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Nextdoor Investor Update Q3 2026
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Certain statements in this Investor Update may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “project,” “target,” “plan,” or “potentially” or the negatives of these terms or variations of them or similar terminology. These statements include, but are not limited to, statements regarding our future performance and our market opportunity, including expected financial results for the fourth quarter of 2026 and full-year 2026, trends and expectations regarding our business and operating results, including the implementation and potential impact of our new Nextdoor initiative, our expectations on Platform WAU growth, our business strategy and plans, and our objectives and future operations. Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date of this Investor Update, and are subject to risks and uncertainties. Accordingly, actual results could differ materially due to a variety of factors, including: our ability to scale our business and monetization efforts; our ability to expand business operations abroad; our limited operating history; risks associated with managing our growth; our ability to achieve and maintain profitability in the future; the effects of the highly competitive market in which we operate; the impact of macroeconomic conditions on our business, including the impact of significant political, trade and regulatory developments; our ability to attract new and retain existing customers and users, or renew and expand our relationships with them; our ability to anticipate and satisfy customer preferences; market acceptance of our platform; our ability to successfully develop and timely introduce new products and services; risks associated with the use of AI and ML-driven features in our platform; our ability to achieve our objectives of strategic and operational initiatives; cybersecurity risks to our various systems and software; the impact of privacy and data security laws and other applicable laws and regulations; and other general market, political, economic, and business conditions. Additional risks and uncertainties that could affect our financial results and business are more fully described in our Quarterly Report on Form 10-Q for the period ended September 30, 2026, expected to be filed on November 5, 2026, and our other SEC filings, which are or will be available on the Investor Relations page of our website at investors.nextdoor.com and on the SEC’s website at www.sec.gov. All forward-looking statements contained herein are based on information available to us as of the date hereof and you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Investor Update or to conform these statements to actual results or revised expectations, except as required by law. Undue reliance should not be placed on the forward-looking statements in this Investor Update. This Investor Update includes certain non-GAAP financial measures (including on a forward-looking basis). These non-GAAP measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to their nearest GAAP equivalent or any other performance measures derived in accordance with GAAP. A reconciliation of the non-GAAP financial measures used in this Investor Update to their nearest GAAP equivalent is included in the Appendix to this Investor Update. Nextdoor believes that these non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about Nextdoor. Nextdoor’s management uses forward-looking non-GAAP measures to evaluate Nextdoor’s projected financials and operating performance. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents, including that they exclude significant expenses that are required by GAAP to be recorded in Nextdoor’s financial measures. In addition, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore, Nextdoor’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies. We have not reconciled our Adjusted EBITDA outlook to GAAP net loss because certain items that impact GAAP net loss are uncertain or out of our control and cannot be reasonably predicted. In particular, stock-based compensation expense is impacted by the future fair market value of our common stock and other factors, all of which are difficult to predict, subject to frequent change, or not within our control. The actual amount of these expenses during 2026 will have a significant impact on our future GAAP financial results. Accordingly, a reconciliation of Adjusted EBITDA outlook to net loss is not available without unreasonable efforts. Disclaimer
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Introducing Nextdoor 4 Q3 2026 Performance Update 11 Near-Term Priorities & Outlook 20 Appendix 23 Table of Contents
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Introducing Nextdoor The essential neighborhood network
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Nextdoor is the essential neighborhood network… 5 All metrics as of 9/30/2026. Ask An AI operating system that distills years of insights to help neighbors find the best in their community Faves Neighbors vouching for local businesses in their community that have earned their trust and loyalty News and Alerts Stay safe and informed with trusted local sources with 4K+ local publishers and 6K+ public agencies Groups and Events Where neighbors get together and turn shared interests into real-life connections For Sale & Free Helping neighbors declutter their homes and discover treasures around the corner
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6 Where neighbor contributions drive further engagement… Neighbors contribute We spot the good We route it to the right neighbors More neighbors respond Contributors come back, and multiply The contribution flywheel
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7 With an existing audience unlike any other platform Real people An authentic user base looking to find and share trusted recommendations and local information. High intent Neighbors come to Nextdoor ready to act, looking for businesses and recommendations they can trust. Hyperlocal Advertisers can reach neighbors by neighborhood, with messages that fit each one at scale.
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8 Nextdoor by the numbers All metrics as of 9/30/2026. WAU = Weekly Active Users. Platform WAU is defined as a Nextdoor user who opens our application or logs on to our website at least once during a defined 7-day period. 110M+ Verified Neighbors 24.5M Platform WAU 11 Countries 1 in 3 U.S. Households 350K+ Global Neighborhoods
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9 Three vectors aimed at driving growth and… 01 Number of users Increasing the total number of users active on the platform on a regular basis. 02 User engagement Increasing frequency and depth of engagement by users on the platform. 03 Monetization rate Increasing the monetization rate of user activity on the app.
