Why These Two Shares Are Charging Higher Today? - KGN, CTD

Investors are closely watching Kogan.com Limited (ASX: KGN) and Corporate Travel Management Limited (ASX: CTD) as both companies have made significant announcements contributing to their soaring stock prices.

Kogan.com Returns to Quarterly Growth and Profitability

Kogan.com, led by Founder and CEO Ruslan Kogan, has successfully returned to a position of continuous profitability growth and financial strength. This achievement comes alongside the company's growth in quarterly Gross Sales, marking the first time since 1QFY22, following a period of planned consolidation.

In this latest quarter, Kogan.com introduced Mighty Mobile, an initiative under the Mighty Ape brand, offering New Zealand customers the first-ever unlimited-data mobile plans. The loyalty program, Kogan FIRST, expanded, with more than 440,000 subscribers by the end of the quarter. Kogan.com aims to enhance the value it delivers to its most loyal customers and remains committed to providing affordable and accessible in-demand products and services.

Key financial highlights for 1QFY24 include Gross Sales of AU$189.2 million, reflecting a 6.5% YoY decline but marking a return to growth QoQ. Gross Profit increased by 19.5% YoY, driven by a growing Gross Margin. The Gross Margin improved by 9.8pp YoY, supported by excess inventory sell-through and a growing proportion of Platform-Based Sales.

Corporate Travel Management's Strong Start to FY24

Corporate Travel Management (CTM) had a robust start to FY24, with revenue up 36% from FY23. The company's incremental revenue-to-profit conversion is on track, with EBITDA up 157%. Large clients in North America, Australia, and Europe are gradually improving, with CTM's recovery segment showing strength.

CTM secured AU$0.5 billion in new client wins year-to-date, and projects related to automation and artificial intelligence are underway and expected to positively impact productivity for years to come.

As a high-quality compound ROE model, CTM boasts a well-diversified client base and geographical presence. The company's global expansion has made it one of the top corporate travel management firms worldwide. CTM generates approximately 80% of its revenue offshore and has received industry awards, including "Best Corporate Agency in Asia" and "Best Booking Tool (Lightning) in Europe."

The corporate travel market is expected to grow at a rate of 7.9% per annum from FY23 to FY26, making it a superior growth thematic.

Investors are encouraged by these positive developments, and both Kogan.com and Corporate Travel Management are poised for continued growth in the future.

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