Kogan revenue gets boost from strong Marketplace growth

Kogan saw its quarterly revenue boosted by its third party reseller platform Kogan Marketplace, making up for comparably slower growth from its other brands.

In a brief business update posted via the ASX, Kogan revealed group revenue for the third quarter of FY2021 is up 65 percent year over year, including numbers from recent acquisition Mighty Ape.

Excluding Mighty Ape, Kogan.com revenue was up 41 percent with Kogan Marketplace as its top performing segment, doubling its revenue from Q3 of FY2020.

Gross sales also increased by more than 47 percent, while gross profit grew 54 percent. Adjusted EBITDA declined 24 percent due to one-off costs.

Kogan.com also saw its active customer numbers up by more than 77 percent to 3.2 million, while Mighty Ape now has 740,000.

Kogan said the results came as it continued its long term strategy of investing in technology, brand awareness, logistics capability, platform improvements and Kogan First membership benefits.

“I am proud of the way the Kogan.com team has maintained a razor sharp focus on delighting customers through a dynamic environment. The Kogan.com team has continued to deliver strong growth while investing in the future of the business and quickly adapting to changing circumstances,” Kogan.com founder and chief executive Ruslan Kogan said.

“We have maintained a strategy throughout the pandemic to be there for our customers during a period they need us most. We have continued to invest in some of the most important consumer goods — delivering essential items quickly to homes around Australia and New Zealand. While short term trading conditions can fluctuate, we remain focused and committed to our long term vision.

“Kogan First is an important part of our long term strategy, and we are proud to have increased our investment in Kogan First membership benefits to more than $2.5 million in the quarter.”

Looking ahead, Kogan is banking on its increased customer base, investments in key strategic initiatives and high levels of in-demand inventory to fuel its growth heading into the end of financial year and Christmas trading periods.