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Five imperatives underlie our long-term strategy The Neighborhood Graph A unique verified, address-based graph built on identity, location, and trust. Intent-Driven Engagement High-intent usage driven by real-world decisions and action. Multiple Monetization Pathways Multiple monetization tools to match high- intent engagement with businesses. Validated Business Model Improving ROI and operating leverage demonstrate disciplined execution. Founder’s Mentality Long-term focus, disciplined capital allocation, and commitment to network health. 10
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Performance Update Q3 2026
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Q3 Highlights & Key Achievements • Drove Platform WAU of 24.5M, growing +7% Q/Q and +14% Y/Y; third straight quarter of sequential growth • Delivered Q3 revenue of $79M, +14% Y/Y, above guidance • Narrowed Net Loss to less than $1M, an 18-point Y/Y margin improvement • Delivered Adjusted EBITDA of $10M, a 13% margin, above guidance • Decreased Q3 stock-based compensation as a percent of revenue by 6 ppt Y/Y • Repurchased ~3M shares for ~$7M • Ended Q3 with $382M of cash, cash equivalents and marketable securities; YTD cash flow from operations of $28M, +$31M Y/Y Metrics for the quarter ended 9/30/2026. Some figures may not tie due to rounding. A reconciliation of non-GAAP metrics used in this Investor Update to their most comparable GAAP measures is provided in the Appendix at the end of this Investor Update. 12
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Platform Weekly Active Users (WAU) Some figures may not tie due to rounding. Platform WAU reflects users who open our application or log on to our website at least once during a defined 7-day period. Platform WAU is our primary user metric It includes users who engage directly on the Nextdoor app or website 24.5 million Platform WAU reflects an all-time high for Nextdoor Sequential Platform WAU growth reflects impact of ongoing product investment 21.6 21.0 22.3 22.9 24.5 (3%) (5%) 1% 5% 14% Platform WAU (M) % Y/Y Change Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 13
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Revenue Some figures may not tie due to rounding. Strongest quarterly revenue in company history Q3 revenue was $79M, +14% year-over-year, reflecting broad-based growth across channels Self-serve channel revenue grew 35% year-over-year in Q3 and represents 69% of revenue in Q3 Platform ARPU improved by 1% year-over-year in Q3 $69 $69 $62 $75 $79 5% 7% 14% 15% 14% Revenue ($M) % Y/Y Change Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 14
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Net Income (Loss) Some figures may not tie due to rounding. Operating leverage improved year-over-year Net loss was less than $1M and margin was (1%) Net margin improved by 18 ppt year-over-year Margin improvement was driven by stronger revenue and lower year-over-year GAAP operating expenses ($13) ($4) ($11) ($2) ($1) (19%) (6%) (19%) (3%) (1%) Net Loss ($M) % Margin Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 15
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Adjusted EBITDA Some figures may not tie due to rounding. A reconciliation of non-GAAP metrics used in this Investor Update to their most comparable GAAP measures is provided in the Appendix at the end of this Investor Update. Margin gains reflect ongoing discipline and better execution Adjusted EBITDA was $10M, representing a 13% margin Adjusted EBITDA margin improved by 7 ppt year-over- year Revenue growth and disciplined cost management continue to drive our year-over-year improvement $4 $8 ($0) $10 $10 6% 11% (0%) 13% 13% Adj. EBITDA ($M) % Margin Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 16
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Stock-Based Compensation Expense Some figures may not tie due to rounding. Stock-based compensation expense continues to decrease Stock-based compensation expense decreased 14% year-over-year in Q3 As a % of revenue, stock-based compensation expense decreased 6 ppt year-over-year $17 $15 $15 $15 $14 24% 21% 24% 20% 18% Stock-based compensation expense ($M)% Revenue Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 17
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Non-GAAP Operating Expenses ($M) $10 $10 $10 $11 $13 $11 $11 $10 $10 $11 $20 $19 $18 $19 $19 $23 $23 $23 $25 $25 Cost of Revenue General & Administrative Sales & Marketing Research & Development Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Non-GAAP Operating Expenses % of Revenue 14% 14% 17% 15% 16% 16% 15% 17% 14% 15% 29% 27% 29% 25% 24% 34% 33% 38% 33% 32% Cost of Revenue General & Administrative Sales & Marketing Research & Development Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Some figures may not tie due to rounding. 93% 89% 100% 87% 87% $64 $62 $62 $65 $68 18
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Productivity and Capital Allocation 1. Annualized revenue / FTE = Quarterly revenue x 4 / average # of full-time employees in quarter. Some figures may not tie due to rounding. Annualized Revenue / FTE ($K)1 Productivity remains a key priority Revenue / FTE improved 23% year-over-year in Q3 Strong balance sheet a key differentiator: $382M in cash, cash equivalents, and marketable securities at Q3-end Generated $28M in cash flow from operations for the nine months ended September 30, 2026 $491 $551 $678 66% 12% 23% Annualized Revenue / FTE ($K)% Y/Y Change Q3'24 Q3'25 Q3'26 19
