Cover
Cover | 12 Months Ended |
Dec. 31, 2021 | |
Cover [Abstract] | |
Entity Registrant Name | Nextdoor Holdings, Inc. |
Amendment Flag | true |
Amendment Description | This Post-Effective Amendment No. 1 (this “Post-Effective Amendment No. 1”) to the Registration Statement on Form S-1 (File No. 333-261252) (the “Registration Statement”), as originally declared effective by the SEC on December 1, 2021, is being filed to include information contained in the registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on March 15, 2022, and to update certain other information in the Registration Statement. The information included in this filing amends the Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement on November 22, 2021. |
Entity Central Index Key | 0001846069 |
Document Type | POS AM |
Document Period End Date | Dec. 31, 2021 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 521,812 | $ 83,642 |
Marketable securities | 193,999 | 53,341 |
Accounts receivable, net of allowance of $425 and $313 as of December 31, 2021 and 2020, respectively | 29,673 | 21,818 |
Prepaid expenses and other current assets | 16,259 | 5,453 |
Restricted cash, current | 0 | 1,101 |
Total current assets | 761,743 | 165,355 |
Property and equipment, net | 12,545 | 5,718 |
Operating lease right-of-use assets | 59,422 | 37,776 |
Intangible assets, net | 4,835 | 6,987 |
Goodwill | 1,211 | 1,211 |
Other assets | 330 | 700 |
Total assets | 840,086 | 217,747 |
Current liabilities: | ||
Accounts payable | 6,163 | 3,354 |
Operating lease liabilities, current | 7,131 | 3,348 |
Liability for unvested restricted stock | 4,765 | 10,483 |
Accrued expenses and other current liabilities | 15,444 | 14,998 |
Total current liabilities | 33,503 | 32,183 |
Operating lease liabilities, non-current | 61,598 | 36,254 |
Total liabilities | 95,101 | 68,437 |
Commitments and contingencies (Note 9) | ||
Redeemable convertible preferred stock | 447,166 | |
Stockholders' equity (deficit): | ||
Additional paid-in capital | 1,225,815 | 87,945 |
Accumulated other comprehensive loss | (529) | (797) |
Accumulated deficit | (480,339) | (385,014) |
Total stockholders' equity (deficit) | 744,985 | (297,856) |
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | 840,086 | 217,747 |
Class A Common Stock | ||
Stockholders' equity (deficit): | ||
Common stock | 8 | 0 |
Class B Common Stock | ||
Stockholders' equity (deficit): | ||
Common stock | $ 30 | $ 10 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable, allowance for credit loss | $ 425 | $ 313 | |
Redeemable convertible preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | |
Redeemable convertible preferred stock authorized (in shares) | 0 | 190,477,000 | |
Redeemable convertible preferred stock issued (in shares) | 0 | 190,477,000 | |
Redeemable convertible preferred stock outstanding (in shares) | 0 | 190,477,000 | [1] |
Redeemable convertible preferred stock, aggregate liquidation preference | $ 447,890 | ||
Common stock authorized (in shares) | 375,788,212 | ||
Class A Common Stock | |||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | |
Common stock authorized (in shares) | 2,500,000,000 | 0 | |
Common stock issued (in shares) | 78,954,000 | 0 | |
Common stock outstanding (in shares) | 78,954,000 | 0 | |
Class B Common Stock | |||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | |
Common stock authorized (in shares) | 500,000,000 | 375,788,000 | |
Common stock issued (in shares) | 304,701,000 | 103,777,000 | |
Common stock outstanding (in shares) | 304,701,000 | 103,777,000 | |
[1] | The shares of the Company’s common and redeemable convertible preferred stock prior to the Reverse Recapitalization (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of 3.1057 established in the Merger Agreement as described in Note 3. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 192,197 | $ 123,284 |
Costs and expenses: | ||
Cost of revenue | 28,813 | 21,586 |
Research and development | 97,096 | 69,231 |
Sales and marketing | 106,430 | 80,325 |
General and administrative | 54,664 | 28,793 |
Total costs and expenses | 287,003 | 199,935 |
Loss from operations | (94,806) | (76,651) |
Interest income | 177 | 727 |
Other income (expense), net | (539) | 817 |
Loss before income taxes | (95,168) | (75,107) |
Provision for income taxes | 157 | 127 |
Net loss | $ (95,325) | $ (75,234) |
Net loss per share attributable to common stockholders, basic (in USD per share) | $ (0.65) | $ (0.83) |
Net loss per share attributable to common stockholders, diluted (in USD per share) | $ (0.65) | $ (0.83) |
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 146,337 | 90,190 |
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 146,337 | 90,190 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (95,325) | $ (75,234) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 283 | (796) |
Change in unrealized loss on available-for-sale marketable securities | (15) | (36) |
Total other comprehensive income (loss) | 268 | (832) |
Comprehensive loss | $ (95,057) | $ (76,066) |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | ||
Balance at beginning of period (in shares) at Dec. 31, 2019 | [1] | 190,477 | ||||||
Balance at beginning of period at Dec. 31, 2019 | $ 447,166 | |||||||
Balance at end of period (in shares) at Dec. 31, 2020 | [1] | 190,477 | ||||||
Balance at end of period at Dec. 31, 2020 | $ 447,166 | |||||||
Balance at beginning of period (in shares) at Dec. 31, 2019 | 0 | 97,777 | [1] | |||||
Balance at beginning of period at Dec. 31, 2019 | (257,296) | $ 0 | $ 10 | $ 52,439 | $ 35 | $ (309,780) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options, net of repurchases of unvested common stock (in shares) | [1] | 6,801 | ||||||
Issuance of common stock upon exercise of stock options, net of repurchases of unvested common stock | 6,367 | 6,367 | ||||||
Cancellation of restricted stock and unvested common stock issued in connection with acquisition (in shares) | [1] | (801) | ||||||
Release of holdback stock in connection with acquisition | 291 | 291 | ||||||
Vesting of early exercised stock options | 522 | 522 | ||||||
Vesting of restricted stock | 5,718 | 5,718 | ||||||
Stock-based compensation | 22,608 | 22,608 | ||||||
Other comprehensive income (loss) | (832) | (832) | ||||||
Net loss | (75,234) | (75,234) | ||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 0 | 103,777 | [1] | |||||
Balance at end of period at Dec. 31, 2020 | $ (297,856) | $ 0 | $ 10 | 87,945 | (797) | (385,014) | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Conversion of redeemable convertible preferred stock into Class B common stock in connection with the Reverse Recapitalization (in shares) | [1] | (190,477) | ||||||
Conversion of redeemable convertible preferred stock into Class B common stock in connection with the Reverse Recapitalization | $ (447,166) | |||||||
Balance at end of period (in shares) at Dec. 31, 2021 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of redeemable convertible preferred stock into Class B common stock in connection with the Reverse Recapitalization (in shares) | [1] | 190,477 | ||||||
Conversion of redeemable convertible preferred stock into Class B common stock in connection with the Reverse Recapitalization | $ 447,166 | $ 19 | 447,147 | |||||
Issuance of common stock upon the Reverse Recapitalization, net of issuance costs (in shares) | 78,954 | |||||||
Issuance of common stock upon the Reverse Recapitalization, net of issuance costs | 622,588 | $ 8 | 622,580 | |||||
Release of restricted stock units (in shares) | [1] | 101 | ||||||
Tax withholdings on release of restricted stock units | $ (863) | (863) | ||||||
Issuance of common stock upon exercise of stock options, net of repurchases of unvested common stock (in shares) | 10,325 | 10,325 | [1] | |||||
Issuance of common stock upon exercise of stock options, net of repurchases of unvested common stock | $ 15,334 | $ 1 | 15,333 | |||||
Issuance of common stock in connection with acquisition (in shares) | [1] | 21 | ||||||
Vesting of early exercised stock options | 442 | 442 | ||||||
Vesting of restricted stock | 5,717 | 5,717 | ||||||
Stock-based compensation | 47,514 | 47,514 | ||||||
Other comprehensive income (loss) | 268 | 268 | ||||||
Net loss | (95,325) | (95,325) | ||||||
Balance at end of period (in shares) at Dec. 31, 2021 | 78,954 | 304,701 | [1] | |||||
Balance at end of period at Dec. 31, 2021 | $ 744,985 | $ 8 | $ 30 | $ 1,225,815 | $ (529) | $ (480,339) | ||
[1] | The shares of the Company’s common and redeemable convertible preferred stock prior to the Reverse Recapitalization (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of 3.1057 established in the Merger Agreement as described in Note 3. |
CONSOLIDATED STATEMENTS OF RE_2
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) | Dec. 31, 2021 |
Recapitalization exchange ratio | 3.1057 |
Class B Common Stock | |
Recapitalization exchange ratio | 3.1057 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (95,325) | $ (75,234) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,172 | 3,058 |
Stock-based compensation | 47,514 | 22,608 |
Bad debt expense | 317 | 291 |
Other | 3 | 239 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (8,172) | (3,173) |
Prepaid expenses and other current assets | (4,087) | 2,472 |
Operating lease right-of-use assets | 6,605 | 5,181 |
Other assets | 370 | (221) |
Accounts payable | 2,759 | 15 |
Operating lease liabilities | (5,844) | (4,529) |
Accrued expenses and other current liabilities | 420 | 7,689 |
Net cash used in operating activities | (51,268) | (41,604) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (8,846) | (5,023) |
Purchases of marketable securities | (199,832) | (77,600) |
Sales of marketable securities | 2,411 | 21,826 |
Maturities of marketable securities | 56,745 | 97,589 |
Net cash provided by (used in) investing activities | (149,522) | 36,792 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options, net of repurchases | 15,334 | 6,367 |
Proceeds from the Reverse Recapitalization | 628,489 | 0 |
Payment of transaction costs related to the Reverse Recapitalization | (5,384) | 0 |
Tax withholdings on release of restricted stock units | (863) | 0 |
Net cash provided by financing activities | 637,576 | 6,367 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 283 | (796) |
Net increase in cash, cash equivalents, and restricted cash | 437,069 | 759 |
Cash, cash equivalents, and restricted cash at beginning of period | 84,743 | 83,984 |
Cash, cash equivalents, and restricted cash at end of period | 521,812 | 84,743 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets: | ||
Cash and cash equivalents | 521,812 | 83,642 |
Restricted cash | 0 | 1,101 |
Total cash, cash equivalents, and restricted cash | 521,812 | 84,743 |
Supplemental cash flow disclosures: | ||
Cash paid for taxes | 313 | 30 |
Non-cash investing and financing activities: | ||
Vesting of restricted stock and early exercised stock options | 6,159 | 6,240 |
Lease liabilities arising from obtaining right-of-use assets | 34,971 | 40,790 |
Unpaid deferred transaction costs | 314 | 0 |
Conversion of redeemable convertible preferred stock into Class B common stock in connection with the Reverse Recapitalization | $ 447,166 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Nextdoor Holdings, Inc. (“Nextdoor” or the “Company”) is headquartered in San Francisco, California. Nextdoor’s purpose is to cultivate a kinder world where everyone has a neighborhood they can rely on. That purpose enables the Company’s mission to be the neighborhood hub for trusted connections and the exchange of helpful information, goods, and services. On November 5, 2021 (the “Closing”), the Company consummated the transactions contemplated by the Agreement and Plan of Merger, dated July 6, 2021, as amended on September 30, 2021 (the “Merger Agreement”), by and among Khosla Ventures Acquisition Co. II (“KVSB”), a special purpose acquisition company, Lorelei Merger Sub Inc. (“Merger Sub”), and Nextdoor, Inc. (“Legacy Nextdoor”), with Legacy Nextdoor surviving as a wholly owned subsidiary of KVSB (the “Merger” and, collectively with the other transactions that occurred in connection with the Merger, including the PIPE Investment (as described in Note 3, the “Reverse Recapitalization”). In connection with the Closing, KVSB was renamed to Nextdoor Holdings, Inc. Reported results from operations included herein prior to the Reverse Recapitalization are those of Legacy Nextdoor. See Note 3 - Reverse Recapitalization for further details. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on December 31. The Merger was accounted for as a reverse recapitalization in accordance with GAAP. This determination was primarily based on the evaluation of the following facts and circumstances: • Legacy Nextdoor stockholders had a relative majority of the voting power of Nextdoor; • The Board of Directors of Nextdoor had ten members, and Legacy Nextdoor stockholders had the ability to nominate a majority of the members of the Board of Directors; • Legacy Nextdoor’s senior management comprised the senior management roles of Nextdoor and were responsible for the day-to-day operations; • Nextdoor assumed the Nextdoor Holdings, Inc. name and Legacy Nextdoor’s corporate headquarters; and • The intended strategy and operations of Nextdoor continued Legacy Nextdoor’s strategy and operations to leverage technology to connect millions of neighbors online and in real life to build stronger, more vibrant, and resilient neighborhoods. Under this method of accounting, KVSB was treated as the “acquired” company for financial reporting purposes. Accordingly, the financial statements of Nextdoor represent the continuation of the financial statements of Legacy Nextdoor, with the Merger reflected as the equivalent of Nextdoor issuing common stock for the net assets of KVSB, accompanied by a recapitalization. The shares and corresponding capital amounts and all per share data related to Legacy Nextdoor’s outstanding redeemable convertible preferred stock, common stock, and stock-based awards prior to the Reverse Recapitalization have been retroactively adjusted using the Exchange Ratio (as defined in Note 3). The conversion of the outstanding shares of Legacy Nextdoor redeemable convertible preferred stock into shares of Class B common stock in connection with the Reverse Recapitalization and the issuance of Class A common stock are presented as of the Closing of the Merger in the consolidated statements of redeemable convertible preferred stock and stockholders’ equity (deficit). The net assets of KVSB were recognized as of the Closing at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger are those of Legacy Nextdoor and Legacy Nextdoor’s operations are the only ongoing operations of Nextdoor. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates include, but are not limited to, valuation of financial instruments, valuation of common stock through the date of the Reverse Recapitalization, valuation of stock-based awards, revenue recognition, collectability of accounts receivable, valuation of acquired intangible assets and goodwill, useful lives of intangible assets, useful lives of property and equipment, the incremental borrowing rate applied in lease accounting, income taxes and deferred income tax assets and associated valuation allowances. The Company bases these estimates and assumptions on historical experience and various other assumptions that it considers reasonable. The actual results could differ materially from these estimates. Foreign Currency The functional currency of the Company’s international subsidiaries is generally their local currency. The financial statements of these subsidiaries are translated into U.S. dollars using month-end exchange rates for assets and liabilities, historical exchange rates for equity, and average exchange rates for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Unrealized foreign exchange gains and losses due to the re-measurement of monetary assets and liabilities denominated in non-functional currencies and realized foreign exchange gains and losses on foreign exchange transactions are recorded in other income (expense), net in the consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with insignificant interest rate risk and original maturities of three months or less at the time of purchase. Cash and cash equivalents include demand deposits and money market accounts. Interest is accrued as earned. Cash and cash equivalents are recorded at cost, which approximates fair value. Marketable Securities The Company’s marketable securities are comprised of commercial paper, corporate securities, U.S. Treasury securities, and asset-backed securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its investments, including securities with stated maturities beyond 12 months, within current assets on the consolidated balance sheets. Available-for-sale securities are recorded at fair value each reporting period. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income (loss) on the consolidated balance sheets until realized. Interest income is reported within interest income in the consolidated statements of operations. The Company periodically evaluates its marketable securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value is less than the Company’s cost basis, the financial condition and near-term prospects of the investee. