March quarter revenue growth and surging customer numbers have failed to impress online retailer Kogan’s investors, who sent the company’s share price down 17 percent yesterday in response to a quarterly update released via the ASX.
In its third financial quarter, ending 31 March, Kogan reported revenue growth of 46.1 percent, compared to the prior corresponding quarter, and posted gross transaction value growth of 49.8 percent.
The company reported its active customers were at 1.28 million as of the end of March, up from 1.1 million at the end of 2017. Kogan ended its third quarter with cash of $19.3 million.
Providing an update on the results, Kogan founder and chief executive Ruslan Kogan said the company had kicked off the calendar year with a strong quarter of growth.
“Our team is delighting customers across the board and our portfolio strategy is starting to gain strong momentum,” he wrote to investors. “The business is poised to continue its growth trajectory into the seasonally strong end-of-financial year quarter.”
Despite the positivity and reported growth, Kogan's shares finished the day of trading on the ASX 17.75 percent lower than they had started, falling to $7.63 from Friday’s close of $9.24.
Kogan has been enjoying steady revenue growth in recent quarters, in February it reported 46 percent growth in its 2018 financial half-year, for the period ending 31 December 2017, to hit $209.6 million for the period, up from $143.9 million in its previous first half. Kogan posted $289.5 million in revenue in the full 2017 financial year.
The start of this calendar year also saw Kogan unveil its first NBN plans, in partnership with Vodafone. The company has also diversified into mobile, insurance and other business areas.