SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II - KIND
NEW YORK, April 12, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Nextdoor Holdings, Inc. f/k/a Khosla Ventures Acquisition Co. II ("Nextdoor" or the "Company") (NYSE: KIND). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Nextdoor and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until April 29, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Nextdoor securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On March 1, 2022, Nextdoor reported its financial results for the fourth quarter and full year ending December 31, 2021. Despite previously claiming that accelerating growth trends were being sustained, the Company reported that the revenue growth rate in the fourth quarter had declined sequentially by 18% to 48% year-over-year growth. In addition, Nextdoor reported quarterly average revenue per weekly active user ("ARPU") of $1.65, revealing that the ARPU growth rate in the quarter had declined substantially by 26% to just 12% year-over-year growth from 38% growth in the third quarter, which indicated that the Company's ability to monetize its platform was faltering.
On this news, Nextdoor's stock price fell $0.57 per share, or 14%, to close at $5.39 per share on March 4, 2022. Then, on November 8, 2022, Nextdoor filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q announcing the Company's financial results for the third quarter ended September 30, 2022 ("3Q22 Form 10-Q"). The 3Q22 Form 10-Q revealed that Nextdoor's business had continued to deteriorate. Specifically, the 3Q22 Form 10-Q reported that Nextdoor's revenues during the quarter declined sequentially by $1 million to $54 million, representing just 2% year-over-year growth, and that the Company's quarterly ARPU growth was increasingly negative, contracting by 12% compared to the prior year quarter.
During the Company's corresponding earnings call, Chief Financial Officer Michael Doyle reported that Nextdoor was reducing revenue guidance again by an additional $12 million, warning investors that Nextdoor now expected fiscal 2022 revenues of just $210.5 million at the midpoint—far below the up to $256 million figure earlier provided to investors.
On this news, Nextdoor's stock price fell $0.26 per share, or 11.21%, to close at $2.06 per share on November 9, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
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