By Alex Wilhelm / March 1, 2022
Today after the bell, locally focused social network Nextdoor reported its fourth-quarter earnings. The company combined with a SPAC last November, making today its first quarterly report since going public.
In good news for both Nextdoor investors and the general SPAC market, the company managed to best revenue expectations, leading to modest share-price appreciation in after-hours trading this afternoon. While still sharply under its pre-combination price of $10 per share — Nextdoor’s stock is worth $6.50 after its small after-hours gains — the company’s results are generally positive and worth our time to unpack.
In the fourth quarter of 2021, Nextdoor recorded revenues of $59.3 million, up 47.9% from its year-ago tally of $40.1 million. However, the company also had an expensive quarter, with operating costs of $88.6 million — up sharply from a year-ago mark of $55.5 million — leading to a larger net loss of $29.3 million in the quarter, up from $14.9 million in Q4 2020.