According to the Complaint, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Nextdoor’s financial results prior to the merger were inflated by the effects of the COVID-19 pandemic, which pulled forward demand for Nextdoor’s platform at the expense of future advertising revenue growth; (ii) rather than sustainable growth, the trend had 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 revenue per weekly active user (“ARPU”).

On November 8, 2022, Nextdoor reported that its revenues during the quarter declined sequentially by $1 million to $54 million, and that its quarterly ARPU growth was decreasing by 12% compared to the prior year quarter.

On this news, the Company’s stock price fell $0.26 or 11%, to close at $2.06 per share on November 9, 2022.

If you wish to serve as lead plaintiff, you must move the Court no later than April 29, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

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