Why Nextdoor is optimistic about AI-fueled growth despite declining user count
By Marty Swant
User growth has often been a seen as a leading indicator for the health of social networks, but could generative AI shift the focus to other types of growth?
When it reported second quarter earnings on Tuesday, Nextdoor saw revenue increase 4% to $56.9 million after several quarters of decline — clearly a positive swing. Meanwhile, the neighborhood-focused app saw session growth outpace total weekly active users — which fell 1.8% from the first quarter to 41.6 million — with more engagement attributed to the company’s investments in artificial intelligence.
In May, Nextdoor launched a new “Assistant” powered by OpenAI’s ChatGPT to help people give and receive business recommendations, while also offering users ideas for writing posts that receive more engagement and that are respectful to their fellow users. According to Nextdoor CEO Sarah Friar, there’s been an “uptick” in people accepting and using genAI tools, adding that for some people it’s “probably their first experience of a ChatGPT-type experience in a high-utility setting.”
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Source:: Digiday
