Gogoro (GGR) 14 Nov 242024 Q3 Earnings call transcript

Welcome to the Gogoro Inc. 2024 Q3 Earnings Call. This conference call is now being recorded and broadcasted live over the internet. Webcast replay will be available within an hour after the conference is finished. I'd like to turn the call over to the Gogoro team.

QX Chiang; Call, and XXXX Interim by Gogoro's Henry CEO, CFO, to Earnings hosted Conference our Welcome Bruce Aitken. you've now by seen release. earnings Hopefully, our

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like everyone statements the cause could contained from release today. may and we are in remind investor statements. Please that statements presentation the provided usual, materially today's to in forward-looking results to that risks forward-looking uncertainties, As subject forward-looking those that press to appear differ contain would our and discussions actual which to refer

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necessary to steps take regain and listed to the committed shareholder requirements with plan remaining to Nasdaq's fully on confidence. and are We regain Nasdaq all listing to compliance

update and Chiang, Gogoro's role new first Interim Now months you in I'd to his like plans for to introduce on an CEO, X you give the to Henry our future. his

Gogoro phase leading the into an honor new growth expansion. to be and of It's Bruce. Thanks,

fundamentals reevaluate will plan our revenue priorities business for that and company a As given believe us stronger new and and Bruce opportunity presented take QX said, also a will and era challenges, business establish unexpected growth. I us an but into has the it increased that has trends lead to to

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been all our insufficient Affairs' scooter VIVA Times that Ministry We domestic after of was partners to that working Economic there production Gogoro's customers, government proud hearing, and a subsidy support and Administration of will so. Taiwan's from stated do is our Industrial we October the continue and controller Taiwan have submitted with government. on to evidence concerns of violated and the conclude documents Taiwan motor heritage address reported closely committee review Taiwan's Development their guidelines. Gogoro the received to Commercial technical a Xst that have conduct examined the

essence, transition vision execution-oriented Smartscooters. is the a who become a discipline get includes of for level be although shift makers mass our and was And that and an vehicle nearly new operate more and swapping and technology smart than requires in have our into we emerging strong we that do. Growing to vehicles. and back a business mindset, XX electric become created have industry a for a to mature business. this of we brand, a want are vision enabling to leader in and XX return belief We our who and scooters At to what how realize core network gas-powered battery we must we as we Taiwan created clear to

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our battery our on on investments our swapping and transforming to focus capitalizing batteries, are second past stations, business. spending R&D and infrastructure R&D We life

energy a UPS recently with Taipower that proof-of-concept completed Gogoro we XXX For second-life storage to utilized energy. on an example, provide batteries system

and to back an consistently network are make goes to battery are them experience experience we business in we importance experience the our and core Smartscooter delivering our Second, being delighting demanding and affordable. reliable the that Gogoro's identifying This use, is determined energy with for applaud embracing and on of our swapping We Taiwan. customers and our and to beliefs begins riders recognize and savvier laser-focused the customer our ever. easier ends best. more and than more of

committed are to fun all. in that delivering We to ride Smartscooters also remain

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in believe future to the India's ecosystem. growth continue of We EV

strategy we are our market developing detailed in we engagement. the Additionally, pack factory battery of are India completion nearing for and

vast are Asia strong planned. and electromobility Castrol's partnership new both and and is on opportunities. To and developing technology remains enhancing innovative committed solution performance embracing our Together, collaboration supporting energy markets. advancing to business focused point, these are is vehicle seeing and this existing in international are in and electric new the and working as experience markets companies leveraging and We while Gogoro's with in Castrol Gogoro's X-wheel region, electric both for to expertise scooters, collaboration expansion ways large continuing Southeast goals address sustainability in leadership. The emerging solutions

do transformation. understanding are differently Colombia. I of to in currently addition, Korea, and leading South we presence forward. need what through to have a this we I'm Singapore, have And In we Gogoro where clear committed Nepal, Chile moving and a

entire future value strong team customers, back to deliver reestablishing to strategic for will and like it is financials. to who walk and our to management through hand partners, employees. I'd Our devoted Bruce, QX our investors a executing mission

Thanks, through starting with sales you financials, our in to QX Henry. I want walk Taiwan.

