Everyone, thank you for attending today's Nextdoor Q2 2023 earnings call. My name is Sierra, and I'll be your moderator today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, press star one on your telephone keypad. I would now like to pass the conference over to our host, Matt Anderson, Head of Investor Relations with Nextdoor. Please proceed. Thank you, Sierra. Good afternoon, and thank you for joining us today to review Nextdoor's Q2 of 2023 financial results. With us on the call today are Sarah Friar, Chief Executive Officer, and Mike Doyle, Chief Financial Officer. During this call, we may make statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance. They are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's website and in the Investor Relations section of our website, as well as the risks and other important factors discussed in today's earnings release. Additionally, non-GAAP financial measures will be discussed on today's conference call. The reconciliation of these measures to their most directly comparable GAAP financial measures can be found in the Q2 2023 shareholder letter released today. With that, I'd like to turn the call over to Sarah. Thank you, Matt. Q2 was a strong quarter for us as we delivered year-over-year growth across our key metrics of Weekly Active Users, or WAU, and revenue, as well as adjusted EBITDA margin improvement. Starting with neighbors, WAU grew 13% year-over-year to 41.6 million globally. While WAU declined slightly sequentially, we added 1.6 million WAU in the first half of the year. We also saw strength in underlying engagement trends, most notably session depth, which has increased 24% since the end of 2022. We are successfully executing on our 2023 product initiatives to increase the number of neighbors and organizations on the platform, deepen engagement by driving content creation and personalization, and enable sustainable advertiser and revenue growth through ad platform development. We continue to bring new neighbors and organizations to Nextdoor through invites, content sharing, and brand awareness initiatives. In Q2, we launched our 7th annual Neighborhood Faves campaign, where neighbors voted for their favorite local businesses. This brand-building campaign benefits businesses. Winners receive almost 5x times more clicks on their Nextdoor ads and 6x more recommendations on their business pages. It also benefits neighbors. 94% of them value recommendations from other neighbors. During the campaign, neighbors voted for almost 2.5 million businesses on the platform, creating a virtuous cycle of support and interaction between neighbors and businesses. With over 60 million business faves and recommendations and nearly 4.1 million claimed business pages on the platform, relative to just over two million when we went public less than two years ago, we create a strong presence for local businesses and deliver value by providing reach to a high intent audience of real people in neighborhoods everywhere. Last month, we had the opportunity to celebrate the 2023 Neighborhood Faves winners with beloved local businesses like Buunni Coffee, Brooklyn Blooms, and Foley Hardware as they rang the opening bell at the NYSE. We know that when small businesses like these thrive, neighborhoods thrive. In the quarter, we accelerated our API initiatives to share Nextdoor content on and off the platform and to make this process more seamless for neighbors, including through partnerships with Axios and Reddit. We're also in the very early days of partnering with the BBC to bring more local news content to Nextdoor. These initiatives help drive engagement and raise awareness of Nextdoor as the platform to get things done locally. We're seeing results with over 90% of global verified neighbors coming to Nextdoor organically in the quarter. We're well positioned to explore the possibilities for AI and generative AI applications because of our unique and highly dynamic local knowledge graph. Our graph benefits from real-time tagging. In other words, neighbors are already telling us if their post is a business recommendation or an event or a for sale item. We can use this information to train our ML models and ultimately help neighbors more easily meet their needs on Nextdoor, including finding the most up-to-date local information or exchanging goods and services. We are excited for AI's potential to drive both WOW and revenue outcomes. AI, especially ML, continued to play a critical role across our product initiatives to drive engagement in Q2. We implemented AI in the newsfeed to help content travel based on the number of neighbors in the neighborhood. As a result, neighborhoods with fewer neighbors are seeing more content, which has driven greater session depth, comments, posting, and even revenue. Using AI to customize the newsfeed for neighborhood characteristics like population and engagement level is a precursor to personalizing the newsfeed for neighbor characteristics like interest. We continue to roll out the generative AI assistant we started testing late last quarter. Assistant for Post helps neighbors create posts in a way that are kinder and more engaging, and we've seen strong adoption. The majority of neighbors who see the assistant-generated suggestions are choosing to integrate them, leading to more productive and positive posts. We've seen particularly high traction from those creating business posts or recommendations, highlighting the strong use case for our two-sided network, businesses connecting to neighbors and vice versa on the platform. In addition, we have integrated assistance