Gogoro (GGR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $86.9 million, down 5.3% year-over-year, with a 5.4% gross margin and net loss of $18.2 million; adjusted EBITDA increased to $14.1 million.

• Battery swapping service revenue rose 3.8% year-over-year, while hardware sales declined 10.6%.

• Over 626,000 accumulated subscribers in Taiwan, with market share rising to 7.2% and 215,211 total registered scooters.

• Leadership changes included CEO resignation, interim CEO appointment, and a renewed focus on profitability and business fundamentals.

• Company is committed to NASDAQ compliance and enhancing customer experience through battery upgrades and benefit packages.

Significant events and developments

• Received NASDAQ non-compliance notice for share price below $1, with 180 days to regain compliance.

• CEO Horace Luke resigned; Henry Chiang appointed as Interim CEO.

• Taiwan government inquiry found insufficient evidence of violation regarding imported parts.

• One-time customer benefit package of $3.1 million and voluntary battery pack upgrades impacted short-term margins.

• Two share subscription agreements: $50 million from Gold Sino and $25 million from Castrol, with associated warrants and put options.

Financial highlights

• Q3 2024 total revenue was $86.9 million, down 5.3% year-over-year and 3.4% on a constant currency basis.

• Battery swapping service revenue was $34.9 million, up 3.8% year-over-year; hardware and other revenues were $52.0 million, down 10.6%.

• Gross margin was 5.4%, down from 18.3% in Q3 2023; non-IFRS gross margin was 14.7%, down from 19.2%.

• Net loss was $18.2 million, up from $3.1 million in Q3 2023; adjusted EBITDA was $14.1 million, up from $13.1 million.

• Operating cash inflow of $8.5 million; $119.2 million in cash and $55.1 million as a surety deposit.