by be market our in accumulated We that were in QX XX,XXX $XX.X electric ended subscribers had for XX,XXX, from vehicle third we total Gogoro XX,XXX, XXXX. of in market registered approximately in delivered the units. in in expectations on for of Gogoro to QX XXXX have making occurred figures. Based vehicle vehicles, in while of these QX powered sales total on total expect between and XXXX registration as market will we anticipate in EV Taiwan fulfilling of new X% in those revenue from total on We're registrations during previous from we initiatives vehicles, share by the branded to XX% the vehicles, further savings for up service be the the business with Gogoro-based accumulate QX. battery fourth we registration to subscribers, backlog expect market we represent our of grown expenses, we powered QX in indicated full all cost cost which estimates, quarter the to X% controlling this Had We're the growth electric scooters have and sales focused at slightly vehicles XXXX. Network versus by And QX XX.X% total million X.X% was R&D XXX,XXX XXXX. that. We've both orders higher PBGN reflected a XXX,XXX continue in and XXXX vehicle Taiwan and the reductions and $X.X as quarter. The and XX% we up to totaling XX,XXX quarter. X-wheeler and of in million, X-wheel subscribers share-based of to in number and for quarters, grow estimate continues declined year we XXXX. overall implementing branded versus excluding spending were XX.X% Gogoro swapping quarter, continuing and XXX,XXX line segments XX.X%. Based effectively the vehicle of evaluate fourth quarter XXX,XXX than international a in G&A XXXX. This new efficiency operations electric And have QX sales all compensation. would subscribers. We decline between business been Taiwan X% That's third vehicle with X-wheel during share Network registrations current will end Gogoro in X-wheelers our up begin

up constant although associated in quarter, of of vehicles by hardware hardware larger sales revenues third manufacturing third and entry-level the Gogoro price chain vehicles up full capacity third the of third of currency from and last our increase basis. year-over-year reported rates revenue up average additional down will the X-wheelers a would generated year-over-year. financing foreign powered despite from subscriber companies. from our vehicle services. The were million, subscribers. Sales basis. customers X% high registration on was Total a upon of quarter, Taiwan robust total for and the payment quarter year-over-year from needs revenue over vehicles account the volume came models, first, battery down in orders revenue orders X.X% the government was higher same lower-priced coupled of million, quarter was maintenance rate X.X% for the withdraw approved in revenue related decrease of with $XX.X $X.X X,XXX service to registration year, X.X% of models; performing a selling backlog balancing by increase a models Gogoro before primarily multiple at combination third, orders same an new million. We with by our the in accessories, market X.X% about the service a orders These in and volume decrease did last year-over-year nor sales remained selling to year. year-over-year vehicle XXX,XXX, year; primarily the deliveries $XX.X end quarter down was up backlog have retention XX.X% Taiwan in for million, quarter revenues customers. The This base constant $XX.X other a quarter same in the backlog and sales in third the the parts resources. Battery swapping rate our the the been constant the average the and orders receiving in year with level last The or year-over-year year-over-year quarter currency delivery. demand revenue the we driven and compared right third XXX,XXX a any of swapping for a had revenue basis. due on second, other supply and For quarter customers' XX.X% subscribers third-party received from reflected year-over-year to backlog to subscribers and for quarter are provided end year-over-year constant down Had of for third not and for third have down the quarter data last to factors: recognize significant these proportion exceeded was exchange to compared customers our on same due for financing quarter currency at undelivered of decrease government the those of backlog X.X% the revenue

to reported would been Had delivered While rate growth year, registrations outstanding quarter were to of backlog we Gogoro's grew last XX.X%. X-wheelers year-over-year volume by sales up compared XX.X% Gogoro's electric-powered same be the total by of have sales orders, those volume X.X%. the

certain was pack million combination third year. X.X%, in while components last [ with and de-recognition product ] packs first, new in a factors; XXXX; last of in increase battery the third third, ourselves from higher margin models cost a in the $X.X capacity the Gogoro Every fourth, models; margin as growing quarter, in onetime Gogoro associated XX.X% from software initiatives; the OEM vehicle new the Network quarter by of year, was a with removed quarter and XX.X%, a non-IFRS second, updates. platform sales was excess new parts. Gogoro upgrade a The gross of same cost down always sales to associated reduced due heavily AST For with in an energy we volume; gross costs a company. lower-priced upgrade year, viewed contribution driven battery has by down gross margin warranty margin an expense for $X.X fifth, packs lower decrease in quarter GoStations, invest free same from million our from and battery primarily associated decline XX.X% our on updating deploying and

years, X an last the investment on Over basis. approximately been that $XXX annual has million

a the These continuing benefits to long several in undertaking our generate replacing on battery voluntary extending deployment our which packs, than upgrades lifetime as thesis. to we are battery and mobility first pack do more carrying upgrades take into benefits, validate pack these a economic run, second-life of we certain each to capacity battery multiple use in for including upgrades. of short-term expected expected provide its been create quarters extra are carry program have efficient Additionally, margin continue battery solidifying case upgrades reduction out our lifetime but last the existing capacity gross to of resources to packs, each complete, quarters, onetime increased few XXXX. These the out