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. If the Company determines that the decline in an investment’s fair value is other than temporary, the difference is recognized as an impairment loss in the consolidated statements of operations. The Company did not consider any of its investments to be other-than-temporarily impaired for the years ended December 31, 2021 and 2020. Fair Value Measurements The Company accounts for certain assets and liabilities at fair value, which is the expected exchange price that would be received for an asset or an exit price paid to transfer a liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified into the following categories based on the degree to which the inputs the Company uses to measure the fair values are observable in active markets. The Company uses the most observable inputs available when measuring fair value. • Level 1: Observable inputs such as unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or inputs that are derived principally from or corroborated by observable market data or other means; and • Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Accounts Receivable and Allowance for Doubtful Accounts The Company records accounts receivable at the original invoiced amount. The Company maintains an allowance for doubtful accounts for any receivables it may be unable to collect and reduces the allowance when it determines that it will be unable to collect specific receivables. The Company determines the allowance based on its receivables’ age, the customers’ credit quality, and current economic conditions, among other factors that may affect the customers’ ability to pay. Restricted Cash The Company’s restricted cash balance is primarily invested in a savings account and pledged as collateral for standby letters of credit as security deposits for the Company’s office leases. As of December 31, 2021 and 2020, the Company had restricted cash balances of $0 million and $1.1 million, respectively. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Life Computer equipment and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of 5 years or the lease term Maintenance and repair costs are expensed as incurred. Capitalized Internal-use Software The Company capitalizes internal-use software costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities and post-implementation activities are expensed as incurred and costs related to the application development stage are capitalized. Capitalized costs are recorded as part of property and equipment, net. The capitalized costs related to internal-use software are amortized on a straight-line basis over an estimated useful life of two Business Combinations The Company includes the results of operations of the businesses that it acquires from the date of acquisition. The Company accounts for its acquisitions using the acquisition method of accounting. The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain identifiable assets include, but are not limited to, expected long-term market growth, future expected operating expenses, appropriate discount rates, and useful lives. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition costs, such as legal and consulting fees, are expensed as incurred. During the measurement period, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, which is not to exceed one year from the acquisition date, any subsequent adjustments are recorded in the consolidated statements of operations. See Note 4 - Acquisitions for additional information regarding the Company’s acquisition. Goodwill and Other Acquired Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the acquisition method of accounting. Goodwill is not amortized, but is tested for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances indicate that goodwill might be impaired. For all periods presented the Company had one reporting unit. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines, based on the qualitative factors, that the fair value of the reporting unit is more likely than not to be less than the carrying amount, then a quantitative goodwill impairment test is required. There was no impairment of goodwill recorded for the years ended December 31, 2021 and 2020. Intangible assets consist of identifiable intangible assets, including customer relationships and developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization costs are recorded in sales and marketing in the consolidated statements of operations. Impairment of Long-Lived Assets Property and equipment and other long-lived assets, such as finite-lived intangible assets, subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If impairment is indicated, an impairment loss is recognized as the amount by which the carrying amount exceeds the fair value. No impairment was required for long-lived assets for the years ended December 31, 2021 and 2020. Leases Results and disclosure requirements for all periods presented are presented under ASU 2016-02, Leases (“Topic 842”). The Company has various lease agreements related to real estate that are all classified as operating leases. At the inception of the Company’s contracts it determines if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected not to separate the lease and non-lease components within the contract. For leases that have greater than a 12-month lease term, right-of-use (“ROU”) assets and operating lease liabilities are recognized on the consolidated balance sheets at commencement date based on the present value of remaining fixed lease payments. Certain of the Company’s leases include options to extend the lease, with renewal terms that can extend the lease term from one month to five years. If the Company is reasonably certain to exercise an option to extend a lease, the extension period is included as part of the ROU asset and the operating lease liability. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at lease commencement in order to discount lease payments to present value for purposes of performing lease classification tests and measuring the lease liability. The Company’s incremental borrowing rate represents the rate of interest the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. The Company’s lease payments are largely fixed. Variable lease payments exist in circumstances such as payments for property tax, insurance, and common area maintenance. Variable lease payments are recognized in operating expense in the period in which the obligation for those payments are incurred. Certain of the Company’s leases include an option to early terminate the lease. The Company’s leases may contain early termination options which may result in an early termination fee. The Company early terminated one of its leases in October 2020 and incurred an early termination fee of $0.1 million. The Company has a significant lease for its new headquarters in San Francisco, California, which does not include an option to early terminate. The first portion of the lease commenced in June 2020 and the second, and final portion of the lease, commenced in January 2021. For the Company’s leases, it has elected to not apply the recognition requirements to leases of twelve months or less. These leases are expensed on a straight-line basis and no operating lease liability will be recorded. Concentration of Credit and Customer Risks Financial instruments that are exposed to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. The Company maintains cash and cash equivalents and marketable securities with domestic and foreign financial institutions and at times may exceed federally insured limits. The Company performs periodic evaluations of the relative credit standing of these institutions. The Company maintains investments in U.S. government debt and agency securities, corporate debt securities, and commercial paper that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances. One customer represented 10% or more of accounts receivable and no customer represented 10% or more of revenue as of and for the year ended December 31, 2021. No customer represented 10% or more of accounts receivable or revenue as of and for the year ended December 31, 2020. Revenue Recognition The Company generates a majority of its revenue from the delivery of advertising services. The Company determines revenue recognition through the following steps: (1) Identification of the contract, or contracts, with a customer (2) Identification of the performance obligations in the contract (3) Determination of the transaction price (4) Allocation of the transaction price to the performance obligations in the contract (5) Recognition of revenue when, or as, the Company satisfies a performance obligation The Company recognizes advertising revenue after satisfying its contractual performance obligation, which, for the majority of its advertising arrangements, is when an advertising impression is displayed to users. None of the Company’s arrangements contain minimum impression guarantees. The Company typically bills advertisers on a monthly basis and the payment terms vary by customer type and location. The Company has other advertising arrangements for the sale of neighborhood sponsorship and local deals which are typically fixed-fee arrangements and revenue is recognized on a straight-line basis over the non-cancellable contractual term of the agreement, generally beginning on the date its service is made available to the customer. Deferred Revenue In certain advertising arrangements the Company requires payment upfront from its customers. The Company records deferred revenue when it collects cash from customers in advance of revenue recognition. As of December 31, 2021 and 2020, deferred revenue was $3.4 million and $2.6 million, respectively, and included within accrued expenses and other current liabilities on the consolidated balance sheets. For the years ended December 31, 2021 and 2020, revenue recognized from deferred revenue at the beginning of each year was $2.5 million and $0.7 million, respectively. Practical Expedients and Exemptions The Company expenses sales commissions as incurred because the expected period of benefit is less than one year. These costs are recorded within sales and marketing expenses in the consolidated statements of operations. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery of the Company’s revenue generating activities, including third-party costs of hosting its platform and allocated personnel-related costs, including salaries, benefits and stock-based compensation for employees engaged in development of its revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting its advertising products and credit card transaction fees related to processing customer transactions. Research and Development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits and stock-based compensation for its employees engaged in research and development, as well as costs for consultants, contractors and third-party software. In addition, allocated overhead costs, such as facilities, information technology, and depreciation are included in research and development expenses. Sales and Marketing Sales and marketing expenses consist primarily of personnel-related costs and other costs which include salaries, commissions, benefits, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, allocated overhead costs, and amortization of acquired intangible assets. Sales and marketing expenses also include brand and performance marketing for both user and small and mid-sized customer acquisition, and neighbor services, which includes personnel-related costs for the Company's neighbor support team, its outsourced neighbor support function, and verification costs. General and Administrative General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, and stock-based compensation, for certain executives, finance, legal, information technology, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services, including consulting, third-party legal and accounting services, and allocated overhead costs. Advertising Costs Advertising costs which consist primarily of brand and performance marketing are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. Total advertising costs incurred were $37.5 million and $23.7 million for the years ended December 31, 2021 and 2020, respectively. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred income taxes are recognized for differences between financial reporting and tax bases of assets and liabilities at the enacted statutory tax rates in effect for the years in which the temporary differences are expected to reverse. Management makes an assessment of the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the U.S. net deferred tax assets have been fully offset by a valuation allowance. The Company operates in various tax jurisdictions which are subject to audit by various tax authorities. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% cumulative likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in the income tax provision in the consolidated statements of operations. Net Loss Per Share Attributable to Common Stockholders The Company presents net loss per share attributable to common stockholders in conformity with the two-class method required for multiple classes of common stock and participating securities. Under the two-class method, net loss is attributed to common stockholders and participating securities based on their participation rights. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share proportionately in the Company’s net losses. The Company considers its redeemable convertible preferred stock (prior to the Reverse Recapitalization), early exercised stock options, and unvested restricted stock to be participating securities and contractually entitles the holders of such shares to participate in dividends but does not contractually obligate the holders of such shares to participate in the Company’s losses. As such, net losses for the periods presented were not allocated to these securities. The Company computes basic net loss per share attributable to common stockholders by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because all potentially dilutive securities are anti-dilutive. Stock-Based Compensation Stock-based compensation expense for stock-based awards granted to employees and non-employees is measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations on a straight-line basis over the period during which services are provided in exchange for the award, generally, the vesting period of the award. The grant date fair value of stock options granted is estimated using the Black-Scholes option pricing model. Forfeitures are accounted for as they occur. Segments The Company has one reportable and operating segment. The Company’s chief operating decision maker is its Chief Executive Officer (“CEO”), who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. See Note 14 - Geographical Information for more details on the Company’s revenue and long-lived assets by jurisdiction. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 changes the disclosure requirements for fair value measurement. The Company adopted this standard as of January 1, 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses ( Topic 326 ): Measurement of Credit Losses on Financial Instruments , and has since issued various amendments including ASU 2018-19, ASU 2019-04, and ASU 2019-05. The guidance and related amendments modify the accounting for credit losses for most financial assets and require the use of an expected loss model, replacing the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The new guidance will be effective for the Company beginning January 1, 2023, though early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Topic 740 – Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principals in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Reverse Recapitalization
Reverse Recapitalization | 12 Months Ended |
Dec. 31, 2021 | |
Reverse Recapitalization [Abstract] | |