with our Kindness Reminder to suggest ways to rephrase comments that are potentially hurtful. This work accelerates our ongoing efforts to foster neighborhood vitality. Earlier this month, we were honored to participate as the NAACP National Convention closing plenary keynote with NAACP President and CEO, Derrick Johnson, on the theme of thriving together. In working with trusted advisors and partners such as President Johnson, Dr. Jennifer Eberhardt, and the Stanford SPARQ Lab, and Julianne Holt-Lunstad, Founding Scientific Chair and Board Member for the U.S. Foundation for Social Connection and the Global Initiative on Loneliness and Connection, we are creating a welcoming platform that enables all neighbors to thrive. While there is more to do, features like the generative AI assistant and Kindness Reminder are an integral part of our growth and engagement strategy. Beyond AI, we launched several other product features designed to enhance the Nextdoor user experience and drive engagement and ultimately, revenue. For example, contextually relevant ads on our classified surface For Sale and Free through our partnership with Microsoft Bing. When neighbors search for an item, for example, a bike, they see neighbor posts for bikes, as well as relevant ads for bikes. Contextually relevant ads create a better neighbor experience and provide strong advertiser value. One of the most significant areas of progress in Q2 was on our ad platform. Over the past several quarters, we have been building the foundation for our improved self-serve ad experience, designed to reduce advertiser effort, as well as our proprietary ad server, designed to improve advertiser outcomes. Our self-serve ad experience, the Nextdoor Ads Manager, is now available to new advertisers of any size. Additionally, we have started migrating existing advertisers to the improved experience, and we're seeing positive results. One newly migrated solar company in Arizona said they greatly appreciate how our ad creation tool allows them to serve ads to specific zip codes in a uniquely local and hyper-targeted way. It is a testament to the ease and functionality of the Nextdoor Ads Manager, as well as proximity and place as some of our key differentiators. The Nextdoor ad server is now delivering 100% of US SMB demand. The server is already offering a more powerful advertising experience, including through faster loading times and better distribution of ad impressions. Over time, the Nextdoor ad server will provide better targeting and optimization capabilities, benefiting customers and neighbors alike. In closing, we are pleased with the progress we've made year to date on many key product initiatives and business metrics, and we're excited to continue executing on our top priorities, growing our base of neighbors and organizations, deepening engagement, and driving revenue growth by supporting advertisers through our ad platform. We returned to revenue growth and adjusted EBITDA margin expansion in Q2, and we remain confident that we will continue to generate revenue growth and margin improvement in 2023 overall and beyond. With that, I'll turn it over to Mike. Thank you, Sarah. Q2 revenue of $57 million grew 4% year-over-year and demonstrated increasing momentum throughout the quarter. We saw several areas of revenue growth in Q2. Consistent with the past few quarters, mid-market advertisers continued to be an area of strength. We added 17% more mid-market logos quarter-over-quarter, and small and medium-sized businesses or SMBs, returns to revenue growth. We are continuing to see the benefits of our strategy to deepen our relationships with advertising agencies, who can help us unlock spend from new customers and increase revenue diversity. In Q2, 77% of new global enterprise accounts came through agency partnerships. International revenue grew by 28% year-over-year, and we added 79% more new logos internationally this quarter than in Q2 2022. Growth in the financial services and real estate verticals overall remains muted, but this was offset by strength in other verticals, including healthcare and travel. Many of our larger advertisers continued to increase spend. For example, Leaf Home doubled spend from Q1 to Q2 of this year as a result of strong performance on the platform. Q2 ARPU of $1.37 declined 7% year-over-year, reflecting another quarter of growing year-over-year WAU and impressions, both of which outpaced revenue growth in the period. Q2 adjusted EBITDA loss was $19 million, representing a -33% margin. This is a four point year-over-year improvement and an 11-point sequential improvement in margin, reflecting a combination of revenue growth and expense management, while also ensuring we are resourced to deliver on our long-term growth objectives. Notably, we grew cost of revenue just 2% year-over-year as platform hosting cost efficiencies drove operating leverage. Our Q2 operating cash burn of $12 million was better than the adjusted EBITDA loss, reflecting another quarter of benefit from interest income. We ended Q2 with $552 million in cash, cash equivalents, and marketable securities. We will continue to evaluate our capital allocation opportunities looking forward. I'll close with our outlook. We expect Q3 of 2023 revenue growth to be in line with our Q2 growth rate at approximately 4% growth. Based on progress to date, we expect Q4 year-over-year revenue growth to accelerate, implying mid-single digit year-over-year growth for the full year of 2023. Turning to adjusted EBITDA, we expect Q3 adjusted EBITDA loss to be -$21 million to -$20 million. We continue to expect to return to adjusted EBITDA margin improvement for the full year of 2023, and we will hold sequential operating expense growth to low single digits in the second half of this year. We have made substantial progress across key business metrics year to date, and remain focused on growing WAU and revenue through our 2023 product priorities. Thank you for joining our earnings call today. With that, I'll turn it over to the operator for Q&A. Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad. To remove your question, press star followed by two. If you are using a speakerphone, please pick up your handset before asking your question. Our first question today comes from Youssef Squali with Truist. Please proceed. Hi, this is Robert Zeller on for Yousef. Thanks for taking our questions. Increasing the content from nearby neighborhoods seems like a really good idea because the more relevant content a user will see, the more time they will spend in the app. I'm curious, how do you strike the balance between expanding to more content from nearby neighborhoods, while also maintaining the value proposition of that post proximity and localization? I'm just curious, how much more room is there to expand this without losing Nextdoor's core value proposition? Then I'll have one follow-up. Thanks. Great. Thank you, Robert. It's a great question, something that we discuss a lot internally. I think the, the punchline answer is personalization. Let me kind of go backtrack a little. Nextdoor is being on a shift of going from private to local. We used to be the private social network for your neighborhood, and we really broke that apart over the last couple of years. It really is a move to become much higher utility for neighbors and much higher in terms of community. There's a, a balance here. One of the first moves we made was to be able to have anyone content. That allows us to have content travel depending on how useful it is. For example, something about lost keys from a run you were on or a lost pet probably should stay hyper-local, and man, they're not gonna go that far. If you think about something like an emergency situation, right, with all of us living under, sadly, tornado warnings, and high heat exposure, those could be examples where you actually want the content to travel to be able to travel across multiple neighborhoods. That was a big push on anyone content. Of course, that also gives us a lot of leverage in areas like SEO as well. I'm gonna come back to personalization because this is a place where we've been doing a lot of deep investments from an AI ML perspective, right? I joined Nextdoor because of the unique data set, right? We are the local knowledge graph, highly dynamic, very unique content. On top of that, you'll hear other companies talk about having to get their, their data tagged or labeled. Nextdoor is really interesting in that our data effectively gets labeled in real time by our neighbors. The ability for them to say, "Hey, this is a post about a recommendation, this is something I'm flagging for moderation, this is something I'm selling or something I'm offering for free." Right? That gives us a really interesting base to then be able to apply models on top of. Being able to train those models means that we have a lot of possibility to do better personalization. Like for some people, local is literally their building or their street, and for others, local might be their whole county. There's even for an individual, if they are looking for their lost keys from a run, local is a very small radius, but if they're looking for an emergency plumber, they're probably willing to have a post travel further to get the utility. Even for individuals, the concept of local can change depending on the use case and on the context. That's the balance for us. That's why we have done this kind of long-term, multi-year effort to move from private to local. It now gives us the ability to move content based on personalization. Then to where you started with your point, it also now allows us to really up the amount of liquidity in neighborhoods that are perhaps younger, where we don't have as many neighbors at the moment, not creating as much content. When we can do that, we're already seeing the offshoot of that, which is higher engagement, brings more verified neighbors to the platform, and it allows for deeper scroll, scrolling into the app itself. That's why you saw WAU grew at 13% year-over-year, but session depth grew faster. In fact, we told you that the percentage overall of session depth was up about 24% just since the end of last year. Appreciate the question, and happy to take the follow-up. Okay, great. Thank you. Yes, the follow-up is, just clarification. I understand, you know, the assistant feature seems pretty straightforward for helping improve posts. I'm curious how it exactly works for the business-related purposes. It seems like a very interesting new, utility for the assistant feature for business- Yeah. related purposes. How exactly does that work? Yeah. Right now, one of the big use cases on Nextdoor is giving and getting recommendations. This is a place where we're seeing in particular, the, the AI, the, the assistants do very well for you. If I'm looking for a recommendation for a hair salon, or I wanna give a recommendation for the amazing, you know, donut that I had this morning at the local coffee shop, those are places where we see the AI's ability to rewrite the post in a much more engaging way, already taking off. We're seeing the majority of neighbors accept the prompt and say, "Yeah, I would rather