and upgrades and life, to quantity safety. continue rugged, our designs which of profits impacted by to our margin to their circulation these and them will we'll of order of continue XXXX. In cash gross upgrade are packs will battery customers' improve be battery and enhance our continue XXXX a and long-lasting extend battery position, substantial to packs to already our improve to in gross to make cost more the experience during We expect we

million the decrease loss million increase outstanding change warrants with million million $X.X the the decrease consisting same a offset $X.X in The development in liabilities fair a in quarter third loss representing as $XX.X million share-based net the operating of of decrease net million due of cost decrease loss from was and $XX.X net of the last a the $X.X financial care a our and profit. The compensation, in research earn-out expenses in was $XX.X For of quarter, gross million and administrative customer primarily increase an same net partially year increase increase decrease of management of expenses million, in compared $XX.X last in a loss million $X.X decrease $X.X was an to in expenses $X.X favorable associated in and efforts shares, earn-in a to of and in shares result package. value a general quarter million year. a by and

of net million million non-IFRS $X.X For million the income. The decrease cost EBITDA million various million and last gross to offset initiatives a accounted compared in profit an for The in $X.X operating package a year. increase to due using the same and in excluding was $X.X compensation quarter $XX.X primarily quarter, year. associated from last in and care method representing a increase was loss customer increase $XX.X the the savings million $X equity decrease was by of expenses, million, third adjusted quarter of increase with a other partially in same investments share share-based increase $X.X

facilities operating invested We an $XX.X bank cash third and repaid generate available cash, through committed are battery infrastructure in to loans growth of million in sources we our in reducing we long-lived we us, in surety growth cash funding believe near-term third $X.X temporary and the set and meet assets. million remain swapping of objectives. $XXX.X million our operations to In our million, capital. investing million with and flow a the $X.X inflow cash the to operating credit working deposit as $XX.X continue aside business in additional tightening generated We business a sufficient to quarter, have quarter that the of

roll fourth improve our a the of and in detail over customer XX specific developing of others. We're will quarter extended the Gogoro's cost enhancement including variety when programs of the will upgrades, reducing solutions and reducing efficiency from vehicle risks specific experience next warranty production more lowering XXXX out savings These improving costs operations. standard battery and and discussed on improve components, of will the programs to we've a and to rebuild include warranty as initiatives overheads, stabilizes, capacity software upgrades and manufacturing be costs, We assessments, manufacturing resources, focus plans series completed optimize plans, overall in our the months, and and vehicle strategies which realign logistics products initiatives. and organization. and of warehousing and use inventory aim similar streamlining in management manage profitability These corporate other across

We XXXX. into initiatives expect quarter and the XXXX begin extend fourth in these to of

internal policies subsidies requirements continue operate and compliance strengthen over to that enhance controls in practices We countries chains local our of and the in. our all to with we development supply

than the level of previously We year X-wheeler our in to expectations are than overall revenue expected. The anticipated. lower market softer the performance is adjusting Taiwan for a

year the are XXXX, of in sales expecting adjust guidance delays revenue entry-level combination to million to for between and in With in international and million realizing pressure second generate anticipated XXXX. $XXX from $XXX we of ASP half models full the our

term initiatives. result expect materially accelerated in battery negatively gross be impacted upgrade and a of will ongoing margin the our We short as our

Thank Bruce, you, and Henry update. the for

action have number their collected questions, above to Difficulty] formulating questions possible implement are analysts. $X? back raise [Technical price I ask attendees will plans we one. What X stock from your Question As that

Thanks, [ Jenny ].

November. the reported at we the externally, have we Nasdaq early As October end have received of and Noncompliance appropriately Letter by responded

investigating. we above requirements. We plan of include regain are can do And take there's that compliance on the that trade ways consecutive fully we're currently Nasdaq. necessary to XX $X would committed with days. That to stock having listing remaining a number to our listed price for steps We

our XXX price through way back business confidence do have have stock frame future. time above We get best to the we think the in days so is to fundamentals $X. We and

stock above value the in in above confidence investors. management and then on devoted have then there price a go not, the deliver so it doing back to and We're inorganic team. We that naturally and $X. If strong And listed we our vision for a go to our remain executing take likelihood ensure does that to will partners is reestablishing steps we we Nasdaq. customers, to will have that trust $X

Thank Question of plan lack two. Is solid you, overseas so a revenue weakness, Bruce. from [Technical and to negative and forth? ventures number press there Difficulty] conversions sales

mass vision do a a gas-powered to operate to scooters in a into our to network is X-point and the Growing Jenny. requires back and business. we of core business level the swapping for get vision what how of belief was Thanks, execution-oriented for a created shift transition on enabling electric Yes. battery and our mature discipline We we and Smartscooters. This new smart plan. a have mindset, clear