Reverse Recapitalization | Reverse Recapitalization Pursuant to the Merger Agreement, as described in Note 1, Merger Sub merged with and into Legacy Nextdoor, with Legacy Nextdoor surviving the Merger. Legacy Nextdoor became a wholly owned subsidiary of KVSB and KVSB was immediately renamed Nextdoor Holdings, Inc. Upon the consummation of the Merger, the following events contemplated by the Merger Agreement occurred, based on Legacy Nextdoor’s capitalization as of November 5, 2021: • all 61,331,815 issued and outstanding shares of Legacy Nextdoor redeemable convertible preferred stock were converted into 61,331,815 shares of Legacy Nextdoor common stock at the conversion rate as calculated pursuant to Legacy Nextdoor’s certificate of incorporation; • all 97,886,321 issued and outstanding shares of Legacy Nextdoor common stock (including Legacy Nextdoor common stock resulting from the conversion of the Legacy Nextdoor redeemable convertible preferred stock) were converted into 304,003,976 shares of Nextdoor Class B common stock after giving effect to the exchange ratio of 3.1057 as calculated in accordance with the Merger Agreement (“Exchange Ratio”); • all 19,196,313 granted and outstanding unexercised Legacy Nextdoor options were converted into 59,616,898 Nextdoor options exercisable for shares of Nextdoor Class B common stock with the same terms and vesting conditions except for the number of shares exercisable and the exercise price, each of which was adjusted by the Exchange Ratio; • all 866,687 granted and outstanding unvested Legacy Nextdoor restricted stock units (“RSUs”) were converted into 2,691,577 Nextdoor RSUs for shares of Nextdoor Class B common stock with the same terms and vesting conditions except for the number of shares, which was adjusted by the Exchange Ratio; and • the entitlement to receive 58,135 shares of Legacy Nextdoor common stock pursuant to the Pixel Labs Merger Agreement converted into the right to receive 180,549 shares of Nextdoor Class B common stock, which was adjusted by the Exchange Ratio. There were 304,003,976 shares of Nextdoor Class B common stock issued and outstanding as of the Closing and Nextdoor options and RSUs covering 62,308,475 shares reserved for the potential future issuance of Nextdoor Class B common stock as of the Closing. In connection with the Closing of the Merger: • all KVSB Class B founder shares, consisting of 5,000,000 shares of KVSB Class B common stock, automatically converted into an aggregate of 7,347,249 shares of Nextdoor Class A common stock; • all KVSB Class K founder shares, consisting of 5,000,000 shares of KVSB Class K common stock, converted into an aggregate of 3,061,354 shares of Nextdoor Class A common stock; • all 1,132,688 private placement sponsor shares of KVSB Class A common stock converted into shares of Nextdoor Class A common stock on a one-to-one basis; and • 40,412,372 shares of KVSB Class A common stock held by KVSB public stockholders, net of the redemption of 1,222,040 shares of KVSB Class A common stock, converted into Nextdoor Class A common stock on a one-to-one basis. On July 6, 2021, concurrently with the execution of the Merger Agreement, KVSB entered into subscription agreements with certain investors (collectively, the “PIPE Investors”), pursuant to, and on the terms and subject to the conditions of which, the PIPE Investors subscribed for an aggregate of 27,000,000 shares of Class A common stock, which included 750,000 shares of Nextdoor Class A common stock to the KVSB sponsor and 4,500,000 shares of Nextdoor Class A common stock to certain Legacy Nextdoor stockholders, including 500,000 shares of Nextdoor Class A common stock to Nextdoor's Chief Executive Officer and President, for an aggregate purchase price of $270.0 million (the “PIPE Investment”). The PIPE Investment was consummated substantially concurrently with the Closing of the Merger. There were 78,953,663 shares of Nextdoor Class A common stock issued and outstanding as of the Closing. Each holder of shares of Class A common stock is entitled to one vote for each share of Class A common stock held on all matters submitted to a vote of stockholders and each holder of shares of Class B common stock is entitled to 10 votes for each share of Class B common stock held on all matters submitted to a vote of stockholders. The following table presents the number of shares of common stock issued and outstanding immediately following the Reverse Recapitalization: Shares KVSB Class A common stock, outstanding prior to Reverse Recapitalization 42,767,100 Less: redemption of KVSB Class A common stock (1,222,040) Conversion of KVSB Class B founder shares 7,347,249 Conversion of KVSB Class K common stock 3,061,354 Shares issued to PIPE Investors 27,000,000 Nextdoor Class A common stock 78,953,663 Conversion of Legacy Nextdoor common stock (1) 113,526,555 Conversion of Legacy Nextdoor redeemable convertible preferred stock (2) 190,477,421 Nextdoor Class B common stock 304,003,976 Total shares of common stock immediately after Reverse Recapitalization 382,957,639 _________________ (1) Upon the completion of the Reverse Recapitalization, the 36,554,506 outstanding shares of Legacy Nextdoor common stock were converted into shares of Nextdoor Class B common stock using the Exchange Ratio. (2) Upon the completion of the Reverse Recapitalization, all 61,331,815 outstanding shares of Legacy Nextdoor redeemable convertible preferred stock converted into Legacy Nextdoor common stock on a one-to-one basis, which were then converted into shares of Nextdoor Class B common stock using the Exchange Ratio. KVSB was treated as the “acquired” company for financial reporting purposes. Accordingly, the financial statements of Nextdoor represent the continuation of the financial statements of Legacy Nextdoor, with the Merger reflected as the equivalent of Nextdoor issuing common stock for the net assets of KVSB, accompanied by a recapitalization. The net assets of KVSB were recognized as of the Closing at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger are those of Legacy Nextdoor and Legacy Nextdoor’s operations are the only ongoing operations of Nextdoor. In connection with the Reverse Recapitalization, the Company raised $628.5 million of proceeds, presented as cash flows from financing activities, which included the contribution of $416.4 million of funds held in KVSB’s trust account, $0.2 million of cash held in KVSB’s operating cash account, and $270.0 million of proceeds from the PIPE Investment, net of $12.2 million paid to redeem 1,222,040 public shares of KVSB’s Class A common stock and $45.9 million in transaction costs incurred by KVSB. Legacy Nextdoor incurred $5.7 million of transaction costs, which consisted of direct incremental legal, accounting, consulting, and other fees which were recorded as deferred transaction costs and upon completion of the Reverse Recapitalization were reclassified to additional paid-in capital as a reduction of the net proceeds received. The following table reconciles the elements of the Reverse Recapitalization to the consolidated statements of cash flows and the consolidated statements of redeemable convertible preferred stock and stockholders' equity (deficit) (in thousands): Year Ended December 31, 2021 Funds held in KVSB's trust account $ 416,359 Funds held in KVSB's operating cash account 194 Proceeds from the PIPE Investment 270,000 Less: amount paid to redeem public shares of KVSB's Class A common stock (12,221) Less: transaction costs incurred by KVSB (45,843) Proceeds from the Reverse Recapitalization 628,489 Less: non-cash liabilities assumed from KVSB (203) Less: unpaid deferred transaction costs (314) Less: payment of transaction costs related to the Reverse Recapitalization (5,384) Net cash from issuance of common stock upon the Reverse Recapitalization, net of issuance costs $ 622,588 The shares and corresponding capital amounts and all per share data related to Legacy Nextdoor’s outstanding redeemable convertible preferred stock, common stock, and stock-based awards prior to the Reverse Recapitalization have been retroactively adjusted using the Exchange Ratio. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Pixel Labs, Inc. Business Combination On August 22, 2019 the Company executed a merger agreement to acquire the assets and liabilities of Pixel Labs, Inc. (“Pixel Labs”). The acquisition closed on August 27, 2019. The purchase accounting was completed in 2019 and no measurement period adjustments were recorded. The aggregate purchase consideration of $7.6 million included a time-based cash and share holdback of $0.7 million and $0.2 million, respectively, to be paid at a future date. In November 2020 final settlement of the holdback was completed. At closing, certain Pixel Labs stockholders had not completed administrative forms that were required for the Company’s common stock to be legally issued. During the years ended December 31, 2021 and 2020 an additional 20,885 and 29,665 shares, respectively, were issued as a result of the administrative forms being completed. In April 2020 the founder of Pixel Labs departed, and therefore the unvested shares granted to the founder at the time of acquisition, which were accounted for as post combination compensation cost, were cancelled as they were contingent upon continued employment. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The amortized costs, unrealized gains and losses, and estimated fair values of the Company’s cash equivalents and marketable securities were as follows (in thousands): As of December 31, 2021 Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 474,294 $ — $ — $ 474,294 Marketable securities: Commercial paper 83,728 — — 83,728 Corporate securities 78,353 24 (14) 78,363 U.S. Treasury securities 15,200 — (12) 15,188 Asset-backed securities 16,735 — (15) 16,720 Total marketable securities 194,016 24 (41) 193,999 Total $ 668,310 $ 24 $ (41) $ 668,293 As of December 31, 2020 Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 28,371 $ — $ — $ 28,371 Marketable securities: Commercial paper 27,473 — — 27,473 Corporate securities 6,940 — (2) 6,938 U.S. Treasury securities 16,157 1 — 16,158 Asset-backed securities 2,772 — — 2,772 Total marketable securities 53,342 1 (2) 53,341 Total $ 81,713 $ 1 $ (2) $ 81,712 All marketable securities are designated as available-for-sale securities as of December 31, 2021 and 2020. The following tables present the contractual maturities of the Company’s marketable securities (in thousands): As of December 31, 2021 Amortized Cost Estimated Fair Value Due within one year $ 137,077 $ 137,043 Due after one to four years 56,939 56,956 Total $ 194,016 $ 193,999 As of December 31, 2020 Amortized Cost Estimated Fair Value Due within one year $ 53,342 $ 53,341 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe Company’s financial assets and liabilities measured at fair value on a recurring basis are classified by level within the fair value hierarchy. There were no financial assets or liabilities measured using Level 3 inputs as of December 31, 2021 and 2020. The following table presents information about the Company’s financial assets that are measured at fair value on a recurring basis (in thousands): Fair Value Measurement as of December 31, 2021 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 474,294 $ — $ 474,294 Marketable securities: Commercial paper — 83,728 83,728 Corporate securities — 78,363 78,363 U.S. Treasury securities — 15,188 15,188 Asset-backed securities — 16,720 16,720 Total marketable securities — 193,999 193,999 Total cash equivalents and marketable securities $ 474,294 $ 193,999 $ 668,293 Fair Value Measurement as of December 31, 2020 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 28,371 $ — $ 28,371 Marketable securities: Commercial paper — 27,473 27,473 Corporate securities — 6,938 6,938 U.S. Treasury securities — 16,158 16,158 Asset-backed securities — 2,772 2,772 Total marketable securities — 53,341 53,341 Total cash equivalents and marketable securities $ 28,371 $ 53,341 $ 81,712 The Company classifies its cash equivalents, marketable securities, and restricted cash within Level 1 or Level 2 because it determines their fair values using quoted market prices or alternative pricing sources and models utilizing market observable inputs. There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2021 and 2020. Assets and Liabilities Measured at Fair Value on a Recurring Basis |
Other Balance Sheet Components
Other Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Components | Other Balance Sheet Components Property and Equipment, net Property and equipment, net consisted of the following (in thousands): As of December 31, 2021 2020 Computer equipment and software $ 3,123 $ 2,002 Furniture and fixtures 2,201 1,174 Capitalized internal-use software 1,842 1,842 Leasehold improvements 9,502 2,850 Property and equipment, gross 16,668 7,868 Less: accumulated depreciation and amortization (4,123) (2,150) Property and equipment, net $ 12,545 $ 5,718 Depreciation and amortization expense was $2.0 million and $1.0 million, for the years ended December 31, 2021 and 2020, respectively. Intangible Assets, net The Company’s intangible assets consist of customer relationships and developed technology arising from acquisitions. Intangible assets, net consisted of the following (in thousands): As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life (years) Customer relationships $ 7,068 $ (4,684) $ 2,384 3.0 Developed technology 4,600 (2,149) 2,451 2.7 Total intangible assets, net $ 11,668 $ (6,833) $ 4,835 2.8 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life (years) Customer relationships $ 7,068 $ (3,451) $ 3,617 3.0 Developed technology 4,600 (1,230) 3,370 3.7 Total intangible assets, net $ 11,668 $ (4,681) $ 6,987 3.3 Amortization expense related to intangible assets was $2.2 million and $2.1 million for the years ended December 31, 2021 and 2020, respectively. Expected future amortization expense for intangible assets as of December 31, 2021 was as follows (in thousands): Years Ending December 31, Amount 2022 $ 1,773 2023 1,773 2024 1,054 2025 235 Thereafter — Total $ 4,835 Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of December 31, 2021 2020 Accrued compensation $ 3,375 $ 6,888 Liability for early exercise of unvested stock options 690 1,133 Taxes payable 879 516 Deferred revenue 3,388 2,585 Other accrued and current liabilities 7,112 3,876 Accrued expenses and other current liabilities $ 15,444 $ 14,998 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into various non-cancellable office facility leases in various locations with original lease periods expiring between 2020 and 2029, with its primary office location in San Francisco, California. The Company entered into a lease consisting of multiple floors for its new San Francisco headquarters in 2019, with a lease term through 2029. The first portion of the lease commenced in June 2020, and the second and final portion of the lease commenced in January 2021. The facility lease agreements generally provide for escalating rental payments. The Company's lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs were as follows (in thousands): Years Ended December 31, 2021 2020 Operating lease cost $ 9,864 $ 6,278 Short-term lease cost 525 495 Variable lease cost 409 452 Total $ 10,798 $ 7,225 Other information related to the Company’s operating leases was as follows (in thousands): Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,585 $ 5,624 ROU assets obtained in exchange for lease obligations: Operating leases $ 28,252 $ 39,664 Lease terms and discount rates for operating leases were as follows: As of December 31, 2021 2020 Weighted average remaining lease term (years) 7.3 8.2 Weighted average discount rate 4.5 % 5.3 % As of December 31, 2021, future minimum lease payments under operating leases were as follows (in thousands): Years Ending December 31, Amount 2022 $ 10,045 2023 10,347 2024 10,657 2025 10,977 2026 11,306 Thereafter 27,697 Total lease payments 81,029 Less: imputed interest (12,300) Present value of lease liabilities 68,729 Less: current operating lease liabilities (7,131) Long-term operating lease liabilities $ 61,598 The table above does not include lease payments that were not fixed at commencement or lease modification. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of December 31, 2021, the Company had non-cancellable purchase commitments with certain service providers primarily related to the provision of cloud computing services as follows (in thousands): Total Commitments Years Ending December 31, 2022 $ 18,978 2023 22,528 2024 10,417 Thereafter — Total $ 51,923 Legal matters From time to time, the Company is a party to a variety of claims, lawsuits, and proceedings which arise in the ordinary course of business, including claims of alleged infringement of intellectual property rights. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. The Company discloses potential losses when they are reasonably possible. In the Company’s opinion, resolution of pending matters is not likely to have a material adverse impact on its consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, the Company bases its estimate on the information available at the time of the assessment. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. There were no such material matters as of December 31, 2021 and 2020. Indemnification In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with its customers, partners, suppliers, and vendors. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred in connection with its service, breach of representations or covenants, intellectual property infringement, or other claims made against such parties. These provisions may limit the time within which an indemnification claim can be made. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. For the years ended December 31, 2021 and 2020 the Company did not incur material costs to defend lawsuits or settle claims related to these indemnifications. The Company believes the fair value of these liabilities is not material and accordingly has no liabilities recorded for these agreements as of December 31, 2021 and 2020. