Nextdoor SPAC Presentation Deck
Risk Factors
Risks Related to Nextdoor's Business and Industry Following the [Business Combination]
1. Nextdoor has a limited operating history at the current scale of its business and is still scaling up its monetization efforts, which makes it difficult to evaluate its current business and future prospects, and there is no assurance it will be able to scale its business for future
growth.
2. Nextdoor generates substantially all of its revenue from advertising. If advertisers reduce or eliminate their spending with Nextdoor, Nextdoor's business, operating results, and financial condition would be adversely impacted.
3. Nextdoor's ability to attract and retain advertisers depends on its ability to collect and use data and develop products to enable it to effectively deliver and accurately measure advertisements on the Nextdoor platform.
4.
If Nextdoor fails to add new neighbors or retain current neighbors, or if current neighbors engage less with Nextdoor, its business, operating results, and financial condition would be adversely impacted.
5.
Nextdoor's business is highly competitive. Competition presents an ongoing threat to the success of Nextdoor's business.
6.
Nextdoor's business is dependent on its ability to maintain and scale its product offerings and technical infrastructure, and any significant disruption in the availability of Nextdoor's platform could damage Nextdoor's reputation, result in a potential loss of neighbors and
engagement, and adversely affect Nextdoor's business, operating results, and financial condition.
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Nextdoor has experienced rapid growth and expects to invest in its growth for the foreseeable future. If Nextdoor fails to manage its growth effectively, its business, operating results, and financial condition would be adversely affected.
If Nextdoor does not successfully anticipate market needs and develop products and services and platform enhancements that meet those needs, or if those products, services and platform enhancements do not gain market acceptance, its business, operating results, and
financial condition will be adversely impacted.
9. If Nextdoor's efforts to build strong brand identity and reputation are not successful, it may not be able to attract or retain neighbors, and its business, operating results, and financial condition will be adversely affected.
10. Unfavorable media coverage negatively affects Nextdoor's business from time to time.
11. Health epidemics, including the COVID-19 pandemic have had or could have an adverse impact on Nextdoor's business, operations and the markets and communities in which Nextdoor, its partners and its customers operate.
12. Nextdoor plans to continue expanding its international operations where it has limited operating experience and may be subject to increased business and economic risks that could seriously harm its business, operating results, and financial condition.
13. If Nextdoor needs additional capital in the future, it may not be available on favorable terms, if at all.
14. Nextdoor plans to continue to make acquisitions, which could harm its financial condition or results of operations and may adversely affect the price of its Class A common stock.
15. Nextdoor's business depends largely on its ability to attract and retain talented employees, including senior management. If Nextdoor loses the services of Sarah Friar, its Chief Executive Officer, or other members of its senior management team, Nextdoor may not be able to
execute on its business strategy.
16. Nextdoor's core values may conflict with the short-term interests of its business.
17. Nextdoor is dependent on Google Ad Manager ("GAM") for a substantial majority of its revenue. Any failure or change in the GAM product or its terms and conditions, data usage or pricing could adversely affect Nextdoor's business, operating results, and financial condition.
18. Nextdoor relies on third-party software and service providers, including Amazon Web Services ("AWS"), to provide systems, storage and services for its platform. Any failure or interruption experienced by such third parties, including as a result of the COVID-19 pandemic,
could result in the inability of neighbors and advertisers to access or utilize Nextdoor's platform, and adversely impact Nextdoor's business, operating results, and financial condition.
19. Nextdoor relies on third parties, including email providers, mobile data networks, geolocation providers and the United States Postal Service ("USPS") to verify its neighbors' addresses. Any failure or interruption experienced by such third parties, including the USPS, could
result in the inability of neighbors to join Nextdoor's platform, resulting in harm to Nextdoor's reputation and an adverse impact to its business, operating results, and financial condition.
20. Technologies have been developed that can block the display of advertisements on the Nextdoor platform, which could adversely impact its business, operating results, and financial condition.
21. Security breaches and improper access to or disclosure of Nextdoor's data or its neighbors' data, or other hacking and phishing attacks on Nextdoor's or third-party systems, could harm its reputation and adversely affect its business.
22. Distribution and marketing of, and access to, Nextdoor's platform depends, in significant part, on a variety of third-party publishers and platforms (including mobile app stores, third party payment providers, computer systems, and other communication systems and service
providers). If these third parties limit, prohibit or otherwise interfere with or change the terms of the distribution, use or marketing of Nextdoor's platform in any material way, it could materially adversely affect Nextdoor's business, operating results, and financial condition.
23. Nextdoor's platform and internal systems rely on software and hardware that is highly technical, and any errors, bugs, or vulnerabilities in these systems, or failures to address or mitigate technical limitations in Nextdoor's systems, could adversely affect its business.View entire presentation