Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gogoro Inc (GGR, Financial) achieved a significant milestone in Q4 2024, with revenue from the battery swapping business surpassing vehicle sales for the first time.
- The company has a strong subscriber base, ending 2024 with nearly 640,000 subscribers, up from 587,000 the previous year.
- Gogoro Inc (GGR) maintained a 72% market share in electric scooters, despite a contraction in the overall two-wheel market.
- The company received prestigious global accolades in 2024, including recognition as Asia Pacific's most innovative company by Fast Company.
- Gogoro Inc (GGR) is expanding its international presence, launching services in Colombia, Singapore, and Nepal in 2024, with plans for further expansion.
Negative Points
- Gogoro Inc (GGR) reported a net loss of $123.2 million for 2024, an increase from the previous year's loss of $76 million.
- The company's gross margin declined significantly, with a full-year gross margin of 2.4%, down from 14.6% in 2023.
- Sales of hardware and other revenue decreased by 37% year over year in Q4 2024.
- International markets are not growing at the anticipated pace, with Taiwan still accounting for over 95% of revenue.
- The company faces challenges in maintaining its Nasdaq listing, with a deadline of April 28 to regain compliance.
Q & A Highlights
Q: Can you provide additional color on your expectation of the energy business to break even in 2026?
A: Gogoro has always viewed itself as an energy company, and we are now even more focused on this part of the business. We have accumulated approximately 640,000 subscribers with high retention rates. Based on this, we can predict our future battery swapping revenue accurately. Provided we control costs as planned, we will break even on a non-IFRS basis in 2026.
Q: What action plans can you implement to raise your stock price back above $1 to avoid delisting, and when does the 180-day grace period end?
A: Stock price reflects the market's perspective on our strategy and earning potential. We hope today's discussion has shed light on our plans to accelerate profitability and tighten our cost structure. We aim to remain listed on Nasdaq, with the deadline to regain compliance being April 28. We are exploring various actions to ensure compliance.
Q: What are your growth assumptions to achieve profitability targets for energy and vehicle businesses?
A: We are using conservative growth assumptions, particularly for vehicle sales in Taiwan. Our revenue guidance reflects limited growth from vehicles, with targets roughly in line with last year's sales. We are confident in hitting the 2026 energy break-even, 2027 cash flow, and 2028 vehicle business break-even targets.
Q: How should we size the market potential for energy storage and international expansion as new revenue sources?
A: Energy storage is a significant opportunity, especially in Taiwan and Southeast Asia, with renewable energy policies driving demand. We have pilot projects and expect to capitalize on our battery data and AI capabilities. Internationally, success requires policy alignment, partnerships, and patience. We continue to target Southeast Asia but expect 95% of revenue from Taiwan this year.
Q: Does Gogoro plan on releasing battery packs for home energy storage to consumers?
A: We see strong growth in home energy storage in Taiwan. As an energy service company, we focus on subscription models rather than outright sales. However, we are open to considering different business models while maintaining our service-oriented approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
