Kogan.com (KGN) H2 2024 earnings summary

Executive summary

• Returned to strong profitability in FY24 after pandemic-related disruptions and two years of restructuring, driven by platform-based sales, operational resilience, and improved operating leverage.

• Over 2.6 million customers served, with Kogan FIRST and Mighty Ape PRIMATE loyalty programs showing strong subscriber growth, exceeding 502,000 Kogan FIRST subscribers.

• Strategic shift to capital-light, recurring revenue streams, including marketplace, verticals, and advertising, supporting marketing efficiencies.

• Platform-based sales, Kogan FIRST, and Verticals were key contributors to higher quality earnings and customer loyalty.

Financial highlights

• Gross Sales: $809.0 million (down 4.8% YoY); Revenue: $459.7 million (down 6.1% YoY); Gross Profit: $168.4 million (up 23.3% YoY); Gross Margin: 36.6% (up 8.7pp); Adjusted EBITDA: $40.0 million; Adjusted EBIT: $28.3 million; Adjusted NPAT: $21.0 million.

• Platform-based sales represented 62% of gross sales and contributed over 53% of gross profit.

• Fully franked final dividend of 7.5c per share, totaling 15.0c per share for FY24, reinstated after prior year suspension.

• Ended FY24 with $41.2 million in cash and no debt.

Outlook and guidance

• No formal earnings guidance for FY25; regular business updates and next update at AGM.

• July 2024 unaudited results: Gross Sales $63.9 million (+2.1% YoY), Revenue $40.3 million (+15.6% YoY), Gross Profit $15.6 million (+23.0% YoY), Adjusted EBITDA $5.3 million (+53.4% YoY).

• Key initiatives for FY25 include launching the Mighty Ape Marketplace, a new mobile app, and further scaling the advertising platform.