KIND INVESTOR ALERT: Edelson Lechtzin LLP Urges Nextdoor Holdings, Inc. (NYSE: KIND) f/k/a Khosla Ventures Acquisition Co. II (NASDAQ: KVSB) Shareholders to Consult Counsel About the Pending Securities Fraud Class Action

NEWTOWN, Pa., March 18, 2024 (GLOBE NEWSWIRE) -- The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of Class A common stock purchasers of Nextdoor Holdings, Inc. (NYSE: KIND) f/k/a Khosla Ventures Acquisition Co. II (NASDAQ: KVSB) between July 6, 2021, and November 8, 2022, inclusive (the “Class Period”).Investors who purchased Nextdoor Class A common stock may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff, no later than *April 29, 2024**. *Please contact Edelson Lechtzin LLP at *844-696-7492* to discuss your investment losses, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed *HERE*.

*Background on Nextdoor Holdings, Inc. *

Nextdoor Holdings is a San Francisco-based company that operates a hyperlocal social networking service for neighborhoods. It was launched in the United States in October 2011 and was available in 11 countries as of May 2023.

*The Securities Fraud Claims*

The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Nextdoor’s financial results before the November 2021 merger with Khosla Ventures Acquisition Co. II, had been temporarily inflated by the transient effects of the COVID-19 pandemic, which had pulled forward demand for Nextdoor’s platform and cannibalized future advertising revenue growth; (ii) rather than being sustainable, such growth trends had already begun reversing at the start of the Class Period; (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 or U.S. weekly active users; and (v) as a result, Nextdoor’s revenue guidance for fiscal year 2022 had no reasonable basis in fact and it was tracking tens of millions of dollars below the revenue trajectory provided to investors.

Nextdoor reported on March 1, 2022, that its revenue growth for Q4 2021 had decreased by 18% to 48%, which was lower than the 66% growth rate it had reported in the previous quarter to investors. The company also revealed that its average revenue per user for the quarter was $1.65, indicating a significant decline of 26% to just 12% from the 38% growth it had achieved in Q3 2021. This suggests that Nextdoor’s ability to generate income from its platform was not performing well. As a result of this news, the price of Nextdoor’s stock dropped by around 14%.

On May 10, 2022, Nextdoor announced that its global weekly active user count had only increased by 1%. Additionally, the number of weekly active users in the United States had declined by approximately 100,000 from the previous period. As a result of this news, the stock price of Nextdoor fell by approximately 8%.

On August 9, 2022, the Company disclosed that its platform experienced a significant decline in Q2 2022. It was reported that revenue growth had slowed to only 19% during the quarter and Nextdoor’s U.S. weekly active users had decreased for the second quarter in a row to 29.2 million. On this news, the price of Nextdoor shares plummeted 25%.

On November 8, 2022, Nextdoor announced that its Q3 2022 revenue had declined by $1 million compared to the prior quarter, bringing it to $54 million. The company’s quarterly average revenue per weekly active user growth was also negative, with a contraction of 12% compared to the same quarter in the prior year. On this news, the price of Nextdoor common stock fell 11%, causing significant financial losses for investors.

In aggregate, the price of Nextdoor common stock fell nearly 90% from the $18.59 per share price high immediately after the merger, causing shareholders to suffer substantial losses.

*For more information, please contact:*

Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com  
Web: www.edelson-law.com

Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.

This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.