Gogoro Releases Third Quarter 2024 Financial Results

Core Insights - Gogoro Inc. reported a total revenue of $86.9 million for Q3 2024, reflecting a 5.3% decrease year-over-year and a 3.4% decrease on a constant currency basis [2][4] - The company experienced a net loss of$ 18.2 million, significantly higher than the net loss of $3.1 million in the same quarter last year [12] - Gogoro's battery swapping service revenue increased by 3.8% year-over-year to$ 34.9 million, driven by a growing subscriber base [5][12] Financial Performance - Total revenue for Q3 2024 was $86.9 million, down from$ 91.8 million in Q3 2023, with hardware sales contributing $52.0 million, a decline of 10.6% year-over-year [2][6] - Gross margin fell to 5.4%, down from 18.3% in the same quarter last year, primarily due to increased costs associated with battery upgrades and lower average selling prices [9][12] - Adjusted EBITDA for Q3 2024 was$ 14.1 million, an increase from $13.1 million in the same quarter last year, attributed to reduced operating expenses [13] Subscriber Growth - Gogoro ended Q3 2024 with over 625,000 subscribers, a 9.6% increase from 570,000 subscribers in the same quarter last year [5][12] - The increase in battery swapping service revenue was largely due to the larger subscriber base and high retention rates [5] Backlog Orders - The company reported approximately 3,800 backlog orders for vehicles in Q3 2024, which will not be recognized as revenue until delivery [2][4] - Had these backlog orders been delivered, Gogoro's year-over-year sales volume growth rate would have been 26.5% [8] Strategic Initiatives - Gogoro is focusing on enhancing customer experience through various programs, including battery upgrades and extended warranty programs [15] - The company is developing cost reduction and efficiency plans aimed at improving profitability and operational efficiency, expected to begin in Q4 2024 [16] Market Challenges - Gogoro faced challenges including a Nasdaq Listing Compliance Notice, the resignation of its CEO, and a government inquiry regarding the use of imported parts [3][12] - The overall performance of the two-wheeler market in Taiwan was softer than anticipated, prompting a revision of revenue expectations for 2024 to between$ 305 million and $315 million [18]