Despite Kogan.com's first-half revenue dropping nearly 10%, its net profit jumped 206% to nearly $9 million.
👉 Background: Kogan.com is the company that was started by Ruslan Kogan in his parents' garage in 2006. While Kogan.com started with just TVs, its expanded into to almost any product you can imagine (yes, including shaving razors and handheld fans).
👉 What happened: Now, despite Kogan.com's first-half revenue dropping nearly 10%, its net profit jumped 206% to nearly $9 million. The reason for this success is a shift in how Kogan.com earns its revenue.
👉 What else: Kogan.com has shifted from generating their revenue from TVs and washing machines to platform products (ie credit cards, home loans, car insurance, energy and subscriptions).
💡Asset light can be just right. Get this: Kogan.com now makes 63% of its profits from its subscriptions and online services.
💡When you're selling a couch, you've got manufacturing, warehousing, and delivery costs. And once you've shipped the couch, there's not much profit left over. But when it comes to software or subscriptions, there are very little overheads and juicy margins - especially when you already have the customer.
💡Kogan.com is pushing hard with its membership program, Kogan FIRST, as well as its revenue from mobile, insurance, and internet plans. And, it seems like investors are fully on board - its share price jumped more than 20% off the back of this news.
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