Gogoro(US:GGR)2023-08-10 13:49Financial Data and Key Metrics Changes - For Q2 2023, operating revenue was $87.2 million, down 3.8% year-over-year, but up 0.2% on a constant currency basis [33] - Gross margin increased to 15.2%, up from 14% in the same quarter last year, while non-IFRS gross margin rose to 16% from 15.5% [36] - Net loss decreased to $5.6 million, down from $121.1 million in the same quarter last year, primarily due to reduced listing expenses and operating costs [37] Business Line Data and Key Metrics Changes - Battery swapping service revenue for Q2 was $33.3 million, up 9.6% year-over-year, with total subscribers exceeding 552,000, a 14% increase from the previous year [35] - Sales of hardware and other revenue for the quarter were $53.9 million, down 10.6% year-over-year [33] - Vehicle sales volume decreased by 8.1% compared to the same quarter last year, largely due to low consumer confidence in Taiwan [34] Market Data and Key Metrics Changes - In Taiwan, total registered scooters in Q2 were 186,549, up 13.4% from Q2 2022, but electric scooter sales were down slightly [25] - The total number of registered electric scooters in Q2 was 20,118 units, down from 21,195 in the same quarter last year [25] - Taiwan represents approximately 95% of the company's revenue, indicating a strong correlation between Taiwan's sales performance and overall revenue [10] Company Strategy and Development Direction - The company is focused on expanding its retail presence in Taiwan, planning to increase store count from 91 to 100 by year-end [26] - Gogoro is investing in new vehicle launches and enhancing its product portfolio to improve competitiveness against internal combustion engine (ICE) vehicles [11] - The company is also pursuing international expansion, particularly in India and the Philippines, with significant investments planned [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed a conservative outlook for the second half of 2023 due to ongoing softness in the Taiwan market and updated revenue guidance to $340 million to $370 million [14][39] - The company remains optimistic about the long-term transition to electric vehicles, despite short-term challenges [7][13] - Management highlighted the importance of maintaining financial performance metrics while navigating competitive pressures [12] Other Important Information - Gogoro has committed to sustainability, achieving significant carbon emissions reductions and utilizing recyclable materials in its products [21][22] - The company is collaborating with local governments in Taiwan and India to promote electric vehicle adoption and infrastructure development [23] Q&A Session Summary Question: Can you shed light on the updated guidance for the full year and confidence in meeting it? - Management indicated that various factors, including vehicle launches and seasonal sales upticks, support confidence in meeting revised guidance [42] Question: Will new vehicles and improved battery swapping technology be deployed in India and other places? - Management confirmed that India is a critical market, with ongoing localization efforts and product improvements planned for the coming months [44][45] Question: What metrics are being tracked for the second half regarding margin and EBITDA? - Management emphasized focusing on internal cost structures and maintaining financial discipline while tracking growth in battery swapping service revenue [47][48] Question: When does the company expect to turn operating profits profitable? - Management stated that the goal is to establish a tight financial structure in Taiwan, which will facilitate quicker profitability as international business grows [52][54] Question: Can Gogoro sell batteries and energy storage solutions directly to customers? - Management acknowledged the potential for utilizing batteries post-mobility for energy storage solutions, indicating ongoing development in this area [63][66]