Nextdoor Holdings, a social networking company, saw its stock plummet 17.27% in the intraday trading session on Friday. This sharp decline was driven by the company's disappointing fourth-quarter earnings report, which missed analysts' expectations and showed wider losses.
For the quarter ended December 31, 2024, Nextdoor Holdings reported an adjusted loss of $0.08 per share, higher than the average analyst estimate of a $0.04 loss per share. While revenue grew by 17.4% year-over-year to $65.23 million, it was not enough to offset the larger-than-expected losses.
The company reported a quarterly net loss of $12.12 million, which likely weighed heavily on investor sentiment. Despite the revenue growth, Nextdoor Holdings' struggles to control costs and achieve profitability appear to be a significant concern for investors, leading to the sharp sell-off in the stock.
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