First, establishing our business intentional disciplined can in revenue profitable requires we over time. management on focused are investments. to focus This future that and our of be with us cost growth, become on a

the experience customers we begins and Taiwan. delighting on Second, our in ends customer our of are laser-focused and with business rider our

prioritizing Third, expansion key markets. are we

line time, open Thank you, Henry. please for Q&A At session. operator, this the

questions Instructions] you [Operator any I the are phone back check lines moment. at on online. to no There for the questions to will hand

question online an take I'll now.

on double-digit Taiwan First program of years? the one over margin can from cost is, steady-state business next become with the basis XXXX, a savings operations couple

really it's performs well. business performs and expectations Taiwan the according healthy of a a business very view and very very, businesses. accumulating with grows subscribers couple our a Gogoro to different year-on-year manner that in battery Recall swapping as business, got in Network it our to that You've business, it

is And That business doing is business so healthy. well. that

programs, and on production as and cost we'll the gross in of cost a corporate overall of As number We'll and different then a working order BoM maintain partner brands. Henry healthy manufacturing ensure do on a we things. And hard to mentioned we working do in below unit different reduction, there's impact also margins, terms has Gogoro overhead overall we're on mentioned. sales we'll and very number a ] sales, margin reduction reduction, G&A [ that knock-on R&D, level, we're that do the In Taiwan savings. clearly of vehicle

as the quarter R&D mentioned, $X.X So just in third saved our our and cost between million alone, G&A savings. we

So on healthy our is focus a creating business.

a the lines. Our focus looking accurate right on along reflection business is those business satisfied QX, we'll non-IFRS basis to the of never in to we're gross now is our holistically. an at with, On continue think margin was is perform which XX.X%, we performing how but seek and

submitted. Battery Thank Are is question and have subscription battery they customers you, home company their allow plans online Bruce. the to capital-intensive there because assets. systems own storage? scooters battery any power have the I to buy to service their energy own and own a another that so can

embed infrastructure alone, business kids The Taiwan in capital-intensive. approximately the they we've commute, $XXX how how their in fabric our to point. to people school, great fully how Taiwan they take fact, spent a into It's million In is, play. of

XX,XXX And to fulfill all excess been has those journey the so really batteries needs up now. it until X,XXX of locations customers, with our a capital-intensive at required the and over racks

so we way are to partnerships in internationally, we've always want do a why and we asset-light that's said expand important. more As

where growth. model fund replicate Taiwan are the that sole markets, us be to we it for the us the So who we'll willing owner find help packs. those be large of In battery looking difficult to to will partners are

inverter to models. those someone could kinds really some In their allowing batteries, theory, actively new terms open batteries and an again, we've models. now, done things. business new to we're to own the use use always pursued. it's at of not devices business something their that of up but we've something to via that open home customers In we're until always of not It's power But

Bruce. you, Thank

We have a you update more online. Can an on give couple from India?

Sure.

year of now. the we throughout first of the India, in successfully couple pilot a half programs until and have up So run

informative. We're We number GoStations roll deal. a The We're have vehicle those to to been vehicles. partners data large price worked very with that in very of potential few great learning, things. a out closely different has from matters roll India and pilots out a learning obviously,

vehicles, we're there which Indian market. variety into working ensure are us help so grow that of some can potentially by And a to partners, made the

Our than anticipated. taken battery factory It is longer completion. pack nearing has

potential only And we're is And swapping continue with moment, a really terms the battery to vehicles. standpoint charging the there to continuing subsidies battery kind to battery and variety important. program of India versus battery also influence. swapping government having battery the of FAME-III electrification, provided of so a in At from find to but of recent And India's a in market. Not of partners policy there really released aspects program. not grow long to are lined gap charging, follow-on a we're is work its little swapping vehicles bit some too for up ago, to working subsidy that ways support government that electrification

as continue with the to work the something that's on. India, we'll in So X-wheel market largest Henry that world. said, government is the India

us. for market really what's that that the fast. the enter right so the is But seek find market government right a nuanced we that really important an to locations, way find we right policy And grow partners, to critical before it's we and

Thank you, Bruce.

or the this for queue will few So closing no At seems there a time, in to Henry the conference this further time, hand back to remarks. questions online. be I at

belief our do. of battery is scooters smart what to mass enabling for and Jenny. swapping electric core transition the to We're created our again gas-powered Thanks, vision Smartscooters. to This back network was

focus the is and battery simplifying on experience. leverage our swapping phase of riders, build business and our strength existing unparalleled of growth problem must control. Gogoro's solvable in delivering an taking have We and on to care strengths our next and

calling for support and begins for thanks delighting Gogoro your business into with today's call. of customers. Our ends Thank you our and

Thank you. call. for today's This you Thank conference concludes participating.

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