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) | Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) The shares and corresponding capital amounts and all per share data related to Legacy Nextdoor’s authorized and outstanding redeemable convertible preferred stock, common stock, and stock-based awards prior to the Reverse Recapitalization have been retroactively adjusted using the Exchange Ratio. Legacy Nextdoor Redeemable Convertible Preferred Stock Upon the completion of the Reverse Recapitalization on November 5, 2021, all outstanding shares of Legacy Nextdoor redeemable convertible preferred stock converted into Legacy Nextdoor common stock on a one-to-one basis, which were then converted into 190,477,421 shares of Nextdoor Class B common stock as a result of the Reverse Recapitalization, using the Exchange Ratio of 3.1057. Preferred Stock In connection with the Reverse Recapitalization, the Company's amended and restated certificate of incorporation became effective, which authorized the issuance of 50,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting, and other rights and preferences as may be determined from time to time by the Company's Board of Directors. As of December 31, 2021 there were no shares of preferred stock issued or outstanding. Common Stock The Company was authorized to issue 2,500,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock as of December 31, 2021 and 375,788,212 shares of common stock as of December 31, 2020. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting and conversion rights. The holder of each share of Class A common stock is entitled to one vote per share and the holder of each share of Class B common stock is entitled to ten votes per share. Shares of Class B common stock are convertible into an equivalent number of shares of Class A common stock at the option of the holder or upon certain events upon the terms and conditions described in the Company’s amended and restated certificate of incorporation. Class A common stock and Class B common stock are referred to, collectively, as common stock throughout the notes to these consolidated financial statements, unless otherwise indicated. Shares of common stock reserved for future issuance on an as-converted basis were as follows (in thousands): As of December 31, 2021 2020 Redeemable convertible preferred stock — 190,477 Stock options outstanding 58,278 46,973 Unvested restricted stock units (RSUs) 2,511 — Shares reserved for future award issuances 77,924 12,558 Total 138,713 250,008 Common Stock Subject to Repurchase Certain stock option grant agreements permit exercise prior to vesting. Upon termination of service of an employee, the Company has the right to repurchase any unvested, but issued, common stock at the original purchase price. The consideration received for an exercise of an option is accounted for as a deposit of the exercise price and is recorded as a liability. Upon vesting of the shares pursuant to the grant agreements, the shares and related liability are reclassified into stockholders’ equity (deficit). As of December 31, 2021 and 2020, the Company had $0.7 million and $1.1 million recorded in accrued expenses and other current liabilities related to 421,594 and 692,990 unvested shares of common stock subject to repurchase, respectively. Restricted Stock Subject to Repurchase In 2018, an executive of the Company purchased 15,408,183 shares of restricted stock, subject to time-based service requirements, which vest over a forty-eight month period. The shares issued upon the purchase of restricted stock are considered to be legally issued and outstanding on the date of purchase and the executive has full voting rights. Upon termination of service, the Company may repurchase unvested shares acquired at a price equal to the price per share paid upon the exercise. Upon vesting of the shares pursuant to the grant agreements, the shares and related liability are reclassified into stockholders’ equity (deficit). As of December 31, 2021, the Company had $4.8 million recorded in deposits related to 3,210,037 unvested shares of common stock subject to repurchase. As of December 31, 2020, the Company had $10.5 million recorded in deposits related to 7,062,082 unvested shares of common stock subject to repurchase. For the years ended December 31, 2021 and 2020, the Company recorded stock-based compensation expense of $4.6 million and $4.6 million, respectively, related to this restricted stock. Equity Incentive Plans 2008 and 2018 Equity Incentive Plans In 2018, the 2008 Equity Incentive Plan (“the 2008 Plan”) was terminated, and Legacy Nextdoor’s board of directors approved the adoption of the 2018 Equity Incentive Plan (“the 2018 Plan”), which included both incentive and non-statutory stock options. The 2008 Plan and 2018 Plan (collectively, the “Legacy Equity Incentive Plans”) provided for the grant of shares of common stock to employees, directors, officers, and consultants pursuant to awards of stock options, restricted stock, or RSUs. As of December 31, 2020, the Company had reserved 4,043,637 shares of its common stock under the Legacy Equity Incentive Plans for future issuance. Options were granted at a price per share equal to the fair market value of the underlying common stock at the date of grant. Options granted generally vest over four years. RSUs granted are typically subject to a four-year vesting period and vest quarterly. While no new awards will be granted under the Legacy Equity Incentive Plans, any outstanding awards made under the Legacy Equity Incentive Plans will remain outstanding in accordance with the terms of the applicable plan and the applicable award agreements. 2021 Equity Incentive Plan In November 2021, the Company’s Board of Directors and stockholders approved the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) as a successor to the Legacy Equity Incentive Plans, with the purpose of granting stock-based awards to employees, directors, officers, and consultants, including stock options, restricted stock awards, and RSUs. The Company initially reserved for issuance under the 2021 Plan (a) 46,008,885 shares of Class A common stock, plus (b) shares that are subject to issuance upon exercise of options granted under the 2018 Plan prior to the Closing but which, after the Closing, cease to be subject to the option for any reason other than exercise of the option, (c) shares that are subject to awards granted under the 2018 Plan prior to the Closing that, after the Closing, are forfeited or are repurchased by the Company at the original issue price, (d) shares that are subject to awards granted under the 2018 Plan prior to the Closing that, after the Closing, otherwise terminate without such shares being issued, and (e) shares that, after the Closing, are used to pay the exercise price of a stock option issued under the 2018 Plan prior to the Closing or are withheld to satisfy the tax withholding obligations related to any award issued under the 2018 Plan prior to the Closing. The number of shares available for grant and issuance under the 2021 Plan will increase automatically on January 1 of each of 2022 through 2031 by the number of shares equal to the lesser of (i) five percent (5%) of the number of shares (rounded down to the nearest whole share) of Class A common stock and Class B common stock issued and outstanding on each December 31 immediately prior to the date of increase, or (ii) such number of shares determined by the Company’s Board of Directors. 2021 Employee Stock Purchase Plan In November 2021, the Company’s Board of Directors and stockholders approved the Company’s 2021 Employee Stock Purchase Plan (the “2021 ESPP”). Over a series of offering periods, each of which may consist of one or more purchase periods, eligible employees will be offered the option to purchase shares of Class A common stock at 85% of the lesser of the fair market value of Class A common stock on (i) the first business day of the applicable offering period and (ii) the date of purchase. Under the 2021 ESPP, the Company initially reserved 8,901,159 shares of Class A common stock for issuance, and the aggregate number of shares reserved will increase automatically on January 1 of each of 2022 through 2031 by the number of shares equal to the lesser of (i) one percent (1%) of the total number of outstanding shares of Class A common stock and Class B common stock as of the immediately preceding December 31, or (ii) a number of shares as may be determined by the Company’s Board of Directors. The aggregate number of shares issued over the term of the 2021 ESPP, subject to adjustments for stock-splits, recapitalizations, or similar events, may not exceed 89,011,590 shares. As of December 31, 2021, there had been no offering period or purchase period under the 2021 ESPP. Stock Options and RSUs The Company may grant options to acquire shares of Class A common stock to employees, directors, officers, and consultants at a price not less than the fair market value of the shares at the date of grant. Options granted to a person who, at the time of the grant, owns more than 10% of the voting power of all classes of stock shall be at no less than 110% of the fair market value and expire five years from the date of grant. All other options generally have a contractual term of ten years. Options granted generally vest on a monthly basis over four years. RSUs granted for Class A common stock generally vest on a quarterly basis over four years. A summary of the Company’s stock option activity for the year ended December 31, 2021 and related information is as follows (in thousands, except per share data): Number of Options Weighted- Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balances at December 31, 2020 46,973 $ 1.80 7.8 $ 28,467 Options granted 25,262 $ 3.05 Options exercised (10,325) $ 1.48 Options forfeited or expired (3,632) $ 2.50 Balances at December 31, 2021 58,278 $ 2.35 8.1 $ 322,799 Options vested and exercisable at December 31, 2021 23,443 $ 1.72 6.6 $ 144,608 The intrinsic value is calculated as the difference between the exercise price of the underlying common stock option award and the fair value of the Company’s common stock as of the respective balance sheet date. The weighted average grant date fair value of options granted was $3.63 per share and $2.40 per share during the years ended December 31, 2021 and 2020, respectively. The total number of shares vested during the years ended December 31, 2021 and 2020 was 18,455,667 and 13,012,287, respectively. The weighted average grant-date fair value of options vested was $2.23 per share and $1.64 per share during the years ended December 31, 2021 and 2020, respectively. The intrinsic value of the options exercised was $31.9 million and $9.8 million for the years ended December 31, 2021 and 2020, respectively. The Company granted 19,639 options to non-employees during the year ended December 31, 2021. The Company did not issue any grants to non-employees during the year ended December 31, 2020. The table above includes 2,308,097 options granted to the Company’s Chief Executive Officer in March 2021 which were subject to a performance-based vesting condition that would be satisfied in full upon the first to occur of: (i) a Qualified IPO, (ii) a direct listing, or (iii) the closing by the Company of a transaction with a publicly traded special purpose acquisition company (“SPAC”) in which the common stock is publicly listed on a securities exchange. The options would vest in a single installment upon the satisfaction of the performance-based vesting condition subject to the Chief Executive Officer’s continuous employment through such date. Upon the Closing, the performance-based vesting condition was satisfied and the Company recognized stock-based compensation expense of $8.5 million and had no unrecognized stock-based compensation expense related to these options as of December 31, 2021. A summary of the Company’s RSU activity for the year ended December 31, 2021 and related information is as follows (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2020 — $ — RSUs granted 2,701 $ 8.74 RSUs vested (166) $ 8.91 RSUs forfeited (24) $ 7.68 Unvested at December 31, 2021 2,511 $ 8.74 Valuation Assumptions The Company’s use of the Black-Scholes option-pricing model to estimate the fair value of stock options granted requires the input of highly subjective assumptions. These assumptions were estimated as follows: Fair value of the underlying common stock – Prior to the Reverse Recapitalization, the Board of Directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock including, but not limited to: (i) the results of contemporaneous third-party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering, merger, or acquisition of the Company, given prevailing market conditions; (vii) transactions involving the Company’s shares; (viii) the history and nature of its business, industry trends and competitive environment; and (iv) general economic outlook. After the Reverse Recapitalization, the fair value of the underlying common stock is determined by the closing price, on the date of grant, of the Company’s Class A common stock, which is traded on the New York Stock Exchange. Expected volatility – Expected volatility is a measure of the amount by which the stock price is expected to fluctuate. Since the Company does not have sufficient trading history of its common stock, it estimates the expected volatility of its stock options at their grant date by taking the weighted average historical volatility of a group of comparable publicly traded companies over a period equal to the expected term of the options. Expected term – The Company determines the expected term based on the average period the stock options are expected to remain outstanding using the simplified method, calculated as the midpoint of the stock options’ vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Risk-free rate – The Company uses the U.S. Treasury yield for its risk-free interest rate that corresponds with the expected term. Expected dividend yield – The Company utilizes a dividend yield of zero, as it does not currently issue dividends and does not expect to in the future. The following assumptions were used to calculate the fair value of employee and non-employee stock option grants made during the following periods: Years Ended December 31, 2021 2020 Expected volatility 53.7% - 54.5% 48.8% -53.4% Expected term (years) 6.3 6.0 Risk-free interest rate 1.1% 0.6% Expected dividend yield — — Fair value of common stock per share $4.92 - $6.83 $3.89 - $4.23 Stock-Based Compensation The Company recorded stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Years Ended December 31, 2021 2020 Cost of revenue $ 1,466 $ 905 Research and development 20,690 10,235 Sales and marketing 6,388 3,403 General and administrative 18,970 8,065 Total $ 47,514 $ 22,608 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders As a result of the Reverse Recapitalization, the Company has retroactively adjusted the weighted average number of shares of common stock outstanding prior to the Closing by multiplying them by the Exchange Ratio of 3.1057 used to determine the number of shares of common stock into which they converted. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Years Ended December 31, 2021 2020 Class A Class B Common Net loss attributable to common stockholders $ (8,032) $ (87,293) $ (75,234) Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 12,330 134,007 90,190 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.65) $ (0.65) $ (0.83) The following potentially dilutive securities outstanding have been excluded from the computations of diluted net loss per share because such securities have an anti-dilutive impact due to losses reported (in thousands): As of December 31, 2021 2020 Redeemable convertible preferred stock — 190,477 Outstanding stock options 58,278 46,973 Unvested RSUs 2,511 — Unvested early exercised stock options subject to repurchase 422 693 Unvested restricted stock 3,210 7,062 Contingently issuable shares 181 204 Total 64,602 245,409 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has a 401(k) plan (“the Plan”) covering all eligible employees in the United States. The Company is allowed to make discretionary profit sharing and qualified non-elective contributions as defined by the Plan and as approved by the Board of Directors. Through December 31, 2020, the Company did not match eligible participants’ 401(k) contributions. As of January 1, 2021, the Company began matching a portion of eligible participants’ 401(k) contributions. The Company’s match totaled $1.1 million for the year ended December 31, 2021. No discretionary profit-sharing contributions have been made to date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes during the years ended December 31, 2021 and 2020 were as follows (in thousands): Years Ended December 31, 2021 2020 Domestic $ (94,693) $ (74,882) Foreign (475) (225) Loss before income taxes $ (95,168) $ (75,107) The provision for income taxes was as follows (in thousands): Years Ended December 31, 2021 2020 Current: Federal $ — $ — State 146 11 Foreign 11 116 Total current provision for income taxes 157 127 Deferred: Federal — — State — — Foreign — — Total deferred provision for income taxes — — Total provision for income taxes $ 157 $ 127 Income tax expense (benefit) differed from the amount computed by applying the federal statutory income tax rate of 21% to pretax loss as a result of the following: Years Ended December 31, 2021 2020 Statutory rate (21.0) % (21.0) % State tax 0.2 (2.5) Permanent items 0.7 0.4 Transaction costs (4.8) — Stock-based compensation 6.6 4.3 R&D credit (4.2) (4.2) Other — 0.1 Changes in valuation allowance 22.8 22.9 Foreign rate differential (0.1) 0.2 Effective tax rate 0.2 % 0.2 % The tax effects of significant items comprising the Company’s deferred taxes were as follows (in thousands): As of December 31, 2021 2020 Deferred tax assets: Net operating loss $ 96,423 $ 82,031 Credit carryforwards 14,162 10,143 Stock-based compensation 5,924 3,149 Lease liability 16,691 9,288 Reserves, accruals