Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gogoro Inc (GGR, Financial) reported an increase in battery swapping service revenue, up 3.8% year over year, driven by a larger subscriber base.
- The company ended Q3 with 626,000 accumulated subscribers, showing growth from 570,000 subscribers at the end of Q3 2023.
- Gogoro Inc (GGR) is focusing on cost management, achieving reductions in G&A and R&D expenses totaling $4.4 million.
- The company is prioritizing key expansion markets, including India, where it is nearing the completion of a battery pack factory.
- Gogoro Inc (GGR) is committed to enhancing customer experience through battery upgrades, extended warranty programs, and software updates.
Negative Points
- Gogoro Inc (GGR) received a Nasdaq listing compliance notice due to its stock price falling below $1 per share.
- The company faced a net loss of $18.2 million in Q3, an increase from a net loss of $3.1 million in the same quarter last year.
- Gross margin declined significantly to 5.4% from 18.3% in the same quarter last year, impacted by various factors including battery pack upgrade costs.
- Total revenue for Q3 was $86.9 million, down 5.3% year over year, with a decrease in sales of hardware and other revenues by 10.6%.
- Gogoro Inc (GGR) is adjusting its revenue expectations for the year to a lower level than previously expected due to softer market performance in Taiwan and delays in international sales.
Q & A Highlights
Q: What possible action plans are you implementing to raise your stock price back above $1?
A: Bruce Aitken, CFO, stated that Gogoro received a Nasdaq noncompliance letter and is committed to regaining compliance. The company has 180 days to achieve a stock price above $1 for 10 consecutive days. They plan to focus on business fundamentals to naturally increase the stock price, but are also considering inorganic steps if necessary.
Q: Is there a solid plan to address the Taiwanese negative press and sales weakness, and lack of revenue conversions from overseas ventures?
A: Henry Chiang, Interim CEO, outlined a three-point plan focusing on establishing a profitable business, enhancing customer experience in Taiwan, and prioritizing key expansion markets. The company aims to return to its core vision of transitioning gas-powered scooters to electric ones.
Q: Can Taiwan operations become a double-digit margin business over the next couple of years with the cost savings program from 2025?
A: Bruce Aitken, CFO, explained that the Taiwan business is healthy, particularly the battery swapping segment. The company is working on cost reduction programs across various areas to maintain healthy margins and improve overall business performance.
Q: Are there any plans to allow customers to own and buy their own battery systems for scooters and home energy storage?
A: Bruce Aitken, CFO, acknowledged the capital-intensive nature of the battery subscription service. While the company has not pursued customer-owned battery systems, they are open to exploring new business models, including potential customer ownership of batteries.
Q: Can you give an update on India?
A: Bruce Aitken, CFO, mentioned that Gogoro has conducted pilot programs in India and is working with potential partners to roll out GoStations and vehicles. The company is nearing completion of a battery pack factory in India and is engaging with the government to align policies supporting battery swapping.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
