The Kogan.com Ltd (ASX: KGN) share price is up 12% to $5.05 today after it handed out another ebullient trading update on its progress across multiple new business lines and operating metrics.
Kogan shares have swung wildly in value since it listed in July 2016 at $1.80 per share to hit highs of $9.85 in March 2018 through to lows of $2.70 in November 2018, as investors struggle to value a business that is growing quickly but operates on thin profit margins.
It also has an entrepreneurial leader and founder in Ruslan Kogan who has sold a lot of shares since it listed, although he does retain a large stake and undoubted commitment to the business.
Today the group revealed that for the quarter ending March 31 2019 transaction value growth was 17.5% that translated into revenue growth of 9.9%.
For the nine month period ending March 31 2019 it also reported EBITDA or operating income grew 15%, with EBITDA growth of 96% in the March 2019 quarter. However, it did not reveal the actual dollar values for any of the operating metrics quoted above.
The group’s entrepreneurial flare also came to the fore again as it provided brief updates on its new home broadband, insurance, mobile phone, and energy market ventures.
It also announced the launch of Kogan Cars in partnership with ASX-listed straggler Elicpx Group Ltd (ASX: ECX).
Given the number of moving parts it’s not hard to see why Kogan’s valuation swings wildly.
I’m not a buyer of Kogan shares, as I have little idea which way the share price is likely to head.
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The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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