Kogan.com shares are tanking for a second day

Photo: Philppe Lopez/ AFP/ Getty Images.

Shares in Kogan.com fell hard for the second trading session in a row.

The shares have dropped almost 25% since last Friday’s close.

At the close, they were down 11.1% to $5.19, after dropping 11.7% yesterday. Kogan.com listed on the ASX in 2016 at $1.80 a share.

In a quarterly update, the pure-play online retailer reported that its full year revenue grew more than 40% in 2018 to around $405 million in 2018.

However, earnings were down on expectations. The company said EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) for 2018 was more than 90% higher than 2017’s $12.5 million. Analysts had expected 117%.

At the end of June, the company had cash of $41.99 million and access to a $10.0 million bank facility.

And Kogan.com closed the year with active customers of 1,388,000 compared to 955,000 the year before.

“Kogan.com finished the financial year with a strong quarter of continued growth, as we execute our long term strategy,” says Kogan.com Founder and CEO Ruslan Kogan.

“We are excited about all the growth initiatives we are implementing, as we continue to make the most in-demand products and services more accessible and affordable for our customers.”

At the end of June, the company had cash of $41.99 million and access to a $10.0 million bank facility.

Kogan.com is generally liked by analysts because the online player has a scalabe business model which doesn’t need a lot of capital thrown at it.

UBS in May forecast that Kogan.com’s verticals, its growing portfolio businesses, will account for about 27% of group gross profit by the 2021 financial year.

Kogan.com has been expanding its portfolio offering, last month signing supply and logistics agreements which allow it to enter the Australian Whitegoods and Built-In Kitchen Appliance Market with its own range of exclusive brand price-competitive products.

The company has Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel.

In February, Kogan.com posted a 45.7% jump in revenue to $209.62 million for the six months to December. Profit was $8.33 million, up 470%.

Ruslan Kogan owns about half of the company. Last month he and chief financial officer David Shafer together sold a combined 6 million shares.

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