Nextdoor Stock Falls. Social Media Company Cuts Staff by 25%.

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The layoffs will affect almost 200 positions.

Nextdoor is cutting its staff by 25% as the locally focused social network adjusts to a more difficult advertising environment.

Friar said she had hoped for a more sustained recovery in the ad market in the second half of the year, but that the company didn’t see that in the third quarter and isn’t expecting a pickup in the fourth quarter either. Friar said the company is seeing particular weakness in the financial services and home services vertical markets.

For the third quarter, Nextdoor posted revenue of $56 million, up 4% from a year ago and slightly below Wall Street’s consensus estimate of $56.3 million. Adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, was a loss of $20 million, widening from a loss of $18 million in the year-ago period. Net loss was $38 million, versus $35 million a year ago. Weekly active users in the quarter were 40.4 million, up 6% from a year ago.

 

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