and other 1,774 1,152 Other 331 — Total deferred tax assets 135,305 105,763 Valuation allowance (120,873) (96,044) Total deferred tax assets, net 14,432 9,719 Deferred tax liabilities: Fixed asset basis and other — (858) ROU asset basis (14,432) (8,861) Total deferred tax liabilities (14,432) (9,719) Net deferred tax assets $ — $ — Based upon available objective evidence, management believes it is more likely than not that the U.S. net deferred tax assets will not be fully realizable. Accordingly, the Company has established a full valuation allowance for its U.S. net deferred tax assets. The valuation allowance increased by $24.8 million and $8.7 million, respectively, during 2021 and 2020. The Company had aggregate deferred tax assets of $135.3 million and $105.8 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company had federal net operating loss carryforwards of $390.0 million, which begin to expire i n 2028, and state net operating loss carryforwards of $226.0 million, which begin to expire in 2028. Of the $390.0 million U.S. federal net operating losses $214.1 million is carried forward indefinitely but is limited to 80% of current year taxable income. As of December 31, 2021, the Company had federal tax credits of $16.6 million, which begin to expire in 2028, a nd state tax credits of $14.2 million, which do not expire. The Internal Revenue Code (“IRC”) limits the amount of net operating loss carryforwards that a company may use in a given year in the event of certain cumulative changes in ownership over a three-year period as described in Section 382 of the IRC. Utilization of net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the IRC, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. The Company accounts for uncertainty in income taxes in accordance with ASC 740 Income Taxes . Tax positions are evaluated in a two-step process, whereby the Company first determines whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. A reconciliation of the beginning and ending balances of unrecognized tax benefit were as follows (in thousands): Years Ended December 31, 2021 2020 Gross unrecognized tax benefits - beginning of year $ 10,143 $ 6,971 Increases related to current year tax positions 3,759 3,129 Increases related to prior year tax positions — 43 Gross unrecognized tax benefits - end of year $ 13,902 $ 10,143 All of the unrecognized tax benefits as of December 31, 2021 are accounted for as a reduction in the Company’s deferred tax assets. Due to the Company’s valuation allowance, none of the $13.9 million of unrecognized tax benefits, related solely to its federal and state research and development income tax credits, would affect the Company’s effective tax rate, if recognized. The Company does not believe it is reasonably possible that its unrecognized tax benefits will significantly change in the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. There were no interest or penalties accrued related to unrecognized tax benefits for the years ended December 31, 2021 and 2020, and no liability for accrued interest or penalties related to unrecognized tax benefits as of December 31, 2021 and 2020. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Geographical Information | Geographical Information Revenue disaggregated by geography based on the customers’ location was as follows (in thousands): Years Ended December 31, 2021 2020 United States $ 183,724 $ 119,118 International 8,473 4,166 Total $ 192,197 $ 123,284 Substantially all of the Company’s long-lived assets are located in the United States. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on December 31. The Merger was accounted for as a reverse recapitalization in accordance with GAAP. This determination was primarily based on the evaluation of the following facts and circumstances: • Legacy Nextdoor stockholders had a relative majority of the voting power of Nextdoor; • The Board of Directors of Nextdoor had ten members, and Legacy Nextdoor stockholders had the ability to nominate a majority of the members of the Board of Directors; • Legacy Nextdoor’s senior management comprised the senior management roles of Nextdoor and were responsible for the day-to-day operations; • Nextdoor assumed the Nextdoor Holdings, Inc. name and Legacy Nextdoor’s corporate headquarters; and • The intended strategy and operations of Nextdoor continued Legacy Nextdoor’s strategy and operations to leverage technology to connect millions of neighbors online and in real life to build stronger, more vibrant, and resilient neighborhoods. Under this method of accounting, KVSB was treated as the “acquired” company for financial reporting purposes. Accordingly, the financial statements of Nextdoor represent the continuation of the financial statements of Legacy Nextdoor, with the Merger reflected as the equivalent of Nextdoor issuing common stock for the net assets of KVSB, accompanied by a recapitalization. The shares and corresponding capital amounts and all per share data related to Legacy Nextdoor’s outstanding redeemable convertible preferred stock, common stock, and stock-based awards prior to the Reverse Recapitalization have been retroactively adjusted using the Exchange Ratio (as defined in Note 3). The conversion of the outstanding shares of Legacy Nextdoor redeemable convertible preferred stock into shares of Class B common stock in connection with the Reverse Recapitalization and the issuance of Class A common stock are presented as of the Closing of the Merger in the consolidated statements of redeemable convertible preferred stock and stockholders’ equity (deficit). The net assets of KVSB were recognized as of the |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates include, but are not limited to, valuation of financial instruments, valuation of common stock through the date of the Reverse Recapitalization, valuation of stock-based awards, revenue recognition, collectability of accounts receivable, valuation of acquired intangible assets and goodwill, useful lives of intangible assets, useful lives of property and equipment, the incremental borrowing rate applied in lease accounting, income taxes and deferred income tax assets and associated valuation allowances. The Company bases these estimates and assumptions on historical experience and various other assumptions that it considers reasonable. The actual results could differ materially from these estimates. |
Foreign Currency | Foreign Currency The functional currency of the Company’s international subsidiaries is generally their local currency. The financial statements of these subsidiaries are translated into U.S. dollars using month-end exchange rates for assets and liabilities, historical exchange rates for equity, and average exchange rates for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Unrealized foreign exchange gains and losses due to the re-measurement of monetary assets and liabilities denominated in non-functional currencies and realized foreign exchange gains and losses on foreign exchange transactions are recorded in other income (expense), net in the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of highly liquid investments with insignificant interest rate risk and original maturities of three months or less at the time of purchase. Cash and cash equivalents include demand deposits and money market accounts. Interest is accrued as earned. Cash and cash equivalents are recorded at cost, which approximates fair value. |
Marketable Securities | Marketable Securities The Company’s marketable securities are comprised of commercial paper, corporate securities, U.S. Treasury securities, and asset-backed securities. The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its investments, including securities with stated maturities beyond 12 months, within current assets on the consolidated balance sheets. |
Fair Value Measurements | Fair Value Measurements The Company accounts for certain assets and liabilities at fair value, which is the expected exchange price that would be received for an asset or an exit price paid to transfer a liability in an orderly transaction between market participants on the measurement date. Assets and liabilities measured at fair value are classified into the following categories based on the degree to which the inputs the Company uses to measure the fair values are observable in active markets. The Company uses the most observable inputs available when measuring fair value. • Level 1: Observable inputs such as unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or inputs that are derived principally from or corroborated by observable market data or other means; and • Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company records accounts receivable at the original invoiced amount. The Company maintains an allowance for doubtful accounts for any receivables it may be unable to collect and reduces the allowance when it determines that it will be unable to collect specific receivables. The Company determines the allowance based on its receivables’ age, the customers’ credit quality, and current economic conditions, among other factors that may affect the customers’ ability to pay. |
Restricted Cash | Restricted Cash The Company’s restricted cash balance is primarily invested in a savings account and pledged as collateral for standby letters of credit as security deposits for the Company’s office leases. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Life Computer equipment and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of 5 years or the lease term Maintenance and repair costs are expensed as incurred. |
Capitalized Internal-use Software | Capitalized Internal-use SoftwareThe Company capitalizes internal-use software costs when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed, and the software will be used as intended. Costs related to preliminary project activities and post-implementation activities are expensed as incurred and costs related to the application development stage are capitalized. Capitalized costs are recorded as part of property and equipment, net. The capitalized costs related to internal-use software are amortized on a straight-line basis over an estimated useful life of two |
Business Combinations | Business CombinationsThe Company includes the results of operations of the businesses that it acquires from the date of acquisition. The Company accounts for its acquisitions using the acquisition method of accounting. The Company allocates the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain identifiable assets include, but are not limited to, expected long-term market growth, future expected operating expenses, appropriate discount rates, and useful lives. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Acquisition costs, such as legal and consulting fees, are expensed as incurred. During the measurement period, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, which is not to exceed one year from the acquisition date, any subsequent adjustments are recorded in the consolidated statements of operations. |
Goodwill and Other Acquired Intangible Assets | Goodwill and Other Acquired Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the acquisition method of accounting. Goodwill is not amortized, but is tested for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances indicate that goodwill might be impaired. For all periods presented the Company had one reporting unit. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If the Company determines, based on the qualitative factors, that the fair value of the reporting unit is more likely than not to be less than the carrying amount, then a quantitative goodwill impairment test is required. There was no impairment of goodwill recorded for the years ended December 31, 2021 and 2020. Intangible assets consist of identifiable intangible assets, including customer relationships and developed technology, resulting from the Company’s acquisitions. Acquired intangible assets are recorded at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization costs are recorded in sales and marketing in the consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsProperty and equipment and other long-lived assets, such as finite-lived intangible assets, subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If impairment is indicated, an impairment loss is recognized as the amount by which the carrying amount exceeds the fair value. |
Leases | Leases Results and disclosure requirements for all periods presented are presented under ASU 2016-02, Leases (“Topic 842”). The Company has various lease agreements related to real estate that are all classified as operating leases. At the inception of the Company’s contracts it determines if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company has elected not to separate the lease and non-lease components within the contract. For leases that have greater than a 12-month lease term, right-of-use (“ROU”) assets and operating lease liabilities are recognized on the consolidated balance sheets at commencement date based on the present value of remaining fixed lease payments. Certain of the Company’s leases include options to extend the lease, with renewal terms that can extend the lease term from one month to five years. If the Company is reasonably certain to exercise an option to extend a lease, the extension period is included as part of the ROU asset and the operating lease liability. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at lease commencement in order to discount lease payments to present value for purposes of performing lease classification tests and measuring the lease liability. The Company’s incremental borrowing rate represents the rate of interest the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the lease payments in a similar economic environment. The operating lease ROU asset also includes accrued lease expense resulting from the straight-line accounting under prior accounting methods, which is now being amortized over the remaining life of the lease. The Company’s lease payments are largely fixed. Variable lease payments exist in circumstances such as payments for property tax, insurance, and common area maintenance. Variable lease payments are recognized in operating expense in the period in which the obligation for those payments are incurred. Certain of the Company’s leases include an option to early terminate the lease. The Company’s leases may contain early termination options which may result in an early termination fee. The Company early terminated one of its leases in October 2020 and incurred an early termination fee of $0.1 million. The Company has a significant lease for its new headquarters in San Francisco, California, which does not include an option to early terminate. The first portion of the lease commenced in June 2020 and the second, and final portion of the lease, commenced in January 2021. For the Company’s leases, it has elected to not apply the recognition requirements to leases of twelve months or less. These leases are expensed on a straight-line basis and no operating lease liability will be recorded. |
Concentration of Credit and Customer Risk | Concentration of Credit and Customer Risks Financial instruments that are exposed to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. The Company maintains cash and cash equivalents and marketable securities with domestic and foreign financial institutions and at times may exceed federally insured limits. The Company performs periodic evaluations of the relative credit standing of these institutions. The Company maintains investments in U.S. government debt and agency securities, corporate debt securities, and commercial paper that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances. |
Revenue Recognition, Deferred Revenue, Practical Expedients and Exemptions, and Cost of Revenue | Revenue Recognition The Company generates a majority of its revenue from the delivery of advertising services. The Company determines revenue recognition through the following steps: (1) Identification of the contract, or contracts, with a customer (2) Identification of the performance obligations in the contract (3) Determination of the transaction price (4) Allocation of the transaction price to the performance obligations in the contract (5) Recognition of revenue when, or as, the Company satisfies a performance obligation The Company recognizes advertising revenue after satisfying its contractual performance obligation, which, for the majority of its advertising arrangements, is when an advertising impression is displayed to users. None of the Company’s arrangements contain minimum impression guarantees. The Company typically bills advertisers on a monthly basis and the payment terms vary by customer type and location. The Company has other advertising arrangements for the sale of neighborhood sponsorship and local deals which are typically fixed-fee arrangements and revenue is recognized on a straight-line basis over the non-cancellable contractual term of the agreement, generally beginning on the date its service is made available to the customer. Deferred Revenue In certain advertising arrangements the Company requires payment upfront from its customers. The Company records deferred revenue when it collects cash from customers in advance of revenue recognition. As of December 31, 2021 and 2020, deferred revenue was $3.4 million and $2.6 million, respectively, and included within accrued expenses and other current liabilities on the consolidated balance sheets. For the years ended December 31, 2021 and 2020, revenue recognized from deferred revenue at the beginning of each year was $2.5 million and $0.7 million, respectively. Practical Expedients and Exemptions The Company expenses sales commissions as incurred because the expected period of benefit is less than one year. These costs are recorded within sales and marketing expenses in the consolidated statements of operations. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery of the Company’s revenue generating activities, including third-party costs of hosting its platform and allocated personnel-related costs, including salaries, benefits and stock-based compensation for employees engaged in development of its revenue generating products. Cost of revenue also includes third-party costs associated with delivering and supporting its advertising products and credit card transaction fees related to processing customer transactions. |
