Ruslan Kogan wants the business valued like a software stock.Ruslan Kogan says investors should start valuing Kogan.com like a software stock and not as the eponymous online retailer known for its cheap gadgets and tech accessories.
The business has worked to run down its inventory, which it accrued after over-buying at the tail-end of COVID-19 lockdowns, and said this had reduced to $68.2 million at June 30, or more than 57 per cent.and Mr Kogan believed this was down to advances in its “platform-based” businesses.platform sales exceeded sales derived from its retail inventory for the first time, and that he expected this to grow and reduce its reliance on retail performance.
More than 57 per cent of gross sales and 71 per cent of gross profit was generated from platform-based sales. “To Kogan’s credit, they have overseen steady loyalty program growth since launching, despite pushing though some pretty large price increases for membership, and active customers declining by approximately 30 per cent since December 2021,” Mr Chen said.“One way around paying more for digital ads ... is for online businesses to lean more on loyal, repeat customers, which is why growing Kogan First membership is a key focus for management.