Gogoro Releases First Quarter 2024 Financial Results
Gogoro Inc. released its first quarter 2024 financial results, reporting revenue of $69.7 million, down 12.1% year-over-year. While battery swapping service revenue increased slightly, sales of hardware and other revenues declined. The introduction of Gogoro Pulse and JEGO generated strong interest, with over 5,000 backlog orders. Gross margin decreased, leading to a net loss of $13.1 million. Adjusted EBITDA was $9.0 million. The company plans to continue its expansion in Taiwan and India, with a positive outlook for 2024 revenue.
Revenue growth in battery swapping service and strong backlog orders for new vehicles demonstrate consumer interest and potential market growth.
Recognition by Fast Company Magazine as the most innovative company in Asia Pacific and 37th globally reflects Gogoro's vision and innovation, enhancing brand reputation.
Expansion plans in Taiwan and India, including a new battery factory and network deployment, indicate a commitment to growth and market presence.
Decline in total revenue and gross margin, along with a net loss, present financial challenges for the company in the first quarter of 2024.
Reduction in hardware and other revenues, as well as a decline in gross margin, highlight potential issues with sales performance and cost management.
Decrease in adjusted EBITDA compared to the same quarter last year signals a decrease in profitability and operational efficiency.
Insights
The decrease in Gogoro's total revenue by
Analyzing the market dynamics, Gogoro's report suggests an underlying trend of growth in its subscriber base for battery swapping services, which is important to the company's recurring revenue model. The 10.6% year-over-year increase in subscribers indicates strong customer adoption and retention. Additionally, the strategic investment in the new battery factory in India signals Gogoro's intent to expand its operational footprint and capitalize on emerging markets. The emphasis on cost management and efficiency improvements may resonate well with investors conscious of operational leverage and long-term profitability.
The reported decline in electric PTW registrations and challenges in fulfilling the backlog orders for JEGO vehicles highlight potential supply chain constraints. This could be indicative of broader systemic issues, such as component shortages or manufacturing inefficiencies. Investors may find the improvement in operational efficiency mentioned in the battery swapping services a positive note; however, the impact of supply chain factors on Gogoro's ability to meet demand and realize revenue from backlog orders is a concern that could have both short-term and long-term implications for the company's performance and stock valuation.
First Quarter 2024 Summary
- Revenue of
, down$69.7 million 12.1% year-over-year and down9.0% on a constant currency basis. - Battery swapping service revenue of
, up$32.5 million 0.6% year-over-year and up4.1% on a constant currency basis. - Introduced two new vehicles, namely Gogoro Pulse, our new flagship Smartscooter, and JEGO, our new entry-level Smartscooter that received more than 5,000 backlog orders in the first quarter and started shipping early in the second quarter. Revenue associated with these backlog orders for JEGO in the first quarter is estimated to be
which will not be recognized as revenue until vehicles are delivered.$8.6 million - Sales of hardware and others of
, down$37.2 million 20.8% year-over-year and down18.1% on a constant currency basis. - Gross margin of
6.4% , down from12.9% in the same quarter last year. Non-IFRS gross margin of13.3% , down0.4% year-over-year. - Net loss of
as compared to a net loss of$13.1 million in the same quarter last year.$40.6 million - Adjusted EBITDA of
, down from$9.0 million in the same quarter last year.$10.6 million
"This quarter we unveiled two new vehicles, Gogoro Pulse, our new flagship Smartscooter, and JEGO, our new well-equipped and affordable Smartscooter. JEGO is the result of our effort to design a mass-market vehicle that improves our vehicle economics. JEGO quickly generated strong interest from first-time electric vehicle buyers in
"We are strengthening our
First Quarter 2024 Financial Overview
Operating Revenues
For the first quarter, the total revenue was
- Battery swapping service revenue for the first quarter was
, up$32.5 million 0.6% year-over-year, and up4.1% year-over-year on a constant currency basis1. Total subscribers at the end of the first quarter exceeded 595,000, up10.6% from 538,000 subscribers at the end of the same quarter last year. We provided rebates to some customers in the first quarter of 2024 associated with a minor vehicle recall and battery upgrades. Such rebates totaled and were accounted for as contra revenue.$1.7 million
The year-over-year increase in battery swapping service revenue was primarily due to our larger subscriber base compared to the same quarter last year and the high retention rate of our subscribers. - Sales of hardware and other revenues for the quarter were
, down$37.2 million 20.8% year-over-year, and down18.1% year-over-year on a constant currency basis1. The JEGO backlog orders we received are not reflected in the vehicle registration data published by theTaiwan government for the first quarter, nor did Gogoro recognize any revenue for these vehicles, despite receiving full payment from customers or approved financing from third-party financing companies. Gogoro will account for the vehicle revenue upon delivery to customers. - The government-reported registration volume of powered two-wheelers ("PTW") in the
Taiwan market in the first quarter was down11.2% year-over-year. While registrations of electric PTW were reported to be down by39.0% compared to the same quarter last year, had we delivered the outstanding orders of JEGO, electric PTW registrations would have declined by7.5% instead, representing a smaller decline compared to the overall PTW market. Taiwan's two largest PTW manufacturers are publicly estimating that the total PTW market will shrink by14% from last year's 870,000 units to around 750,000 units in 2024. Gogoro continues to believe that the total volume of electric PTW inTaiwan will see growth in 2024 as a result of the introduction of our new vehicle models, and the ongoing consumer transition from traditional internal combustion engine vehicles to electric PTW.