Research and Development | Research and Development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits and stock-based compensation for its employees engaged in research and development, as well as costs for consultants, contractors and third-party software. In addition, allocated overhead costs, such as facilities, information technology, and depreciation are included in research and development expenses. |
Sales and Marketing, and General and Administrative | Sales and Marketing Sales and marketing expenses consist primarily of personnel-related costs and other costs which include salaries, commissions, benefits, and stock-based compensation for employees engaged in sales and marketing activities as well as other costs including third-party consulting, public relations, allocated overhead costs, and amortization of acquired intangible assets. Sales and marketing expenses also include brand and performance marketing for both user and small and mid-sized customer acquisition, and neighbor services, which includes personnel-related costs for the Company's neighbor support team, its outsourced neighbor support function, and verification costs. General and Administrative General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, and stock-based compensation, for certain executives, finance, legal, information technology, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services, including consulting, third-party legal and accounting services, and allocated overhead costs. |
Advertising Costs | Advertising CostsAdvertising costs which consist primarily of brand and performance marketing are expensed as incurred and are included in sales and marketing expense in the consolidated statements of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred income taxes are recognized for differences between financial reporting and tax bases of assets and liabilities at the enacted statutory tax rates in effect for the years in which the temporary differences are expected to reverse. Management makes an assessment of the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the U.S. net deferred tax assets have been fully offset by a valuation allowance. The Company operates in various tax jurisdictions which are subject to audit by various tax authorities. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% cumulative likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in the income tax provision in the consolidated statements of operations. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The Company presents net loss per share attributable to common stockholders in conformity with the two-class method required for multiple classes of common stock and participating securities. Under the two-class method, net loss is attributed to common stockholders and participating securities based on their participation rights. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share proportionately in the Company’s net losses. The Company considers its redeemable convertible preferred stock (prior to the Reverse Recapitalization), early exercised stock options, and unvested restricted stock to be participating securities and contractually entitles the holders of such shares to participate in dividends but does not contractually obligate the holders of such shares to participate in the Company’s losses. As such, net losses for the periods presented were not allocated to these securities. The Company computes basic net loss per share attributable to common stockholders by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, adjusted for outstanding shares that are subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because all potentially dilutive securities are anti-dilutive. |
Stock-Based Compensation | Stock-Based CompensationStock-based compensation expense for stock-based awards granted to employees and non-employees is measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations on a straight-line basis over the period during which services are provided in exchange for the award, generally, the vesting period of the award. The grant date fair value of stock options granted is estimated using the Black-Scholes option pricing model. Forfeitures are accounted for as they occur. |
Segments | SegmentsThe Company has one reportable and operating segment. The Company’s chief operating decision maker is its Chief Executive Officer (“CEO”), who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 changes the disclosure requirements for fair value measurement. The Company adopted this standard as of January 1, 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses ( Topic 326 ): Measurement of Credit Losses on Financial Instruments , and has since issued various amendments including ASU 2018-19, ASU 2019-04, and ASU 2019-05. The guidance and related amendments modify the accounting for credit losses for most financial assets and require the use of an expected loss model, replacing the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The new guidance will be effective for the Company beginning January 1, 2023, though early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Topic 740 – Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principals in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The ASU is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Net | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Life Computer equipment and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of 5 years or the lease term Property and equipment, net consisted of the following (in thousands): As of December 31, 2021 2020 Computer equipment and software $ 3,123 $ 2,002 Furniture and fixtures 2,201 1,174 Capitalized internal-use software 1,842 1,842 Leasehold improvements 9,502 2,850 Property and equipment, gross 16,668 7,868 Less: accumulated depreciation and amortization (4,123) (2,150) Property and equipment, net $ 12,545 $ 5,718 |
Reverse Recapitalization (Table
Reverse Recapitalization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reverse Recapitalization [Abstract] | |
Schedule of Reverse Recapitalization | The following table presents the number of shares of common stock issued and outstanding immediately following the Reverse Recapitalization: Shares KVSB Class A common stock, outstanding prior to Reverse Recapitalization 42,767,100 Less: redemption of KVSB Class A common stock (1,222,040) Conversion of KVSB Class B founder shares 7,347,249 Conversion of KVSB Class K common stock 3,061,354 Shares issued to PIPE Investors 27,000,000 Nextdoor Class A common stock 78,953,663 Conversion of Legacy Nextdoor common stock (1) 113,526,555 Conversion of Legacy Nextdoor redeemable convertible preferred stock (2) 190,477,421 Nextdoor Class B common stock 304,003,976 Total shares of common stock immediately after Reverse Recapitalization 382,957,639 _________________ (1) Upon the completion of the Reverse Recapitalization, the 36,554,506 outstanding shares of Legacy Nextdoor common stock were converted into shares of Nextdoor Class B common stock using the Exchange Ratio. (2) Upon the completion of the Reverse Recapitalization, all 61,331,815 outstanding shares of Legacy Nextdoor redeemable convertible preferred stock converted into Legacy Nextdoor common stock on a one-to-one basis, which were then converted into shares of Nextdoor Class B common stock using the Exchange Ratio. The following table reconciles the elements of the Reverse Recapitalization to the consolidated statements of cash flows and the consolidated statements of redeemable convertible preferred stock and stockholders' equity (deficit) (in thousands): Year Ended December 31, 2021 Funds held in KVSB's trust account $ 416,359 Funds held in KVSB's operating cash account 194 Proceeds from the PIPE Investment 270,000 Less: amount paid to redeem public shares of KVSB's Class A common stock (12,221) Less: transaction costs incurred by KVSB (45,843) Proceeds from the Reverse Recapitalization 628,489 Less: non-cash liabilities assumed from KVSB (203) Less: unpaid deferred transaction costs (314) Less: payment of transaction costs related to the Reverse Recapitalization (5,384) Net cash from issuance of common stock upon the Reverse Recapitalization, net of issuance costs $ 622,588 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cash and Cash Equivalents | The amortized costs, unrealized gains and losses, and estimated fair values of the Company’s cash equivalents and marketable securities were as follows (in thousands): As of December 31, 2021 Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 474,294 $ — $ — $ 474,294 Marketable securities: Commercial paper 83,728 — — 83,728 Corporate securities 78,353 24 (14) 78,363 U.S. Treasury securities 15,200 — (12) 15,188 Asset-backed securities 16,735 — (15) 16,720 Total marketable securities 194,016 24 (41) 193,999 Total $ 668,310 $ 24 $ (41) $ 668,293 As of December 31, 2020 Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 28,371 $ — $ — $ 28,371 Marketable securities: Commercial paper 27,473 — — 27,473 Corporate securities 6,940 — (2) 6,938 U.S. Treasury securities 16,157 1 — 16,158 Asset-backed securities 2,772 — — 2,772 Total marketable securities 53,342 1 (2) 53,341 Total $ 81,713 $ 1 $ (2) $ 81,712 |
Schedule of Marketable Securities | The amortized costs, unrealized gains and losses, and estimated fair values of the Company’s cash equivalents and marketable securities were as follows (in thousands): As of December 31, 2021 Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 474,294 $ — $ — $ 474,294 Marketable securities: Commercial paper 83,728 — — 83,728 Corporate securities 78,353 24 (14) 78,363 U.S. Treasury securities 15,200 — (12) 15,188 Asset-backed securities 16,735 — (15) 16,720 Total marketable securities 194,016 24 (41) 193,999 Total $ 668,310 $ 24 $ (41) $ 668,293 As of December 31, 2020 Amortized Unrealized Unrealized Estimated Cash equivalents: Money market funds $ 28,371 $ — $ — $ 28,371 Marketable securities: Commercial paper 27,473 — — 27,473 Corporate securities 6,940 — (2) 6,938 U.S. Treasury securities 16,157 1 — 16,158 Asset-backed securities 2,772 — — 2,772 Total marketable securities 53,342 1 (2) 53,341 Total $ 81,713 $ 1 $ (2) $ 81,712 |
Schedule of Investments Classified by Contractual Maturity Date | The following tables present the contractual maturities of the Company’s marketable securities (in thousands): As of December 31, 2021 Amortized Cost Estimated Fair Value Due within one year $ 137,077 $ 137,043 Due after one to four years 56,939 56,956 Total $ 194,016 $ 193,999 As of December 31, 2020 Amortized Cost Estimated Fair Value Due within one year $ 53,342 $ 53,341 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value on Recurring Basis | The following table presents information about the Company’s financial assets that are measured at fair value on a recurring basis (in thousands): Fair Value Measurement as of December 31, 2021 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 474,294 $ — $ 474,294 Marketable securities: Commercial paper — 83,728 83,728 Corporate securities — 78,363 78,363 U.S. Treasury securities — 15,188 15,188 Asset-backed securities — 16,720 16,720 Total marketable securities — 193,999 193,999 Total cash equivalents and marketable securities $ 474,294 $ 193,999 $ 668,293 Fair Value Measurement as of December 31, 2020 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 28,371 $ — $ 28,371 Marketable securities: Commercial paper — 27,473 27,473 Corporate securities — 6,938 6,938 U.S. Treasury securities — 16,158 16,158 Asset-backed securities — 2,772 2,772 Total marketable securities — 53,341 53,341 Total cash equivalents and marketable securities $ 28,371 $ 53,341 $ 81,712 |
Other Balance Sheet Components
Other Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment, Net | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets as follows: Estimated Useful Life Computer equipment and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of the estimated useful life of 5 years or the lease term Property and equipment, net consisted of the following (in thousands): As of December 31, 2021 2020 Computer equipment and software $ 3,123 $ 2,002 Furniture and fixtures 2,201 1,174 Capitalized internal-use software 1,842 1,842 Leasehold improvements 9,502 2,850 Property and equipment, gross 16,668 7,868 Less: accumulated depreciation and amortization (4,123) (2,150) Property and equipment, net $ 12,545 $ 5,718 |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life (years) Customer relationships $ 7,068 $ (4,684) $ 2,384 3.0 Developed technology 4,600 (2,149) 2,451 2.7 Total intangible assets, net $ 11,668 $ (6,833) $ 4,835 2.8 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life (years) Customer relationships $ 7,068 $ (3,451) $ 3,617 3.0 Developed technology 4,600 (1,230) 3,370 3.7 Total intangible assets, net $ 11,668 $ (4,681) $ 6,987 3.3 |
Schedule of Expected Future Amortization Expense for Intangible Assets | Expected future amortization expense for intangible assets as of December 31, 2021 was as follows (in thousands): Years Ending December 31, Amount 2022 $ 1,773 2023 1,773 2024 1,054 2025 235 Thereafter — Total $ 4,835 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): As of December 31, 2021 2020 Accrued compensation $ 3,375 $ 6,888 Liability for early exercise of unvested stock options 690 1,133 Taxes payable 879 516 Deferred revenue 3,388 2,585 Other accrued and current liabilities 7,112 3,876 Accrued expenses and other current liabilities $ 15,444 $ 14,998 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs, Other Information, and Lease Terms and Discount Rates | The components of lease costs were as follows (in thousands): Years Ended December 31, 2021 2020 Operating lease cost $ 9,864 $ 6,278 Short-term lease cost 525 495 Variable lease cost 409 452 Total $ 10,798 $ 7,225 Other information related to the Company’s operating leases was as follows (in thousands): Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,585 $ 5,624 ROU assets obtained in exchange for lease obligations: Operating leases $ 28,252 $ 39,664 Lease terms and discount rates for operating leases were as follows: As of December 31, 2021 2020 Weighted average remaining lease term (years) 7.3 8.2 Weighted average discount rate 4.5 % 5.3 % |
Schedule of Future Minimum Lease Payments under Operating Leases | As of December 31, 2021, future minimum lease payments under operating leases were as follows (in thousands): Years Ending December 31, Amount 2022 $ 10,045 2023 10,347 2024 10,657 2025 10,977 2026 11,306 Thereafter 27,697 Total lease payments 81,029 Less: imputed interest (12,300) Present value of lease liabilities 68,729 Less: current operating lease liabilities (7,131) Long-term operating lease liabilities $ 61,598 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Commitments | As of December 31, 2021, the Company had non-cancellable purchase commitments with certain service providers primarily related to the provision of cloud computing services as follows (in thousands): Total Commitments Years Ending December 31, 2022 $ 18,978 2023 22,528 2024 10,417 Thereafter — Total $ 51,923 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Shares of common stock reserved for future issuance on an as-converted basis were as follows (in thousands): As of December 31, 2021 2020 Redeemable convertible preferred stock — 190,477 Stock options outstanding 58,278 46,973 Unvested restricted stock units (RSUs) 2,511 — Shares reserved for future award issuances 77,924 12,558 Total 138,713 250,008 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for the year ended December 31, 2021 and related information is as follows (in thousands, except per share data): Number of Options Weighted- Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Balances at December 31, 2020 46,973 $ 1.80 7.8 $ 28,467 Options granted 25,262 $ 3.05 Options exercised (10,325) $ 1.48 Options forfeited or expired (3,632) $ 2.50 Balances at December 31, 2021 58,278 $ 2.35 8.1 $ 322,799 Options vested and exercisable at December 31, 2021 23,443 $ 1.72 6.6 $ 144,608 |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity for the year ended December 31, 2021 and related information is as follows (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2020 — $ — RSUs granted 2,701 $ 8.74 RSUs vested (166) $ 8.91 RSUs forfeited (24) $ 7.68 Unvested at December 31, 2021 2,511 $ 8.74 |
