Kogan.com’s overall gross sales for the full year were down by $40 million from $849.7 million in FY23 to $808.9 million in FY24. This included a 14.2 per cent dive in its products, a 12.1 per cent fall in its marketplace sales and a 4.8 per cent drop in its gaming subsidiary Mighty Ape.
Alongside the falls, Kogan.com made gains in its verticals, which include Kogan Money and Kogan Insurance, with a $12.6 million lift to $121.8 million. Its Kogan First membership program nearly doubled to $55.7 million, with advertising revenue hitting $4.5 million, up from $2.8 million in FY23.
Despite the overall fall in revenue, Kogan.com recorded a 31.9 per cent lift in gross profit for Kogan.com, with an $800,000 lift in profit for its Mighty Ape subsidiary. The business also recorded a 487.6 per cent lift in earnings before interest, tax, depreciation and amortisation (EBITDA) to $40 million.
Kogan.com’s revenue in the final quarter, excluding Mighty Ape, has improved by $4.8 million to $75.9 million, with total revenue including Mighty Ape up by $200,000. Marketplace sales were still down in the final quarter by 14.6 per cent.
Founder and CEO Ruslan Kogan said much of the wins in its full-year sales come from its Kogan First membership program.
“It’s incredible to reflect on the fact that we launched Kogan First just four years ago,” Kogan said. “In that time, we have significantly expanded the program’s benefits, and it’s fantastic to see over half a million smart shoppers recognising this value.
“Having ended the financial year on a high, our team is thrilled to carry this momentum into FY25. We remain committed to consistently delivering even more remarkable value to our millions of customers every day.”
Online platforms The Iconic and Redbubble also recorded similar declines in revenue this year, with The Iconic’s net merchandise value (NMV) falling 16.4 per cent in the first quarter of 2024, while Redbubble sales fell 12 per cent in the same timeframe. Both companies are yet to share their latest quarter results.
The Iconic sells fashion and beauty through direct-to-consumer or third-party models, and Redbubble is a marketplace that sells print-on-demand products based on user-submitted artwork across various categories including fashion, home and accessories.