Gross Margin
For the first quarter, gross margin was
We are carrying out one-time, voluntary upgrades on certain battery packs which are expected to take several quarters to complete. These upgrades provide multiple benefits — reduction of capital expenditures on replacing battery packs, increasing lifetime capacity of each battery pack (including extending its first mobility use-case useful life) and solidifying the extra lifetime capacity of each battery pack to validate our second-life thesis. These upgrades are expected to create economic benefits in the long run, but do come at a short-term reduction in our gross margin as we carry out the upgrades. We expect our IFRS gross margin will continue to be impacted during our upgrades planned in 2024 and 2025. The upgrades will impact both our cash position and profit. We will only upgrade battery packs in instances where the value created over time exceeds the cost of the upgrade.
Net Loss
For the first quarter, net loss was
Adjusted EBITDA
For the first quarter, adjusted EBITDA1 was
Liquidity
With a
_________________ | |
1 | This is a non-IFRS measure, see Use of Non-IFRS Financial Measures for a description of the non-IFRS measures and Reconciliation of IFRS Financial Metrics to Non-IFRS for a reconciliation of the Company's non-IFRS financial measures to their most directly comparable IFRS measures. |
2024 Guidance
For the full year of 2024, we continue to expect to generate revenue of
Conference Call Information
Gogoro's management team will hold an earnings Webcast on May 9th, 2024, at 8:00 a.m. Eastern Time to discuss the Company's first quarter 2024 results of operations and outlook.
Investors may access the webcast, supplemental financial information and investor presentation at Gogoro's investor relations website (https://investor.gogoro.com) under the "Events" section. A replay of the investor presentation and the earnings call script will be available 24 hours after the conclusion of the webcast and archived for one year.
About Gogoro
Founded in 2011 to rethink urban energy and inspire the world to move through cities in smarter and more sustainable ways, Gogoro leverages the power of innovation to change the way urban energy is distributed and consumed. Recognized and awarded by Frost & Sullivan as the "2023 Global Company of the Year for battery swapping for electric two-wheel vehicles" and MIT Technology Review as one of "15 Climate Tech Companies to Watch" in 2023, Gogoro's battery swapping and vehicle platforms offer a smart, proven, and sustainable long-term ecosystem for delivering a new approach to urban mobility. Gogoro has quickly become an innovation leader in vehicle design and electric propulsion, smart battery design, battery swapping, and advanced cloud services that utilize artificial intelligence to manage battery availability and safety. The challenge is massive, but the opportunity to disrupt the status quo, establish new standards, and achieve new levels of sustainable transportation growth in densely populated cities is even greater. For more information, visit https://www.gogoro.com/news and follow Gogoro on Twitter: @wearegogoro.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Gogoro's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Gogoro's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this communication include, but are not limited to, statements in the section entitled, "2024 Guidance," such as estimates regarding revenue and Gogoro's revenue generated from the
Gogoro's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to macroeconomic factors including inflation and consumer confidence, risks related to the
Condensed Consolidated Financial Statements
The condensed consolidated financial statements are unaudited and have been prepared in accordance with the International Financial Reporting Standards (collectively, "IFRS") issued by the International Accounting Standards Board and regulations of the
Backlog Orders
Backlog orders are not recognized as revenue in our Condensed Consolidated Statement of Comprehensive Loss until we deliver a vehicle to the buyer. The backlog orders are recorded as contract liabilities and the portion associated with financing receivable would be net against account receivables in our Condensed Consolidated Balance Sheet. Backlog value is estimated based on manufacturer's suggested retail price net off associated sales incentives.
Use of Non-IFRS Financial Measures
This press release and accompanying tables contain certain non-IFRS financial measures including foreign exchange effect on operating revenues, non-IFRS gross profit, non-IFRS gross margin, Non-IFRS Net Loss, EBITDA and Adjusted EBITDA.