Schedule of Assumptions Used to Calculate Fair Value of Stock Option Grants | The following assumptions were used to calculate the fair value of employee and non-employee stock option grants made during the following periods: Years Ended December 31, 2021 2020 Expected volatility 53.7% - 54.5% 48.8% -53.4% Expected term (years) 6.3 6.0 Risk-free interest rate 1.1% 0.6% Expected dividend yield — — Fair value of common stock per share $4.92 - $6.83 $3.89 - $4.23 |
Schedule of Stock-based Compensation Expense | The Company recorded stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Years Ended December 31, 2021 2020 Cost of revenue $ 1,466 $ 905 Research and development 20,690 10,235 Sales and marketing 6,388 3,403 General and administrative 18,970 8,065 Total $ 47,514 $ 22,608 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data): Years Ended December 31, 2021 2020 Class A Class B Common Net loss attributable to common stockholders $ (8,032) $ (87,293) $ (75,234) Weighted average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted 12,330 134,007 90,190 Net loss per share attributable to Class A and Class B common stockholders, basic and diluted $ (0.65) $ (0.65) $ (0.83) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities outstanding have been excluded from the computations of diluted net loss per share because such securities have an anti-dilutive impact due to losses reported (in thousands): As of December 31, 2021 2020 Redeemable convertible preferred stock — 190,477 Outstanding stock options 58,278 46,973 Unvested RSUs 2,511 — Unvested early exercised stock options subject to repurchase 422 693 Unvested restricted stock 3,210 7,062 Contingently issuable shares 181 204 Total 64,602 245,409 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Income Taxes | Loss before income taxes during the years ended December 31, 2021 and 2020 were as follows (in thousands): Years Ended December 31, 2021 2020 Domestic $ (94,693) $ (74,882) Foreign (475) (225) Loss before income taxes $ (95,168) $ (75,107) |
Schedule of Provision for Income Taxes | The provision for income taxes was as follows (in thousands): Years Ended December 31, 2021 2020 Current: Federal $ — $ — State 146 11 Foreign 11 116 Total current provision for income taxes 157 127 Deferred: Federal — — State — — Foreign — — Total deferred provision for income taxes — — Total provision for income taxes $ 157 $ 127 |
Schedule of Effective Tax Rate | Income tax expense (benefit) differed from the amount computed by applying the federal statutory income tax rate of 21% to pretax loss as a result of the following: Years Ended December 31, 2021 2020 Statutory rate (21.0) % (21.0) % State tax 0.2 (2.5) Permanent items 0.7 0.4 Transaction costs (4.8) — Stock-based compensation 6.6 4.3 R&D credit (4.2) (4.2) Other — 0.1 Changes in valuation allowance 22.8 22.9 Foreign rate differential (0.1) 0.2 Effective tax rate 0.2 % 0.2 % |
Schedule of Deferred Taxes | The tax effects of significant items comprising the Company’s deferred taxes were as follows (in thousands): As of December 31, 2021 2020 Deferred tax assets: Net operating loss $ 96,423 $ 82,031 Credit carryforwards 14,162 10,143 Stock-based compensation 5,924 3,149 Lease liability 16,691 9,288 Reserves, accruals and other 1,774 1,152 Other 331 — Total deferred tax assets 135,305 105,763 Valuation allowance (120,873) (96,044) Total deferred tax assets, net 14,432 9,719 Deferred tax liabilities: Fixed asset basis and other — (858) ROU asset basis (14,432) (8,861) Total deferred tax liabilities (14,432) (9,719) Net deferred tax assets $ — $ — |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of unrecognized tax benefit were as follows (in thousands): Years Ended December 31, 2021 2020 Gross unrecognized tax benefits - beginning of year $ 10,143 $ 6,971 Increases related to current year tax positions 3,759 3,129 Increases related to prior year tax positions — 43 Gross unrecognized tax benefits - end of year $ 13,902 $ 10,143 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Geography | Revenue disaggregated by geography based on the customers’ location was as follows (in thousands): Years Ended December 31, 2021 2020 United States $ 183,724 $ 119,118 International 8,473 4,166 Total $ 192,197 $ 123,284 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2020USD ($) | Dec. 31, 2021USD ($)segmentreporting_unitmember | Dec. 31, 2020USD ($) | |
Concentration Risk [Line Items] | |||
Number of members of Board of Directors | member | 10 | ||
Restricted cash, current | $ 0 | $ 1,101,000 | |
Capitalized software costs | $ 0 | 200,000 | |
Number of reporting units | reporting_unit | 1 | ||
Goodwill impairment | $ 0 | 0 | |
Long-lived asset impairment | 0 | 0 | |
Termination fee | $ 100,000 | ||
Deferred revenue | 3,388,000 | 2,585,000 | |
Revenue recognized from contract with customer | 2,500,000 | 700,000 | |
Advertising expense | $ 37,500,000 | $ 23,700,000 | |
Number of reportable segments | segment | 1 | ||
Number of operating segments | segment | 1 | ||
Minimum | |||
Concentration Risk [Line Items] | |||
Lessee, operating lease, renewal term | 1 month | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Lessee, operating lease, renewal term | 5 years | ||
Capitalized internal-use software | Minimum | |||
Concentration Risk [Line Items] | |||
Property and equipment, useful life | 2 years | ||
Capitalized internal-use software | Maximum | |||
Concentration Risk [Line Items] | |||
Property and equipment, useful life | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer equipment and software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Reverse Recapitalization - Narr
Reverse Recapitalization - Narrative (Details) $ in Thousands | Nov. 05, 2021USD ($)shares | Jul. 06, 2021USD ($)shares | Dec. 31, 2021USD ($)voteshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019shares | [1] | |
Business Acquisition [Line Items] | |||||||
Redeemable convertible preferred stock issued (in shares) | 0 | 190,477,000 | |||||
Redeemable convertible preferred stock outstanding (in shares) | 0 | 190,477,000 | [1] | 190,477,000 | |||
Common stock outstanding (in shares) | 382,957,639 | ||||||
Recapitalization exchange ratio | 3.1057 | ||||||
Stock options outstanding (in shares) | 58,278,000 | 46,973,000 | |||||
Shares reserved for issuance (in shares) | 138,713,000 | 250,008,000 | |||||
Sale of stock, consideration received on transaction | $ | $ 270,000 | ||||||
Proceeds from the Reverse Recapitalization | $ | $ 628,500 | $ 628,489 | $ 0 | ||||
Funds held in KVSB's trust account | $ | 416,400 | 416,359 | |||||
Funds held in KVSB's operating cash account | $ | 200 | 194 | |||||
Proceeds from private placement | $ | 270,000 | 270,000 | |||||
Amount paid to redeem public shares | $ | 12,200 | $ 12,221 | |||||
Reverse recapitalization costs incurred | $ | $ 5,700 | ||||||
Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Conversion ratio (in shares) | 1 | ||||||
Legacy Nextdoor | |||||||
Business Acquisition [Line Items] | |||||||
Common stock outstanding (in shares) | 97,886,321 | ||||||
Common stock issued (in shares) | 97,886,321 | ||||||
Stock options outstanding (in shares) | 19,196,313 | ||||||
Legacy Nextdoor | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Convertible preferred stock converted (in shares) | 61,331,815 | ||||||
Legacy Nextdoor | Pixel Labs, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Contingent equity consideration (in shares) | 58,135 | ||||||
Legacy Nextdoor | Unvested RSUs | |||||||
Business Acquisition [Line Items] | |||||||
Unvested restricted stock units (RSUs) | 866,687 | ||||||
Redeemable convertible preferred stock | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock (in shares) | 190,477,421 | ||||||
Conversion ratio (in shares) | 1 | ||||||
Redeemable convertible preferred stock | Legacy Nextdoor | |||||||
Business Acquisition [Line Items] | |||||||
Redeemable convertible preferred stock issued (in shares) | 61,331,815 | ||||||
Redeemable convertible preferred stock outstanding (in shares) | 61,331,815 | ||||||
Class B Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Common stock outstanding (in shares) | 304,003,976 | 304,701,000 | 103,777,000 | ||||
Common stock issued (in shares) | 304,003,976 | 304,701,000 | 103,777,000 | ||||
Recapitalization exchange ratio | 3.1057 | ||||||
Stock options outstanding (in shares) | 59,616,898 | ||||||
Number of votes per share | vote | 10 | ||||||
Class B Common Stock | KVSB | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock (in shares) | 5,000,000 | ||||||
Stock issued in reverse recapitalization (in shares) | 7,347,249 | ||||||
Class B Common Stock | Pixel Labs, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Shares reserved for issuance (in shares) | 180,549 | ||||||
Class B Common Stock | Unvested RSUs | |||||||
Business Acquisition [Line Items] | |||||||
Unvested restricted stock units (RSUs) | 2,691,577 | ||||||
Class B Common Stock | Share-based payment arrangement | |||||||
Business Acquisition [Line Items] | |||||||
Shares reserved for issuance (in shares) | 62,308,475 | ||||||
Class B Common Stock | Legacy Nextdoor | |||||||
Business Acquisition [Line Items] | |||||||
Common stock outstanding (in shares) | 36,554,506 | ||||||
Class A Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Common stock outstanding (in shares) | 78,953,663 | 78,954,000 | 0 | ||||
Common stock issued (in shares) | 78,953,663 | 78,954,000 | 0 | ||||
Conversion of stock (in shares) | 113,526,555 | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 27,000,000 | ||||||
Number of votes per share | vote | 1 | ||||||
Class A Common Stock | KVSB | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock (in shares) | 40,412,372 | ||||||
Stock redeemed during period (in shares) | 1,222,040 | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 750,000 | ||||||
Class A Common Stock | Legacy Nextdoor | |||||||
Business Acquisition [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 4,500,000 | ||||||
Class A Common Stock | Private Placement | KVSB | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock (in shares) | 1,132,688 | ||||||
Class A Common Stock | Chief Executive Officer And President | |||||||
Business Acquisition [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (in shares) | 500,000 | ||||||
Class A Common Stock | Conversion of KVSB Class B Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Stock issued in reverse recapitalization (in shares) | 7,347,249 | ||||||
Class A Common Stock | Conversion of KVSB Class K Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Stock issued in reverse recapitalization (in shares) | 3,061,354 | ||||||
Common Class K | KVSB | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock (in shares) | 5,000,000 | ||||||
Stock issued in reverse recapitalization (in shares) | 3,061,354 | ||||||
[1] | The shares of the Company’s common and redeemable convertible preferred stock prior to the Reverse Recapitalization (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of 3.1057 established in the Merger Agreement as described in Note 3. |
Reverse Recapitalization - Comm
Reverse Recapitalization - Common Stock Issued and Outstanding Following the Reverse Recapitalization (Details) - shares | Nov. 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Business Acquisition [Line Items] | ||||||
Common stock outstanding (in shares) | 382,957,639 | |||||
Shares issued (in shares) | 27,000,000 | |||||
Redeemable convertible preferred stock issued (in shares) | 0 | 190,477,000 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 0 | 190,477,000 | [1] | 190,477,000 | ||
Class B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock outstanding (in shares) | 304,003,976 | 304,701,000 | 103,777,000 | |||
Class A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock outstanding (in shares) | 78,953,663 | 78,954,000 | 0 | |||
Conversion of stock (in shares) | 113,526,555 | |||||
Redeemable convertible preferred stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of stock (in shares) | 190,477,421 | |||||
Conversion ratio (in shares) | 1 | |||||
KVSB | Class B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of shares | 7,347,249 | |||||
Conversion of stock (in shares) | 5,000,000 | |||||
KVSB | Common Class K | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of shares | 3,061,354 | |||||
Conversion of stock (in shares) | 5,000,000 | |||||
KVSB | Class A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Less: redemption of KVSB Class A common stock (in shares) | (1,222,040) | |||||
Conversion of stock (in shares) | 40,412,372 | |||||
KVSB | ||||||
Business Acquisition [Line Items] | ||||||
Common stock outstanding (in shares) | 42,767,100 | |||||
Less: redemption of KVSB Class A common stock (in shares) | (1,222,040) | |||||
Legacy Nextdoor | ||||||
Business Acquisition [Line Items] | ||||||
Common stock outstanding (in shares) | 97,886,321 | |||||
Legacy Nextdoor | Class B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock outstanding (in shares) | 36,554,506 | |||||
Legacy Nextdoor | Redeemable convertible preferred stock | ||||||
Business Acquisition [Line Items] | ||||||
Redeemable convertible preferred stock issued (in shares) | 61,331,815 | |||||
Redeemable convertible preferred stock outstanding (in shares) | 61,331,815 | |||||
[1] | The shares of the Company’s common and redeemable convertible preferred stock prior to the Reverse Recapitalization (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of 3.1057 established in the Merger Agreement as described in Note 3. |
Reverse Recapitalization - Elem
Reverse Recapitalization - Elements Reconciled the Reserve Recapitalization (Details) - USD ($) $ in Thousands | Nov. 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Reverse Recapitalization [Abstract] | |||
Funds held in KVSB's trust account | $ 416,400 | $ 416,359 | |
Funds held in KVSB's operating cash account | 200 | 194 | |
Proceeds from the PIPE Investment | 270,000 | 270,000 | |
Less: amount paid to redeem public shares of KVSB's Class A common stock | (12,200) | (12,221) | |
Less: transaction costs incurred by KVSB | (45,843) | ||
Proceeds from the Reverse Recapitalization | $ 628,500 | 628,489 | $ 0 |
Less: non-cash liabilities assumed from KVSB | (203) | ||
Less: unpaid deferred transaction costs | (314) | ||
Less: payment of transaction costs related to the Reverse Recapitalization | (5,384) | ||
Net cash from issuance of common stock upon the Reverse Recapitalization, net of issuance costs | $ 622,588 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Pixel Labs, Inc - USD ($) $ in Millions | Aug. 27, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 7.6 | ||
Issuance of common stock in connection with acquisition (in shares) | 20,885 | 29,665 | |
Time-Based Cash Holdback | |||
Business Acquisition [Line Items] | |||
Accrued purchase consideration for acquisition | 0.7 | ||
Time-Based Share Holdback | |||
Business Acquisition [Line Items] | |||
Accrued purchase consideration for acquisition | $ 0.2 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Marketable securities: | ||
Amortized Cost | $ 194,016 | $ 53,342 |
Unrealized Gain | 24 | 1 |
Unrealized Loss | (41) | (2) |
Estimated Fair Value | 193,999 | 53,341 |
Total | ||
Amortized Cost | 668,310 | |
Unrealized Gain | 24 | 1 |
Unrealized Loss | (41) | (2) |
Estimated Fair Value | 668,293 | |
Commercial paper | ||
Marketable securities: | ||
Amortized Cost | 83,728 | 27,473 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Estimated Fair Value | 83,728 | 27,473 |
Total | ||
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Corporate securities | ||
Marketable securities: | ||
Amortized Cost | 78,353 | 6,940 |
Unrealized Gain | 24 | 0 |
Unrealized Loss | (14) | (2) |
Estimated Fair Value | 78,363 | 6,938 |
Total | ||
Unrealized Gain | 24 | 0 |
Unrealized Loss | (14) | (2) |
U.S. Treasury securities | ||
Marketable securities: | ||
Amortized Cost | 15,200 | 16,157 |
Unrealized Gain | 0 | 1 |
Unrealized Loss | (12) | 0 |
Estimated Fair Value | 15,188 | 16,158 |
Total | ||
Unrealized Gain | 0 | 1 |
Unrealized Loss | (12) | 0 |
Asset-backed securities | ||
Marketable securities: | ||
Amortized Cost | 16,735 | 2,772 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (15) | 0 |
Estimated Fair Value | 16,720 | 2,772 |
Total | ||
Unrealized Gain | 0 | 0 |
Unrealized Loss | (15) | 0 |
Money market funds | ||
Cash equivalents: | ||
Amortized Cost | 474,294 | 28,371 |
Estimated Fair Value | $ 474,294 | 28,371 |
Total | ||
Amortized Cost | 81,713 | |
Estimated Fair Value | $ 81,712 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due within one year | $ 137,077 | $ 53,342 |
Due after one to four years | 56,939 | |
Total | 194,016 | |
Estimated Fair Value | ||
Due within one year | 137,043 | $ 53,341 |
Due after one to four years | 56,956 | |
Total | $ 193,999 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Fair Value, Recurring - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 668,293,000 | $ 81,712,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | $ 0 |
Financial liabilities | $ 0 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 474,294 | $ 28,371 |
Marketable securities | 193,999 | 53,341 |
