolia highlighted the recent launch of a rebuilt platform emphasizing local news, real-time alerts, and an AI-powered assistant, which together are designed to drive higher user engagement. Management pointed to the early success of these initiatives, such as a significant increase in Net Promoter Score, as proof points for their product direction. CFO Matt Anderson cited momentum in the self-serve advertising channel and improved cost efficiency as factors supporting the quarter’s operational gains.
Shares of neighborhood social network Nextdoor (NYSE:KIND) fell 4.5% in the afternoon session after a Citigroup analyst lowered the price target on the stock, citing potential near-term challenges. Analyst Jamesmichael Sherman-Lewis adjusted the price target down to $2.20 from $2.40, an 8.33% decrease. Despite the lower target, the firm kept its "Neutral" rating on Nextdoor's shares. This action suggested that while the bank's view on the company's performance remained steady, it saw less upside in the stock's price in the near future. The move came at a time when the general investor mood appeared fragile, with concerns that some stock valuations may have run too far.