Foreign exchange ("FX") effect on operating revenues. We compare the dollar amount and the percent change in the operating revenues from the current period to the same period last year using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying revenues performed excluding the effect of foreign currency rate fluctuations. To present this information, current period operating revenues for entities reporting in currencies other than USD are converted into USD at the average exchange rates from the equivalent periods last year.
Non-IFRS Gross Profit and Gross Margin. Gogoro defines non-IFRS gross profit and gross margin as gross profit and gross margin excluding share-based compensation, battery upgrade initiatives and battery swapping service rebate.
Share-based Compensation. Share-based compensation consists of non-cash charges related to the fair value of restricted stock units awarded to employees and stock options granted to certain directors, executives, employees and others providing similar services. We believe that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact of share-based compensation on our operating results.
Non-IFRS Net Loss. Gogoro defines non-IFRS net loss as net loss excluding share-based compensation, the change in fair value of financial liabilities including revaluation of change in fair value of earnout, earn-in and warrants associated with the merger of Poema, battery upgrade initiatives, and battery swapping service rebate. These amounts do not reflect the impact of any related tax effects.
EBITDA. Gogoro defines EBITDA as net loss excluding interest expense, net, provision for income tax, depreciation, and amortization. These amounts do not reflect the impact of any related tax effects.
Adjusted EBITDA. Gogoro defines Adjusted EBITDA as EBITDA excluding share-based compensation, the change in fair value of financial liabilities including revaluation of change in fair value of earnout, earn-in and warrants associated with the merger of Poema, battery upgrade initiatives, and battery swapping service rebate. These amounts do not reflect the impact of any related tax effects.
Battery Upgrade Initiatives. As we perform certain voluntary upgrades to our battery packs, this charge represents the (i) derecognition expense on components removed from the battery pack, which we do not expect to generate any future benefits from its disposal and (ii) battery pack retrieval and other costs. We will only upgrade battery packs in instances where the value created exceeds the cost of the upgrade. The program will improve batteries' capacity and extend the remaining useful life of certain battery packs. The derecognition expense and the retrieval and other costs are recorded under Cost of Revenues in the Condensed Consolidated Statements of Comprehensive Loss. We exclude such expenditures for purposes of calculating certain non-IFRS measures because these charges do not reflect how management evaluates our operating performance. The adjustments facilitate a useful evaluation of our operating performance and comparisons to past operating results and provide investors with additional means to evaluate our profitability trends. We expect the derecognition expense and retrieval and other costs to recur in future periods as incurred during the implementation phase of the battery upgrade program.
Battery Swapping Service Rebate. We voluntarily offered one-time subscription fee discounts to certain subscribers of Gogoro Network who experienced unusual and infrequent service inconveniences associated with a minor voluntary vehicle recall and battery upgrade, and such battery swapping service rebates are recorded as contra-revenue. We have excluded the impacts of such rebates from our non-IFRS metrics to allow investors to better understand the underlying operation results of the business and to facilitate comparison of current financial results with historical financial results and our peer group companies financial results.
These non-IFRS financial measures exclude share-based compensation, interest expense, income tax, depreciation and amortization, change in fair value of financial liabilities associated with outstanding earnout shares, earn-in shares and warrants associated with the merger of Poema, battery upgrade initiative and battery swapping service rebate. The Company uses these non-IFRS financial measures internally in analyzing its financial results and believes that these non-IFRS financial measures are useful to investors as an additional tool to evaluate ongoing operating results and trends. In addition, these measures are the primary indicators management uses as a basis for its planning and forecasting for future periods.