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Near-Term Priorities & Outlook
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Near-Term Priorities Product A better experience for neighbors Faves, year-round: trusted local recommendations AI can’t replicate Contributions: keep turning more neighbors into contributors Ask: from instant answers to neighbor- powered help Updates: smarter notifications and AI neighborhood summaries Monetization Differentiated value for large advertisers and SMBs Performance ad formats: dynamic product, multi-location, app installs Neighborhood Intelligence: differentiated hyper-local targeting and measurement Local businesses: faster onboarding, more lead-gen partners, and more products for businesses to grow with 21
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Financial Outlook Some figures may not tie due to rounding. Outlook as of 11/5/2026. Fourth Quarter Full Year Additional details Revenue $78M - $80M $293M - $295M Given typical Q4 seasonality, outlook assumes Platform WAU to be flat sequentially Adjusted EBITDA $10M - $11M $30M - $31M 22
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Appendix
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24 Condensed Consolidated Balance Sheets in thousands, except per share data Some figures may not tie due to rounding. September 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 67,537 $ 63,341 Marketable securities 314,164 341,429 Accounts receivable, net of allowance of $471 and $491 as of September 30, 2026 and December 31, 2025, respectively 34,540 34,385 Prepaid expenses and other current assets 11,825 9,084 Total current assets 428,066 448,239 Restricted cash, non-current 8,156 8,379 Property and equipment, net 1,741 1,639 Operating lease right-of-use assets 9,245 11,575 Goodwill 1,211 1,211 Other assets 15,430 15,760 Total assets $ 463,849 $ 486,803 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 5,843 $ 2,498 Operating lease liabilities, current 9,082 8,900 Accrued expenses and other current liabilities 21,259 20,550 Total current liabilities 36,184 31,948 Operating lease liabilities, non-current 16,460 23,351 Other liabilities, non-current 297 221 Total liabilities 52,941 55,520 Stockholders’ equity: Class A common stock, $0.0001 par value; 2,500,000 shares authorized, 257,450 and 262,446 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 26 26 Class B common stock, $0.0001 par value; 500,000 shares authorized, 127,467 and 127,681 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively 13 13 Additional paid-in capital 1,344,731 1,347,968 Accumulated other comprehensive income (loss) (1,377) 1,563 Accumulated deficit (932,485) (918,287) Total stockholders’ equity 410,908 431,283 Total liabilities and stockholders’ equity $ 463,849 $ 486,803
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25 Condensed Consolidated Statements of Operations in thousands, except per share data Some figures may not tie due to rounding. Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue $ 78,771 $ 68,898 $ 214,994 $ 188,167 Costs and expenses: Cost of revenue 13,184 10,437 35,707 30,527 Research and development 32,852 35,674 97,853 103,790 Sales and marketing 21,298 23,766 61,998 70,212 General and administrative 15,636 16,250 44,631 48,156 Total costs and expenses 82,970 86,127 240,189 252,685 Loss from operations (4,199) (17,229) (25,195) (64,518) Interest income 3,831 4,624 11,701 14,380 Other income (expense), net (184) (121) (166) 507 Loss before income taxes (552) (12,726) (13,660) (49,631) Provision for income taxes 107 131 538 540 Net loss $ (659) $ (12,857) $ (14,198) $ (50,171) Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.00) $ (0.03) $ (0.04) $ (0.13) Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 385,964 387,297 384,611 384,791
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26 Condensed Consolidated Statements of Cash Flows in thousands Some figures may not tie due to rounding. Nine Months Ended September 30, 2026 2025 Cash flows from operating activities Net loss $ (14,198) $ (50,171) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,023 1,533 Stock-based compensation 43,983 50,798 Accretion of investments (716) (1,908) Other 888 409 Changes in operating assets and liabilities: Accounts receivable, net (135) (1,883) Prepaid expenses and other assets (2,452) (2,697) Operating lease right-of-use assets 2,330 2,129 Accounts payable 3,304 4,081 Operating lease liabilities (6,709) (6,275) Accrued expenses and other liabilities 785 983 Net cash provided by (used in) operating activities 28,103 (3,001) Cash flows from investing activities Purchases of property and equipment (1,044) (502) Purchases of marketable securities (199,219) (220,364) Sales of marketable securities 91,671 105,258 Maturities of marketable securities 131,724 151,580 Net cash provided by investing activities 23,132 35,972 Cash flows from financing activities Proceeds from issuance of common stock upon exercise of stock options 2,721 2,287 Proceeds from issuance of common stock under employee stock purchase plan 808 1,325 Tax withholdings on restricted stock units (15,266) (14,246) Repurchase of common stock (35,483) (14,528) Net cash used in financing activities (47,220) (25,162) Effect of exchange rate changes on cash and cash equivalents (42) (63) Net increase in cash, cash equivalents, and restricted cash 3,973 7,746 Cash, cash equivalents, and restricted cash at beginning of period 71,720 56,721 Cash, cash equivalents, and restricted cash at end of period $ 75,693 $ 64,467