post it this way." What we're learning is as we get into the long tail, where maybe there's less aggregation, like less similarity to the post, neighbors are still better at being engaging. This is where now the iteration of AI begins, where there will be places where we have a lot of data, and that allows us to give really good kind of offers of, of different ways to write a post. Other places where there's just a long tail, and the ability to sound really authentic and local really matters. Again, it just keeps coming back to what's so unique and differentiated by Nextdoor, which is the fact that we have this local, very unique, highly demand, highly dynamic local knowledge graph. I think where we're going, I don't think, where we're going with generative AI is thinking about our ad platform. We have this insight now that says an AI can actually be very effective in writing a recommendation, which is really just a step away from writing an ad. The benefit of building our own next generation ad platform, which we're through the build on, is that we can now take advantage of next generation technology and leapfrog, in effect. We think that there's very fertile grounds to start creating an ad using generative AI, which is pulling from what neighbors have already written about a business, maybe pictures they've already posted about a business. That when you, as the business, and you might even be a big business, not just a small business, but in small business land, you're everything. You're creating the product, you're the service provider, you're the CFO, you're the person doing all the legal stuff, you're making sure the server showed up, and you're also the CMO. If we can make your life easier and have that kind of wow moment where it's like, "Wow, Nextdoor really understands me," we think that is an phenomenal way to get a great ad out for local business, so they get more revenue, and also have a great outcome for a neighbor, where they feel like it's great content. That's why I quoted the 4.1 million claimed pages, because that's kind of the immediate place to go, right? Those are businesses that have taken a first step with Nextdoor. They've claimed their business page, almost double since we went public, and now we know we can go back and sell them on that upsell moment, from just posting to now turning it into an ad, hopefully with GenAI helping. Okay, great. Thank you very much. Appreciate the question. Our next question comes from Eric Sheridan with Goldman Sachs. Please proceed. Thanks so much for taking the questions. Maybe two, if I could. One, I'm just drawn to the comment you made about agency relationships and, and the nature of that being a driver of advertiser momentum in the quarter. Can you talk a little bit about some of the investments you've made to date, and how you're thinking about the execution piece in terms of building agency relationships through this year? More importantly, as a backdrop for budget decisions into next year, that could possibly step up either advertiser count or your advertising revenue base going into 2024. Thanks so much, Sarah. Eric, this is Mike. I'll take the question. Much like we have built out our approach in industry verticals, we've made a significant investment in building a team to deepen our relationships with advertising agencies. First and foremost, it's to help to build awareness of the Nextdoor platform, and then to leverage the agency relationships with their client base, to help them to learn how to best take advantage of our platform. We have a variety of ways we do this, including some advanced relationships where we have preferential treatment of a client base with an agency, to just allowing us to get more introductions through the advertiser client base. This has helped us really to make that to get that first introduction, to get the trial budgets, and then to deepen the spend on the platform. As we mentioned, 77% of our new enterprise accounts in Q2 had an agency partnership component. We work together with the agencies to make sure that we're delivering the performance and meeting the expectations of their client base. This is an area that we continue to invest in, and it works alongside with our direct relationships with the advertisers. Great. Thanks for the call, Mike. Thanks, Eric. Our next, our next question comes from Ron Josey with Citi. Please proceed. Great. Great, thanks for taking the question. I've got two. Sarah, I wanted to, to dig in a little bit more about adding and improving contextually relevant ads for For Sale and Free on Nextdoor. Talk to us a little bit more about, if you could, the size of the classified business in terms of traffic or sessions, and then specifically how Bing monetization might improve the user experience and how it's integrated. That's the first question. The second question is just on, on WAU, I think that declined sequentially. Any additional insights there would be helpful. Thank you. Yes. Thanks, Ron. First of all, on For Sale and Free, I'd maybe start just by breaking down. If you look at why people come to Nextdoor, number one is give and get recommendations, I just talked about. The second reason is the marketplace that we have, that we call For Sale and Free. It's actually quite large. We see over $1 billion per month put on For Sale and Free. One of the things, you know, why we win there, why people come to Nextdoor, number one, is it's hyperlocal. If you're trying to get rid of, you know, I don't know, something in your garage or a table, not gonna FedEx it. You need someone that can probably show up at your house. Number