Total cash equivalents and marketable securities | 668,293 | 81,712 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 83,728 | 27,473 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 78,363 | 6,938 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,188 | 16,158 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 16,720 | 2,772 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 474,294 | 28,371 |
Marketable securities | 0 | 0 |
Total cash equivalents and marketable securities | 474,294 | 28,371 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 193,999 | 53,341 |
Total cash equivalents and marketable securities | 193,999 | 53,341 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 83,728 | 27,473 |
Level 2 | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 78,363 | 6,938 |
Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,188 | 16,158 |
Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 16,720 | $ 2,772 |
Other Balance Sheet Component_2
Other Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,668 | $ 7,868 |
Less: accumulated depreciation and amortization | (4,123) | (2,150) |
Property and equipment, net | 12,545 | 5,718 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,123 | 2,002 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,201 | 1,174 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,842 | 1,842 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,502 | $ 2,850 |
Other Balance Sheet Component_3
Other Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Depreciation and amortization expense related to property and equipment | $ 2 | $ 1 |
Amortization related to intangible assets | $ 2.2 | $ 2.1 |
Other Balance Sheet Component_4
Other Balance Sheet Components - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,668 | $ 11,668 |
Accumulated Amortization | (6,833) | (4,681) |
Net Carrying Amount | $ 4,835 | $ 6,987 |
Weighted Average Remaining Life (years) | 2 years 9 months 18 days | 3 years 3 months 18 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,068 | $ 7,068 |
Accumulated Amortization | (4,684) | (3,451) |
Net Carrying Amount | $ 2,384 | $ 3,617 |
Weighted Average Remaining Life (years) | 3 years | 3 years |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,600 | $ 4,600 |
Accumulated Amortization | (2,149) | (1,230) |
Net Carrying Amount | $ 2,451 | $ 3,370 |
Weighted Average Remaining Life (years) | 2 years 8 months 12 days | 3 years 8 months 12 days |
Other Balance Sheet Component_5
Other Balance Sheet Components - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2022 | $ 1,773 | |
2023 | 1,773 | |
2024 | 1,054 | |
2025 | 235 | |
Thereafter | 0 | |
Net Carrying Amount | $ 4,835 | $ 6,987 |
Other Balance Sheet Component_6
Other Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation | $ 3,375 | $ 6,888 |
Liability for early exercise of unvested stock options | 690 | 1,133 |
Taxes payable | 879 | 516 |
Deferred revenue | 3,388 | 2,585 |
Other accrued and current liabilities | 7,112 | 3,876 |
Accrued expenses and other current liabilities | $ 15,444 | $ 14,998 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,864 | $ 6,278 |
Short-term lease cost | 525 | 495 |
Variable lease cost | 409 | 452 |
Total | $ 10,798 | $ 7,225 |
Leases - Other Lease Informatio
Leases - Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6,585 | $ 5,624 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | $ 28,252 | $ 39,664 |
Weighted average remaining lease term (years) | 7 years 3 months 18 days | 8 years 2 months 12 days |
Weighted average discount rate (as a percent) | 4.50% | 5.30% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 10,045 | |
2023 | 10,347 | |
2024 | 10,657 | |
2025 | 10,977 | |
2026 | 11,306 | |
Thereafter | 27,697 | |
Total lease payments | 81,029 | |
Less: imputed interest | (12,300) | |
Present value of lease liabilities | 68,729 | |
Less: current operating lease liabilities | (7,131) | $ (3,348) |
Long-term operating lease liabilities | $ 61,598 | $ 36,254 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 18,978 |
2023 | 22,528 |
2024 | 10,417 |
Thereafter | 0 |
Total | $ 51,923 |
Redeemable Convertible Prefer_3
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 05, 2021shares | Mar. 31, 2021 | Dec. 31, 2021USD ($)vote$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2018shares |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Recapitalization exchange ratio | 3.1057 | ||||
Preferred stock authorized (in shares) | 50,000,000 | ||||
Preferred stock, par value (in USD per share) | $ / shares | $ 0.0001 | ||||
Preferred stock issued (in shares) | 0 | ||||
Preferred stock outstanding (in shares) | 0 | ||||
Common stock authorized (in shares) | 375,788,212 | ||||
Current liability related to common stock subject to repurchase | $ | $ 700 | $ 1,100 | |||
Unvested shares of common stock subject to repurchase (in shares) | 421,594 | 692,990 | |||
Liability related to restricted stock subject to repurchase | $ | $ 4,800 | $ 10,500 | |||
Stock-based compensation expense | $ | $ 47,514 | $ 22,608 | |||
Shares reserved for issuance (in shares) | 138,713,000 | 250,008,000 | |||
Options granted, weighted average grant date fair value (in USD per share) | $ / shares | $ 3.63 | $ 2.40 | |||
Options vested (in shares) | 18,455,667 | 13,012,287 | |||
Weighted average grant-date fair value of options vested (in USD per share) | $ / shares | $ 2.23 | $ 1.64 | |||
Intrinsic value of options exercised | $ | $ 31,900 | $ 9,800 | |||
Options granted (in shares) | 25,262,000 | ||||
Unrecognized stock-based compensation expense | $ | $ 123,200 | ||||
Unrecognized stock-based compensation expense, expected period of recognition | 2 years 4 months 24 days | ||||
Common Stock | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Conversion ratio (in shares) | 1 | ||||
CEO | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Options granted (in shares) | 2,308,097 | ||||
Non-employee | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Options granted (in shares) | 19,639 | ||||
The 2018 Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period | 4 years | ||||
Shares reserved for issuance (in shares) | 4,043,637 | ||||
The 2021 Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Shares reserved for issuance (in shares) | 46,008,885 | ||||
Increase in number of stock available for grant as a proportion of common stock outstanding (as a percent) | 5.00% | ||||
Outstanding stock options | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period | 4 years | ||||
Stock-based compensation expense | $ | $ 8,500 | ||||
Minimum threshold of voting power (as a percent) | 10.00% | ||||
Minimum proportion of fair market value of stock options granted to grantees that own more than 10% of voting power (as a percent) | 110.00% | ||||
Expiration period | 10 years | ||||
Expected dividend yield (as a percent) | 0.00% | ||||
Unrecognized stock-based compensation expense | $ | $ 0 | ||||
Stock Options - Grantees Owning >10% of Voting Power | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Expiration period | 5 years | ||||
Unvested restricted stock | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Awards issued during period (in shares) | 15,408,183 | ||||
Vesting period | 48 months | ||||
Unvested restricted common stock subject to repurchase (in shares) | 3,210,037 | 7,062,082 | |||
Stock-based compensation expense | $ | $ 4,600 | $ 4,600 | |||
Unvested RSUs | The 2018 Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period | 4 years | ||||
Class A Common Stock | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Common stock authorized (in shares) | 2,500,000,000 | 0 | |||
Number of votes per share | vote | 1 | ||||
Class A Common Stock | Unvested RSUs | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period | 4 years | ||||
Class A Common Stock | ESPP | The 2021 Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Shares reserved for issuance (in shares) | 8,901,159 | ||||
Class B Common Stock | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Number of shares converted (in shares) | 190,477,421 | ||||
Recapitalization exchange ratio | 3.1057 | ||||
Common stock authorized (in shares) | 500,000,000 | 375,788,000 | |||
Number of votes per share | vote | 10 | ||||
Class B Common Stock | ESPP | The 2021 Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Shares reserved for issuance (in shares) | 89,011,590 | ||||
ESPP, purchase price as proportion of common stock price (as a percent) | 85.00% | ||||
Increase in number of stock available for grant as a proportion of common stock outstanding (as a percent) | 1.00% |
Redeemable Convertible Prefer_4
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) - Shares Reserved for Future Issuance (Details) - shares shares in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Redeemable convertible preferred stock (in shares) | 0 | 190,477 |
Stock options outstanding (in shares) | 58,278 | 46,973 |
Unvested restricted stock units (RSUs) (in shares) | 2,511 | 0 |
Shares reserved for future award issuances (in shares) | 77,924 | 12,558 |
Total (in shares) | 138,713 | 250,008 |
Redeemable Convertible Prefer_5
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | ||
Beginning balance (in shares) | 46,973 | |
Options granted (in shares) | 25,262 | |
Options exercised (in shares) | (10,325) | |
Options forfeited or expired (in shares) | (3,632) | |
Ending balance (in shares) | 58,278 | 46,973 |
Options vested and exercisable (in shares) | 23,443 | |
Weighted- Average Exercise Price | ||
Beginning balance (in USD per share) | $ 1.80 | |
Options granted (in USD per share) | 3.05 | |
Options exercised (in USD per share) | 1.48 | |
Options forfeited and expired (in USD per share) | 2.50 | |
Ending balance (in USD per share) | 2.35 | $ 1.80 |
Options vested and exercisable (in USD per share) | $ 1.72 | |
Additional Disclosures | ||
Options outstanding, weighted average remaining contractual term (years) | 8 years 1 month 6 days | 7 years 9 months 18 days |
Options vested and exercisable, weighted average remaining contractual term (years) | 6 years 7 months 6 days | |
Options outstanding, aggregate intrinsic value | $ 322,799 | $ 28,467 |
Options vested and exercisable, aggregate intrinsic value | $ 144,608 |
Redeemable Convertible Prefer_6
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) - Restricted Stock Units (Details) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 0 |
RSUs granted (in shares) | shares | 2,701 |
RSUs vested (in shares) | shares | (166) |
RSUs forfeited (in shares) | shares | (24) |
Ending balance (in shares) | shares | 2,511 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in USD per share) | $ / shares | $ 0 |
RSUs granted (in USD per share) | $ / shares | 8.74 |
RSUs vested (in USD per share) | $ / shares | 8.91 |
RSUs forfeited (in USD per share) | $ / shares | 7.68 |
Ending balance (in USD per share) | $ / shares | $ 8.74 |
Redeemable Convertible Prefer_7
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) - Fair Value Assumptions (Details) - Employee and Non-employee Stock Option - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum (as a percent) | 53.70% | 48.80% |
Expected volatility, maximum (as a percent) | 54.50% | 53.40% |
Expected term (years) | 6 years 3 months 18 days | 6 years |
Risk-free interest rate (as a percent) | 1.10% | 0.60% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock per share (in USD per share) | $ 4.92 | $ 3.89 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of common stock per share (in USD per share) | $ 6.83 | $ 4.23 |
Redeemable Convertible Prefer_8
Redeemable Convertible Preferred Stock, Common Stock, and Stockholders’ Equity (Deficit) - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 47,514 | $ 22,608 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,466 | 905 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 20,690 | 10,235 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 6,388 | 3,403 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 18,970 | $ 8,065 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Narrative (Details) | Dec. 31, 2021 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Recapitalization exchange ratio | 3.1057 |
Class B Common Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Recapitalization exchange ratio | 3.1057 |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net loss attributable to common stockholders, basic | $ (75,234) | |
Net loss attributable to common stockholders, diluted | $ (75,234) | |
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 146,337 | 90,190 |
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 146,337 | 90,190 |
Net loss per share attributable to common stockholders, basic (in USD per share) | $ (0.65) | $ (0.83) |
Net loss per share attributable to common stockholders, diluted (in USD per share) | $ (0.65) | $ (0.83) |
Class A Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net loss attributable to common stockholders, basic | $ (8,032) | |
Net loss attributable to common stockholders, diluted | $ (8,032) | |
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 12,330 | |
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 12,330 | |
Net loss per share attributable to common stockholders, basic (in USD per share) | $ (0.65) | |
Net loss per share attributable to common stockholders, diluted (in USD per share) | $ (0.65) | |
Class B Common Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net loss attributable to common stockholders, basic | $ (87,293) | |
Net loss attributable to common stockholders, diluted | $ (87,293) | |
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 134,007 | |
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 134,007 | |
Net loss per share attributable to common stockholders, basic (in USD per share) | $ (0.65) | |
Net loss per share attributable to common stockholders, diluted (in USD per share) | $ (0.65) |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable to Common Stockholders - Potentially Dilutive Securities Outstanding (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 64,602 | 245,409 |
Redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 0 | 190,477 |
Outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 58,278 | 46,973 |
Unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 2,511 | 0 |
Unvested early exercised stock options subject to repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 422 | 693 |
Unvested restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 3,210 | 7,062 |
Contingently issuable shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in shares) | 181 | 204 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Employer matching contribution cost | $ 1,100,000 | $ 0 |
Employed discretionary contribution amount | $ 0 |
Income Taxes - Loss Before Inco
Income Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (94,693) | $ (74,882) |
Foreign | (475) | (225) |
Loss before income taxes | $ (95,168) | $ (75,107) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 146 | 11 |
Foreign | 11 | 116 |
Total current provision for income taxes | 157 | 127 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | 0 | 0 |
Total deferred provision for income taxes | 0 | 0 |
Total provision for income taxes | $ 157 | $ 127 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | (21.00%) | (21.00%) |
State tax | 0.20% | (2.50%) |
Permanent items | 0.70% | 0.40% |
Transaction costs | (4.80%) | 0.00% |
Stock-based compensation | 6.60% | 4.30% |
R&D credit | (4.20%) | (4.20%) |
Other | 0.00% | 0.10% |
Changes in valuation allowance | 22.80% | 22.90% |
Foreign rate differential | (0.10%) | 0.20% |
Effective tax rate | 0.20% | 0.20% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss | $ 96,423 | $ 82,031 |
Credit carryforwards | 14,162 | 10,143 |
Stock-based compensation | 5,924 | 3,149 |
Lease liability | 16,691 | 9,288 |
Reserves, accruals and other | 1,774 | 1,152 |
Other | 331 | 0 |
Total deferred tax assets | 135,305 | 105,763 |
Valuation allowance | (120,873) | (96,044) |
Total deferred tax assets, net | 14,432 | 9,719 |
Deferred tax liabilities: | ||
Fixed asset basis and other | 0 | (858) |
ROU asset basis | (14,432) | (8,861) |
Total deferred tax liabilities | (14,432) | (9,719) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | |||
Change in valuation allowance | $ 24,800,000 | $ 8,700,000 | |
Gross deferred tax assets | 135,305,000 | 105,763,000 | |
Unrecognized tax benefits that would impact effective tax rate | 0 | ||
Unrecognized tax benefits | 13,902,000 | 10,143,000 | $ 6,971,000 |
Unrecognized tax benefits, interest and penalties accrued during year | 0 | 0 | |
Unrecognized tax benefits, penalties and interest accrued | 0 | $ 0 | |
Federal | |||
Income Tax Examination [Line Items] | |||
Operating loss carryforwards | 390,000,000 | ||
Operating loss carryforwards, carried forward indefinitely | 214,100,000 | ||
Tax credit carryforward | 16,600,000 | ||
State | |||
Income Tax Examination [Line Items] | |||
Operating loss carryforwards | 226,000,000 | ||
Tax credit carryforward | $ 14,200,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross unrecognized tax benefits - beginning of year | $ 10,143 | $ 6,971 |
Increases related to current year tax positions | 3,759 | 3,129 |
Increases related to prior year tax positions | 0 | 43 |
Gross unrecognized tax benefits - end of year | $ 13,902 | $ 10,143 |
Geographical Information - Summ
Geographical Information - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 192,197 | $ 123,284 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 183,724 | 119,118 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 8,473 | $ 4,166 |