Gogoro Inc. Q1 FY2024 earnings call

• Gogoro was named the most innovative company in the Asia-Pacific and 37th most innovative in the world. - Announced a non-binding MOU with Sumitomo Corporation and Sumitomo Mitsui Finance and Leasing Company for international expansion. - Launched JEGO and Pulse vehicles; JEGO had over 5,000 backlog orders with ~$8.6 million in revenue. - Introduced a new battery swapping subscription plan. - Added 39 Gogoro quick service centers in Q1. - Collaborated with TSMC on 3 mobility initiatives in Hsinchu. - Go Share continues to grow in Taiwan. - Worked with Indian OEMs to enable vehicles using Gogoro technology and battery swapping solution. - Unveiled Gogoro battery swapping services and CrossOver GX250 in Nepal. - Pulse Smartscooter launched in the Philippines.

Total revenue for Q1 was $69.7 million, down 12.1% year-over-year. Battery swapping service revenue was $32.5 million, up 0.6% year-over-year. Hardware and other revenues were $37.2 million, down 20.8% year-over-year. JEGO had over 5,000 backlog orders with approximately $8.6 million in revenue. Subscribers at the end of Q1 exceeded 595,000, up 10.6% from the same quarter last year. Gogoro network vehicles registration figures were 7,321 and 8,240 respectively, with power by Gogoro network vehicles representing 80.7% of total EV sales in Q1.

• Full-year 2024 revenue expected between $385 million and $420 million. - Anticipate faster growth in battery swapping subscription business in Q2 with JEGO back orders. - Expect to see India OEM PBGN vehicles in the second half of 2024.

• Supplier capacity constraints delaying JEGO vehicle deliveries. - External market conditions challenging margins. - Challenges in establishing partnerships for international expansion in India and other markets.

Q: Can you provide an update on the latest progress in India?

A: Gogoro is focusing on getting the battery factory ready in Pune (expecting to ship battery packs beginning in Q3), enabling Indian OEMs to develop vehicles using Gogoro technologies, and establishing strong partnerships. The battery factory is nearly complete, and they're working with local OEMs and partners like HPCL and Sumitomo.

Q: Can you provide some color and implications on margin for this year?

A: External market conditions are challenging. Gogoro is focused on cost controls, measured spending, and balancing savings with investments. They expect to focus on margin improvement via cost controls and increased volumes going forward.

Q: Since Thai Power has started to increase the electricity price, would you have any plans to raise the battery swap service fees?

A: Gogoro is analyzing whether to pass on electricity cost increases to consumers. They're considering slight price increases with rebates but haven't finalized plans. The electricity cost is a small part of their overall cost structure.

Q: Does Gogoro plan to enter the market of selling smaller 10-battery slot swapping stations to help create smart grids?

A: Gogoro sees opportunities in energy storage and power backup. With existing batteries in circulation, they're exploring using retired batteries for applications like industrial-grade UPS, but no immediate plans to sell small swapping stations.

Q: Does Gogoro have any plans to open up your battery ecosystem so third-party manufacturers can create new vehicle applications?

A: Absolutely. Gogoro's battery can power various applications like drones, forklifts, etc. They welcome third-party manufacturers to use their battery and components, as seen in collaborations like with M Mobility at the Tokyo Auto Show.