two, it's high trust, so someone's probably going to show up at your house. The third reason is this investment in community that we see through that platform, where often someone like, say, a mom might give away a bike that a kid has grown out of, partially 'cause she or maybe a dad, he wants to give back to the community as well. In fact, I think it's something like about 20-ish% of all the items in the catalog are actually offered for free. It's an incredible value proposition for a local community. I love that you picked up on the piece where we obviously put ads onto that surface, and historically, we've more just put our ads that we're getting, broadly speaking, from, from any client that, that is buying ads on the platform. What we did in Q2 is we integrated in with Microsoft Bing's ad platform, where now we can do a much more contextual ad. When someone searches for a bike, for example, we obviously can show them the bikes that are available from the community, but we can also show them a contextual ad. There's a couple of things we're doing here. Number one, we just want the neighbor experience to be awesome, right? You're trying to get a job done. I need to get a bike for my kid. We want you to be able to do that, whether you buy it, through an actual third-party vendor or whether you get it from your community. It's also a way for us to keep testing this deep set of belief we have, that we have so much information and such a high intent audience, that if we can keep offering an ad that has high contextual relevance in the moment, we can prove that from an advertiser perspective, they're gonna have the best possible outcome. The good news with the Bing ads that we're doing is the answer is yes, yes, yes, yes, yes. They're incredibly performing. It's given us a lot of confidence that as we move to our new ad tech stack and are able to actually take advantage of our proprietary data, we're going to be able to add more and more of this contextual relevance, sometimes through search, but also just generally speaking, because we know something about you as an individual, or we know something about your community. Then, Ron, I can't remember if you asked anything else. I think you covered it. I think that was it. Okay, great. Thank you. No, that's it. I don't know if... if... Can you still hear me? Yeah, we can hear you. Yeah. Okay. Oh, hey, no, Sarah, that was super helpful on, on the classifieds and, and exciting. I was just wondering on the, on the WAUs, it looks like it declined sequentially. Anything to call out there specifically? No. I would say overall, like, we looked at it in terms of the first half and felt, you know, we'd had a lot of outperformance in Q1 and probably just settled down a little in Q2. I'm gonna go back to the year-over-year growth of 13% year over year, just under $42 million of total WOW. I think a couple of things I'd really want to call out for you. Number one, a lot of our WOW growth is coming from top-of-funnel Verified Neighbor growth. What we're proud of in the quarter, as we have cut our own costs to make sure we're staying mindful of margin progression, is that over 90% of all Verified Neighbors came to the platform organically. That is a great signal that on Nextdoor, we have strong product-market fit. The second thing is, as people come as Verified Neighbors, they're engaging in a best-in-class way. Verified Neighbor to WAU ratio has stayed at just a little over 50%, but also WAU to DAU ratios have also stayed at over 50%. That's strong, a strong signal for us, what that means for overall growth. We add about 2 million new Verified Neighbors a quarter right now, and that's with no halo effect from any paid marketing, et cetera. Going down the funnel from just WAU to session, why that's important is because, of course, sessions are gonna get you some impressions, and impressions are what's gonna get you to revenue. Session growth was actually faster than WAU growth, and that has also been true for the last couple of quarters, and that's because we're driving. As people come to the platform, we're driving them to go deeper on the platform, and that's because we're putting more content in front of them that is valuable. That's an output of all of the investment we've done from an AI, ML perspective. We talked about how session growth continues to outpace WAU growth. Then finally, in terms of retention, we continue to see ongoing strength from a retention standpoint. All the same, the cohorts are sticking around as we have seen in the past couple of years. There's no changes there. Again, really strong signal that once we get you, you stick around, and you find that value on Nextdoor. As we look forward into Q3 and the back part of the year, our expectation for Q3 WAU is it's probably gonna be about similar to Q2. We don't want to get ahead of ourselves, but we are putting a lot of focus on driving that top-of-funnel growth right now, and continuing to drive session depth. That's giving us the confidence that we can continue to drive revenue growth, that we'll see that accelerate into the back half of the year. In fact, Q3, we gave you the guidance for it, but if you're kind of doing the math to get to overall revenue growth for the full year for the company, you would know that that starts to get you into mid-teens, even high teens type growth rates by the time we exit Q4. Thank you, Sarah. Much appreciated. You're welcome. Thank you. Our next question comes from Brian Fitzgerald with Wells Fargo. Please proceed. Thanks. A couple on the advertising side, quick ones. Can you mind us, what is