Non-IFRS financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS financial measures. Non-IFRS financial measures are subject to limitations and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with IFRS. Non-IFRS financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. A description of these non-IFRS financial measures has been provided above and a reconciliation of the Company's non-IFRS financial measures to their most directly comparable IFRS measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Gogoro Media Contact: | Gogoro Investor Contact: | |
Jason Gordon, Gogoro | ir@gogoro.com | |
+1 (206) 778-7245 | ||
jason.gordon@gogoro.com |
GOGORO INC | |||
Condensed Consolidated Balance Sheet | |||
(unaudited) | |||
(in thousands of | |||
March 31, | December 31, | ||
2024 | 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 132,514 | $ 173,885 | |
Trade receivables | 17,321 | 17,135 | |
Inventories2 | 56,462 | 53,109 | |
Other assets, current | 23,366 | 22,009 | |
Total current assets | 229,663 | 266,138 | |
Property, plant and equipment2 | 492,631 | 501,876 | |
Investments accounted for using equity method | 16,996 | 17,741 | |
Right-of-use assets | 28,391 | 30,412 | |
Other assets, non-current | 12,198 | 18,063 | |
Total assets | $ 779,879 | $ 834,230 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Borrowings, current | $ 83,957 | $ 75,590 | |
Financial liabilities at fair value through profit or loss | 17,634 | 30,832 | |
Notes and trade payables | 37,585 | 38,117 | |
Contract liabilities | 14,943 | 11,606 | |
Lease liabilities, current | 10,331 | 11,296 | |
Provisions, current | 3,428 | 4,174 | |
Other liabilities, current | 35,249 | 42,439 | |
Total current liabilities | 203,127 | 214,054 | |
Borrowings, non-current | 311,640 | 334,581 | |
Lease liabilities, non-current | 17,598 | 18,842 | |
Provisions, non-current | 2,216 | 2,332 | |
Other liabilities, non-current | 14,679 | 15,734 | |
Total liabilities | 549,260 | 585,543 | |
Total equity | 230,619 | 248,687 | |
Total liabilities and equity | $ 779,879 | $ 834,230 | |
March 31, | December 31, | ||
2024 | 2023 | ||
Inventories: | |||
Raw materials | $ 32,864 | $ 33,136 | |
Semi-finished goods | 2,542 | 3,559 | |
Merchandise | 21,056 | 16,414 | |
Total inventories | $ 56,462 | $ 53,109 |
____________________________________ | |
2 | At March 31, 2024 and December 31, 2023, the company classified |
GOGORO INC | |||
Condensed Consolidated Statements of Comprehensive Loss | |||
(unaudited) | |||
(in thousands of | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Operating revenues | $ 69,711 | $ 79,319 | |
Cost of revenues | 65,238 | 69,058 | |
Gross profit | 4,473 | 10,261 | |
Operating expenses: | |||
Sales and marketing | 10,581 | 11,843 | |
General and administrative | 9,369 | 11,099 | |
Research and development | 9,366 | 9,553 | |
Other operating expenses | 454 | — | |
Total operating expenses | 29,770 | 32,495 | |
Loss from operations | (25,297) | (22,234) | |
Non-operating income (expenses): | |||
Interest expense, net | (2,728) | (1,897) | |
Other income, net | 2,416 | 2,096 | |
Change in fair value of financial liabilities | 13,198 | (18,513) | |
Share of loss of investments accounted for using equity method | (716) | (72) | |
Total non-operating incomes (expenses) | 12,170 | (18,386) | |
Net loss | (13,127) | (40,620) | |
Other comprehensive (loss) income: | |||
Exchange differences on translation | (8,319) | 2,172 | |
Total comprehensive loss | $ (21,446) | $ (38,448) | |
Basic and diluted net loss per share | $ (0.06) | $ (0.17) | |
Shares used in computing basic and diluted net loss per share | 235,942 | 232,190 | |
Three Months Ended March 31, | |||
Operating revenues: | 2024 | 2023 | |
Sales of hardware and others | $ 37,258 | $ 47,056 | |
Battery swapping service | 32,453 | 32,263 | |
Operating revenues | $ 69,711 | $ 79,319 | |
Three Months Ended March 31, | |||
Share-based compensation: | 2024 | 2023 | |
Cost of revenues | $ 282 | $ 610 | |
Sales and marketing | 449 | 842 | |
General and administrative | 1,673 | 2,777 | |
Research and development | 974 | 1,937 | |
Total | $ 3,378 | $ 6,166 |
GOGORO INC | |||
Condensed Consolidated Statements of Cash Flows | |||
(unaudited) | |||
(in thousands of | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Cash flows from operating activities | |||
Net loss | $ (13,127) | $ (40,620) | |
Adjustments for: | |||
Depreciation and amortization | 24,680 | 24,675 | |
Expected credit loss | 193 | 327 | |
