Gogoro(GGR)2024-11-14 15:05Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 18.2 million, an increase of 3.1 million in the same quarter last year [35] - Gross margin was 5.4%, down from 18.3% in the same quarter last year, while non-IFRS gross margin was 14.7%, down from 19.2% [31] Business Line Data and Key Metrics Changes - Battery swapping service revenue for Q3 was 52 million, down 10.6% year-over-year [28] Market Data and Key Metrics Changes - Total number of registered electric scooters in Q3 in Taiwan was 23,837 vehicles, up 14.5% from 20,815 in Q3 2023 [23] - Gogoro branded vehicle registrations were 15,551, up 1.6% from Q3 2023, while powered by the Gogoro network vehicle registrations were 16,444, making Gogoro based vehicles 69% of total electric two-wheeled vehicle sales in Q3 2024 [23] - The overall market for two-wheelers in Taiwan declined by 11.4% versus Q3 of 2023 [23] Company Strategy and Development Direction - The company is focused on establishing a profitable business over time, emphasizing revenue growth, cost management, and intentional future investments [14] - Gogoro aims to enhance customer experience and prioritize key expansion markets, particularly in India and Southeast Asia [18][19] - The company is committed to reestablishing a strong strategic mission and executing plans to deliver future value for customers, partners, investors, and employees [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 presented unexpected challenges but also an opportunity to reevaluate business strengths and priorities [9] - The company expects to generate between 315 million in revenue for 2024, adjusting guidance due to a softer two-wheeler market in Taiwan [41] - Management is focused on improving gross margins and operational efficiency through various cost-saving initiatives [40] Other Important Information - The company received a NASDAQ Listing Compliance Notice and is committed to regaining compliance within 180 days [7] - Gogoro is undergoing a government inquiry regarding the potential use of imported parts in vehicle models, which the company is addressing [10][12] Q&A Session Summary Question: What possible action plans will you implement to raise your stock price back above $1? - The company plans to take necessary steps to regain compliance with NASDAQ listing requirements, focusing on business fundamentals to naturally raise the stock price [42][43] Question: Is there a solid plan to address negative press and sales weakness? - Management emphasized a shift in mindset and a clear vision to focus on profitability, customer experience, and prioritizing key expansion markets [44] Question: Can Taiwan operations become a double-digit margin business over the next couple of years? - The company is working on various cost reduction programs and believes the Gogoro network business is healthy, but vehicle sales reductions impact overall margins [46][48] Question: Are there any plans to allow customers to own and buy their own battery system? - The company is open to new business models but has not actively pursued allowing customers to own batteries [49][51] Question: Can you give an update on India? - The company is running pilot programs in India and is working closely with potential partners to roll out Go stations and vehicles, while also engaging with the government on subsidy programs [52][53]