the expected timeline for the full migration of existing advertisers to the Nextdoor Ads Manager? Where do you stand today in terms of that, and, and are you seeing any dynamics of accelerating transition as, as you kinda get more and more adept at doing that, advertisers get more and more adept at using tools? And then, and then I'll have a follow-up. Sure, great. Yeah, first of all, I'll, I'll talk to Nextdoor Ads Manager. Remember, that's the actual interface that you now hit, standalone app, and it's all about reducing advertiser effort. How do we make it super easy to come to Nextdoor, create an ad, and get it out doing what it needs to do for you, growing your business? The good news is, in the quarter, we're now at a point where we, businesses of any size, including ad agencies, can now self-serve on the platform. That was our big goal, to get to that point where everyone could self-serve. Now over the next couple of quarters, is we've started migrating our existing customer base. Net new customers can self-serve to their heart's content, and now we're moving net new. Just wanna be... or sorry, migrating our current base. Just wanna make sure I get that straight. That should be done over the next couple of quarters. What they're seeing is it's a more powerful tool. We're able to give them better performance metrics, better reporting. They like the simplification. In my prepared remarks, I talked about the solar company out of Arizona, a good example of a mid-market client. They like it because they can just be very precise in their targeting. They know exactly which neighborhoods they currently have a lot of penetration in, and frankly, where they need to go south. They really view that as differentiated on Nextdoor. They can't do that as well on other platforms. That's Nextdoor Ads Manager. The other piece, which is the back end, Nextdoor Ad Server, that's our back end piece, which is about advertiser outcomes. How do we make sure the ads perform better? There, in terms of progress in Q2, we now deliver 100% of U.S. SMB demand on it, and as we look forward into Q3 and Q4, it's about now how do we bring all of the mid-market over? Then 2024, we'll be bringing, finally, the large enterprises. Why we're doing it in that order is really about just managing risk. I think what we're seeing right now with NAS is actually a lot of stuff that makes us quite excited. As I mentioned, on the prior question, first of all, just latency has gone down. Not having to do a call out to someone else's ad server or ad platform means that, you know, as you're scrolling through the feed, we don't miss an opportunity to put that right ad in front of you. That's good from a revenue standpoint. Second is we can do a much better job of optimizing ad targeting and ad delivery. Again, making sure that the right ad is going out at the right time. Like, when do you wanna see the advert from the local bakery for what they've got going in the morning, versus when do you need an ad from the local plumber or the local flooring expert? And then finally, ad relevance. You know, again, from a neighbor perspective, what, what does a neighbor see and why? We're really happy to finally be making these moves. Q2 was a really big quarter for us. The momentum on the ad tech side was really phenomenal. I'm super grateful to the team, and I feel like it's starting to show up in our results. The fact that we're back to year-over-year growth, and looking at acceleration as we get into the back end part of the year, it's pretty exciting. Got it. Then, just in prior calls, you've shared the retention levels for your top 50 advertisers. Any update on that, the latest advertiser numbers or revenue retention rates? I mean, overall, if you look at Q2 in terms of retention trends, we saw stable to improving advertiser retention trends through the quarter. In particular, what we would call kind of managed advertisers, so folks that our sales team is touching directly. Self-serve was more stable, I would say. Retention amongst the largest advertisers, still really high. You know, not a ton of change from the numbers that we've given you before, so that is good. The final thing I'd say in terms of, you know, what makes us a little bit more upbeat, there are verticals like financial services, home services, that I think are still under a lot of strain. They're not really spending, but we know that we really perform for them. The fact that we can now get back to growth with a lot of newer verticals that we weren't really servicing a year ago, folks like healthcare, government, and so on, makes me excited for the latent capacity that is hopefully there as these other verticals begin to see some, you know, return to normal. Overall, yeah, doing good on from an advertiser retention standpoint as well. Awesome. Thank you, Sarah. Really appreciate it. Thank you. Our next question comes from Mark Mahaney with Evercore. Please proceed. Thanks. I just have two quick questions. Did you, did you already comment on just the overall advertising environment and how you would describe it since the beginning of the year? Stable, soft, starting to recover, anything like that? Could you also secondly just call out particular verticals? Is there any change in kind of the vertical strength and weakness that you've seen, you know, over the last year or two? Thank you. Okay. Why don't I take the first, and then I'll. Mike definitely should jump in on the second. Overall, Mark, w- we've, we've seen a thaw in the market. I don't wanna get too carried away, but it definitely Q2 felt like a better quarter, where