Nextdoor : Q1 2024 Investor Presentation

Investor Presentation - May 2024

Disclaimer	2

Certain statements in this presentation 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 second quarter of 2024 and full year 2024, trends and expectations regarding our business and operating results, our expectations on Verified Neighbor growth, the expected benefits to our cost reduction plan and share repurchases, our business strategy and plans, and our objectives and future operations, including our expansion into new markets.

Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date of this investor presentation, 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; 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; 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 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 March 31, 2024, filed on May 7, 2024, and our other SEC filings, which are 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 presentation 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 presentation.

This presentation 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 Presentation to their nearest GAAP equivalent is included in the Appendix to this Presentation. 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-lookingnon-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. Additionally, to the extent that forward-lookingnon-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-lookingnon-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Business Overview

Nextdoor is the neighborhood network

11	1 in 3
Countries	U.S. Households

92M+	43M+
Verified Neighbors	Weekly Active
(VNs) and growing	Neighbors (WAU)

3

Network effects with online & offline connection is unique

Each social link is highly valuable because most commerce is local

Secular shift towards digital advertising

High barrier to entry: network difficult & time consuming to build

Unique local knowledge graph & proprietary data set - amplified by AI

Nextdoor is the definitive consumer internet service in local

Metrics as of 3/31/2024.

Business Overview

Q1'24 highlights

>90%

of global VNs joined

organically

~50%

of total revenue from

self-serve

36%

increase in session depth

4

Organic Verified Neighbor additions in Q1 were 2x higher YoY

Global session depth1 maintained its acceleration at +36% YoY

~50% of VNs are active weekly, ~50% of WAU are active daily

100% of self-serve customers now use our proprietary ads platform

>50% YoY growth in new mid-market advertisers added

Cash balance of $498M can fund long-term growth

1.	Sessions are defined as the period of time a user is active on the site or app and views at least one piece of content. If a
Verified Neighbors and WAU as of 3/31/2024.	user is inactive for 5 minutes or more, any future activity is attributed to a new session. Session depth reflects the
number of ad impression opportunities during each user session.

Investment Thesis

5

Multiple drivers of growth and value creation

Massive TAM + Upside

• Everyoneis a neighbor. Opportunity to grow into 300M+ households in existing markets
• Substantial opportunity outside of Nextdoor's 11 current markets

Powerful Network Effects

• 92M+ Verified Neighbors drive high-quality UGC creation/connectivity; adding add'l. content a priority
• Strong networks drive efficient neighbor acquisition; >90% of new neighbors join organically

Valuable User Base + Data

Engaged User Base

• Nextdoor has the highest-quality data: verified, real-time, and authentic
• 62% greater reach with high income households (HIH) than peers1

• Approximately 50% of Verified Neighbors are active weekly
• Approximately 50% of WAU are active daily

Clear Path To Profitability	ARPU Growth Levers
●	Anticipated quarterly free cash flow breakeven	●	Neighbors engaging more deeply, with further
●	by end of Q4'24	●	opportunity to increase usage across surfaces
Recent cost rationalization speeds time to	New ad stack drives advertisers outcomes, and
	profitability while maintaining focus on growth		improved revenue yields

Metrics as of 3/31/2024.

(1) Source: GWI Core, USA, Q3 2022 - Q2 2023. Reflects households with >$200K annual income. Selected peers data represents an average of X, Instagram, Pinterest, Facebook, and TikTok statistics.

Investment Thesis

Our Growth Algorithm

User & engagement

growth

with strong underlying session

depth

New advertiser

growth

accelerated by self-serve

capabilities

Durable advertiser

retention

enabled by our proprietary

ads platform

Reduced cost base

to accelerate growth and

positive FCF

Increasing organic user	Self-Serve in Q1'24:	We retained 92% of our	Targeting 15 ppt of
acquisition and	~50% of revenue, strong	top 50 customers from	Adj. EBITDA margin1
deepening engagement	new logo growth	Q1'23 in Q1'24	expansion in FY 2024

1. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.
2. A reconciliation of non-GAAP metrics to their most comparable GAAP measures is provided at the end of this presentation.

Investment Thesis

7

A growing base of engaged users...

Annual	Quarterly
Avg. Weekly Active Users (WAU), millions
16%	16%
2020-2023 CAGR	Q1 2021-Q1 2024 CAGR
41.6	42.4	43.4
38.0	36.7
31.3
26.7	27.6

+37%

+17%

+21%

+9%

+12%

+33%

+16%

+2%

U.S. International

WAU is defined as a Nextdoor user who opens our application, logs on to our website, or engages with an email with monetizable content at least once during a defined 7-day period. Some figures may not tie due to rounding.

Investment Thesis

8

…Sets up long-term revenue growth

AnnualQuarterly

21%	16%
2020-2023 CAGR	Q1 2021-Q1 2024 CAGR

+49%

+56%

+11%

+3%

+45%

+48%

-2%

+7%

Some figures may not tie due to rounding.

Usage and Engagement

9

People use Nextdoor to enrich their neighborhoods every day

Newsfeed

Discover

For Sale & Free

Communities

Usage and Engagement

10

Mechanics for driving Verified Neighbor (VN) growth…

Our growth strategy focuses on driving brand awareness driven by building value through invites and content

Our current focus

Invites	Content		Earned / WOM
● Digital Invite	● Partnerships	●	Word-of-mouth (WOM)
● Neighbor-to-guest	● SEO	●	Content Engine
● Page-to-guest	● Social Sharing	●	Brand / Earned Media
		●	Marketing Partnerships
		●	Unattributed halo

Paid

• Invitation Letters
• Digital Paid (FB, Google, etc)