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Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present non-GAAP cost of revenue, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP total operating expenses, Adjusted EBITDA and Adjusted EBITDA margin in this Investor Update. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP. We use these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. These measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance. We exclude the following items from one or more of our non-GAAP financial measures: stock-based compensation expense (non-cash expense calculated by companies using a variety of valuation methodologies and subjective assumptions), depreciation and amortization (non-cash expense), interest income, provision for income taxes, and, if applicable, restructuring charges and acquisition-related costs. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) stock-based compensation expense has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy, (2) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and our non-GAAP measures do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (3) Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) interest expense (if any), or the cash requirements necessary to service interest or principal payments on debt (if any), which reduces cash available to us; or (c) tax payments that may represent a reduction in cash available to us. The non-GAAP measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. A reconciliation of these non-GAAP measures has been provided on the following pages. 27
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28 Adjusted EBITDA Reconciliation in thousands Some figures may not tie due to rounding. Three Months Ended September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 Net loss $ (12,857) $ (4,033) $ (11,417) $ (2,122) $ (659) Depreciation and amortization 475 402 356 329 338 Stock-based compensation 16,600 14,545 14,762 14,873 14,348 Interest income (4,624) (4,378) (4,036) (3,834) (3,831) Provision for income taxes 131 1,085 137 294 107 Restructuring charges 4,660 — — — — Adjusted EBITDA $ 4,385 $ 7,621 $ (198) $ 9,540 $ 10,303 Net loss % Margin (19%) (6%) (19%) (3%) (1%) Adjusted EBITDA % Margin 6% 11% (0%) 13% 13%
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29 Non-GAAP Operating Expenses Reconciliation in thousands Some figures may not tie due to rounding. Three Months Ended September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 Cost of Revenue Reconciliation: Cost of Revenue, GAAP 10,437 10,460 11,048 11,475 13,184 Stock-based compensation 702 650 622 555 655 Cost of Revenue, Non-GAAP 9,735 9,810 10,426 10,920 12,529 % of revenue, GAAP 15% 15% 18% 15% 17% % of revenue, Non-GAAP 14% 14% 17% 15% 16% Research and Development Reconciliation: Research and Development, GAAP 35,674 31,415 32,016 32,985 32,852 Depreciation and amortization 230 183 168 181 186 Stock-based compensation 9,497 8,488 8,363 8,039 7,575 Restructuring charges 2,660 — — — — Research and Development, Non-GAAP 23,287 22,744 23,485 24,765 25,091 % of revenue, GAAP 52% 45% 52% 44% 42% % of revenue, Non-GAAP 34% 33% 38% 33% 32% Sales and Marketing Reconciliation: Sales and Marketing, GAAP 23,766 20,817 19,646 21,054 21,298 Depreciation and amortization 177 161 134 95 95 Stock-based compensation 2,229 1,964 1,935 2,028 2,004 Restructuring charges 1,250 — — — — Sales and Marketing, Non-GAAP 20,110 18,692 17,577 18,931 19,199 % of revenue, GAAP 34% 30% 32% 28% 27% % of revenue, Non-GAAP 29% 27% 29% 25% 24%
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30 Non-GAAP Operating Expenses Reconciliation in thousands Some figures may not tie due to rounding. Three Months Ended September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 General and Administrative Reconciliation: General and Administrative, GAAP 16,250 14,211 14,289 14,706 15,636 Depreciation and amortization 68 58 54 53 57 Stock-based compensation 4,172 3,443 3,842 4,251 4,114 Restructuring charges 750 — — — — General and Administrative, Non-GAAP 11,260 10,710 10,393 10,402 11,465 % of revenue, GAAP 24% 20% 23% 20% 20% % of revenue, Non-GAAP 16% 15% 17% 14% 15% Total Operating Expense Reconciliation: Operating Expenses, GAAP 86,127 76,903 76,999 80,220 82,970 Depreciation and amortization 475 402 356 329 338 Stock-based compensation 16,600 14,545 14,762 14,873 14,348 Restructuring charges 4,660 — — — — Total Operating Expenses, Non-GAAP 64,392 61,956 61,881 65,018 68,284 % of revenue, GAAP 125% 111% 125% 108% 105% % of revenue, Non-GAAP 93% 89% 100% 87% 87%
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31 investors.nextdoor.com · ir@nextdoor.com