each month actually got better from a year-over-year growth perspective, and that's continued in the first month of the, of the new quarter. You know, generally, I would say probably advertisers are just a little bit more optimistic. I don't think the recession has manifested to the same degree that people may have feared. I think secondly, when I talk to marketers, they're ready to do more full-funnel advertising again. Now, they clearly need to get the dollars to do that, but they want to be able to do a better mix of brands all the way down to performance marketing. They've been in this kind of trap of performance marketing only, if they're spending at all, and they're kind of recognizing, you know, full funnel, they need in the end to come back to that if they're going to be able to create the, the sort of brand recognition, the, the feel, the emotional pull that a consumer feels to a brand. Then if I think about we were in Cannes this year, I mean, the themes we heard in Cannes really kind of resonated for Nextdoor. A lot of conversation about showing up authentically, showing up around community, around local, really kind of struck a chord. I think Nextdoor's ability to show up and say, "We're about real people, you know, and we know a lot about where you live," so targeting is high. We're about a high-intent audience that's in a mode of spending, like they're looking for a plumber or they're looking for a dog groomer. Finally, the fact that we can do this very customized local at-scale messaging is also very unique and interesting. The incrementality is quite high relative to other platforms. I think that's the other reason why agencies are starting to do a lot more work with us, as Mike talked about earlier. Mike, I'll let you take the, the vertical on the, the scale of business conversation. Yeah, if I could just add, I mean, well, as Sarah mentioned, we've seen some recovery in the ad market. There is some chop, choppiness as well. We've seen, you know, continue to see strength in our mid-market business, as we've added a record number of new logos. We also saw the SMB business return to growth, and we're continuing to see momentum there, which is something new to add to the, to the discussion, this, this quarter. You know, we- there's still some pressure on av- on average spend per advertiser, but really are pleased with our ability to retain and acquire advertisers. I think that speaks to advertisers being willing to be out there and, and be spending to drive demand into their own business, businesses. You know, we, we manage our group of advertisers as a portfolio, and part of our investment in the advertising agency channel has been really to improve diversification there, and it is yielding results. We talked about the verticals that are performing in a very strong way for us, home services, healthcare, tech and telco, travel. Pets has been really an area of fast growth for us as well. It allows us then to work with advertisers to help them in their path back to spending in areas like financial services and in real estate. I think the other aspect of that is just being- having the, the, the platform have capabilities in, in, in multiple areas, things like, brand awareness versus performance, advertising, and working with our advertiser partners, to, to drive spend, in, in ways that, that they need to based on the performance in their own underlying businesses. Okay. Thank you, Mike. Thank you, Sarah. Thanks, Mark. Sure. Thank you all for your questions. There are currently no questions waiting in queue, so as a reminder, it is star one to ask a question and star two to remove your question. There are no more questions waiting at this time, so I'll pass the conference back over to Sarah Friar, CEO, for any closing remarks. Sarah, thank you so much. Thanks, everyone, for joining. As I said at the top of the call, we're really pleased with our return to growth on year-over-year growth across all of our key metrics. WAU growing 13%, revenue growing 4%, and seeing EBITDA margin improvement of four points. If I look at what are the levers for future growth, the fact that 90% of users joined us organically in Q2 is a really good indication that there's real value on Nextdoor, and that's all without any halo effect of paid marketing. The fact that session growth continues to show strength, it's out pacing WAU growth, that's a direct link back to revenue, and the fact that session depth is up as well. As Mike mentioned, we saw strength in areas like mid-market sales, international, and of course, our ad agency partnerships and the big push from Neighborhood Faves. A really important one, the fact we now have 4.1 million claimed pages, that's fertile ground for upselling. I talked a little about the verticals like finserv, real estate, that we think will improve over time. We perform really well for them, so there's latent capacity there. Of course, our opportunity on AI. Nextdoor is the local knowledge graph with labeled data, high-intent audience, real people in neighborhoods everywhere. We are laser focused on growing WAU and revenue, and I wanna say a huge thank you to the team, 'cause this was a great quarter for momentum in terms of the product build. We're on track to return to revenue growth and margin improvement for the full year, while also investing in the long-term opportunity for the business. Thanks for your time. We look forward to any follow-up questions. We'll talk to you all in 90 days. Thanks a lot. That will conclude today's conference call. Thank you all for your participation. You may now disconnect your line.