Share of loss of investments accounted for using equity method | 716 | 72 | |
Change in fair value of financial liabilities | (13,198) | 18,513 | |
Interest expense, net | 2,728 | 1,897 | |
Share-based compensation | 3,378 | 6,166 | |
Loss on disposal of property and equipment, net | 448 | 950 | |
Write-down of inventories | 1,619 | 1,295 | |
Reversal of provisions for product warranty | 9 | — | |
Changes in operating assets and liabilities: | |||
Trade receivables | (379) | (4,595) | |
Inventories | 456 | (18,243) | |
Other current assets | 1,932 | 941 | |
Notes and trade payables | (532) | 569 | |
Contract liabilities | 3,337 | 4,060 | |
Other liabilities | (7,651) | (7,903) | |
Provisions for product warranty | (944) | (950) | |
Cash generated from (used in) operations | 3,665 | (12,846) | |
Interest expense and tax paid, net | (2,813) | (1,889) | |
Net cash generated from (used in) operating activities | 852 | (14,735) | |
Cash flows from investing activities | |||
Payments for property, plant and equipment, net | (34,419) | (17,757) | |
Increase in refundable deposits | (220) | — | |
Payments for acquisitions of investments accounted for using equity method | — | (16,351) | |
Payments of intangible assets, net | (52) | (42) | |
Increase in other financial assets | (83) | (407) | |
Net cash used in investing activities | (34,774) | (34,557) | |
Cash flows from financing activities | |||
Proceeds from borrowings | 10,852 | 12,436 | |
Repayments of borrowings | (8,678) | (30,093) | |
Proceed from issuance of shares | — | 22 | |
Guarantee deposits refund | (75) | (18) | |
Repayment of the principal portion of lease liabilities | (3,147) | (3,146) | |
Net cash used in financing activities | (1,048) | (20,799) | |
Effect of exchange rate changes on cash and cash equivalents | (6,401) | 1,073 | |
Net decrease in cash and cash equivalents | (41,371) | (69,018) | |
Cash and cash equivalents at the beginning of the period | 173,885 | 236,100 | |
Cash and cash equivalents at the end of the period | $ 132,514 | $ 167,082 |
GOGORO INC | |||||||||
Condensed Consolidated Statements of Changes in Equity | |||||||||
(unaudited) | |||||||||
(in thousands of | |||||||||
Ordinary | Capital | Accumulated | Exchange | Total Equity | |||||
Balance as of December 31, 2023 | $ 24 | $ 669,912 | $ (425,978) | $ 4,729 | $ 248,687 | ||||
Net loss for the three months ended March 31, 2024 | — | — | (13,127) | — | (13,127) | ||||
Other comprehensive loss for the three months ended March 31, 2024 | — | — | (8,319) | (8,319) | |||||
Shared-based compensation | — | 3,378 | — | — | 3,378 | ||||
Balance as of March 31, 2024 | $ 24 | $ 673,290 | $ (439,105) | $ (3,590) | $ 230,619 |
GOGORO INC | |||||||||||
Reconciliation of IFRS Financial Metrics to Non-IFRS | |||||||||||
(unaudited) | |||||||||||
(in thousands of | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | IFRS | Revenue | ||||||||
Operating revenues: | IFRS revenue | FX effect | Revenue | IFRS revenue | |||||||
Sales of hardware and others | $ 37,258 | $ 1,283 | $ 38,541 | $ 47,056 | (20.8) % | (18.1) % | |||||
Battery swapping service | 32,453 | 1,148 | 33,601 | 32,263 | 0.6 % | 4.1 % | |||||
Total | $ 69,711 | $ 2,431 | $ 72,142 | $ 79,319 | (12.1) % | (9.0) % | |||||
Three Months Ended March 31, | |||||
2024 | 2023 | ||||
Gross profit and gross margin | $ 4,473 | 6.4 % | $ 10,261 | 12.9 % | |
Share-based compensation | 282 | 610 | |||
Battery upgrade initiatives | 2,834 | — | |||
Battery swapping service rebate | 1,661 | — | |||
Non-IFRS gross profit and gross margin | $ 9,250 | 13.3 % | $ 10,871 | 13.7 % | |
Three Months Ended March 31, | |||||
2024 | 2023 | ||||
Net loss | $ (13,127) | $ (40,620) | |||
Share-based compensation | 3,378 | 6,166 | |||
Change in fair value of financial liabilities | (13,198) | 18,513 | |||
Battery upgrade initiatives | 2,834 | — | |||
Battery swapping service rebate | 1,661 | — | |||
Non-IFRS net loss | $ (18,452) | $ (15,941) | |||
Three Months Ended March 31, | |||||
2024 | 2023 | ||||
Net loss | $ (13,127) | $ (40,620) | |||
Interest expense, net | 2,728 | 1,897 | |||
Depreciation and amortization | 24,680 | 24,675 | |||
EBITDA | 14,281 | (14,048) | |||
Share-based compensation | 3,378 | 6,166 | |||
Change in fair value of financial liabilities | (13,198) | 18,513 | |||
Battery upgrade initiatives | 2,834 | — | |||
Battery swapping service rebate | 1,661 | — | |||
Adjusted EBITDA | $ 8,956 | $ 10,631 |
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SOURCE Gogoro Inc
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