Nextdoor Holdings Inc. reported a sales outlook that missed analysts' estimates, saying business conditions are worse than it previously expected.
The company's revenue in the current quarter will be between $53 million and $55 million, according to a statement Tuesday. That fell short of the $64.6 million average analyst estimate. Its annual revenue projection also missed estimates.
Nextdoor told shareholders that its advertisers are tightening their budgets, "a reflection of rising macroeconomic uncertainty,
Chief Executive Officer Sarah Friar said the company is mulling diversifying its revenue streams — perhaps through monthly subscriptions for small and midsized business pages. The businesses could post in the feed as neighbors, and pay to promote those posts to a wider audience, "and you do that on a monthly subscription rather than a pure impression-based ad," Friar said on a call with media. "And what SMBs tend to like about that is predictability."
The Menlo Park, California-based company, known as a
Nextdoor fell 8.3% to $3.30 in after-hours trading, after closing at $3.60. The stock has declined 54% so far this year.