PHILADELPHIA, April 26, 2024 (GLOBE NEWSWIRE) -- Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II (“Nextdoor” or the “Company”) (NYSE: KIND) on behalf of purchasers of Nextdoor’s securities between July 6, 2021 and November 8, 2022, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Nextdoor securities during the Class Period may, no later than April 29, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015 or CLICK HERE.
Nextdoor operates a hyper-local online social networking platform that connects neighbors, businesses, and government agencies. The Company was created through the November 5, 2021 merger (the “Merger”) of privately-held Nextdoor, Inc. and a publicly traded special purpose acquisition company (SPAC) known as Khosla Ventures Acquisition Co. II.
According to the complaint, during the Class Period, defendants misrepresented and/or failed to disclose that: (i) Nextdoor’s financial results prior to the Merger had been inflated by the short-term effects of the COVID-19 pandemic, which had pulled forward demand for Nextdoor’s platform and cannibalized future advertising revenue growth; (ii) growth trends had already begun to reverse; (iii) Nextdoor’s total addressable market was materially smaller than the 312 million households represented to investors; and (iv) by the start of the Class Period, Nextdoor’s most important market – the U.S. market – was already substantially saturated, impairing Nextdoor’s ability to monetize users and increase its average revenue per weekly active user (“ARPU”) or U.S. weekly active users (“WAUs”).
On March 1, 2022, Nextdoor reported that Q4 2021 revenue growth had declined sequentially by 18% to 48%, down from the 66% growth rate in the most recent quarter reported to investors. In addition, Nextdoor reported quarterly ARPU of $1.65, a substantial decline of 26% to just 12% from 38% growth in Q3 2021. This indicated that Nextdoor’s ability to monetize its platform was faltering. On this news, the price of Nextdoor common stock declined approximately 14%.
Next, on May 10, 2022, Nextdoor revealed that its global WAU growth had increased just 1% and that U.S. WAUs had actually suffered a sequential decline of approximately one hundred thousand users. On this news, the price of Nextdoor shares fell approximately 8%.
Thereafter, on August 9, 2022, the Company revealed that its platform continued to materially decline in Q2 2022, reporting that revenue growth had slowed to just 19% during the quarter and that Nextdoor’s U.S. WAUs had declined for the second quarter in a row to 29.2 million. On this news, the price of Nextdoor shares fell approximately 25%.
Finally, on November 8, 2022, Nextdoor reported that its Q3 2022 revenues declined by $1 million sequentially, to $54 million, and that the Company’s quarterly ARPU growth was increasingly negative, contracting by 12% compared to the prior year quarter. On this news, the price of Nextdoor Class A common stock fell approximately 11%, further damaging investors.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
