Gogoro Inc. Q2 FY2024 earnings call

• Announcements of investments: Announced $100 million in two substantial investments in Q2 with $75 million cash received, entered into an MOU with Sumitomo Corp. and SMFL for asset - light international expansion, Gold Sino made a $50 million equity investment, and Castrol made a $50 million investment commitment. - Taiwan market performance: JEGO Smartscooter was a standout success with high sales volume but lower average selling price. Pulse Smartscooter received positive coverage. As of the end of Q2, there were 103 retail stores, 242 Gogoro quick service stores and 421 authorized repair shops in Taiwan. The Gogoro network had over 608,000 accumulated subscribers, $34.7 million in battery swapping service revenue, over 2,570 Go Station locations, over 1.4 million battery packs in circulation, etc. - International market expansion: In South Korea, over 200 active Go stations in 15 cities; in Colombia, launched battery swapping services in Bogota with Terpel and introduced Gogoro Smartscooters; in Singapore, approved for commercial operational launch after sandbox testing; in the Philippines, 11 Go stations operational with progress on zero import tariff approval; in India, deployed first 20 Go stations with HPCL, launched pilot with Rapido, collaborated with 5 local OEMs and commenced vehicle testing.

In the second quarter, total revenue was $80.9 million, down 7.2% year - over - year and 2.4% year - over - year on a constant currency basis. Battery swapping service revenue for the second quarter was $34.7 million, up 4% year - over - year and 9.5% year - over - year on a constant currency basis. Sales of hardware and other revenues for the second quarter were $46.3 million, down 14.1% year - over - year and 9.8% year - over - year on a constant currency basis. In Taiwan, the total registered electric scooters in Q2 2024 was 23,660 units, up 17.6% from Q2 2023. Gogoro branded vehicle registration figures were 15,646 units, up 10.8% from Q2 2023, while powered by the Gogoro network (PBGN) vehicles registration figures were 16,685 units, up 1.7% over the same period, representing 70.5% of total electric vehicle sales in Q2.

• 2024 full - year revenue guidance: Adjusted to between $320 million to $345 million, with more than 95% of such revenue expected to be Taiwan - based. - India market: Most of the forecast revenue for 2024 is projected to push out to 2025 due to delays in subsidy policy finalization. - Taiwan market: Anticipates still 95% of revenue to be generated in Taiwan, expects some additional momentum in the second half of the year but with ASP pressure due to the success of JEGO model.

• Taiwan market demand: The overall two - wheeler market in Taiwan is softer than anticipated, impacting sales figures. - International market expansion: Each international market is unique and takes time to develop, with delays in India's subsidy policy for battery swapping vehicles affecting revenue plans. - Battery upgrades: Ongoing battery pack upgrades have a short - term impact on gross margin as they come at a cost while creating long - term economic benefits.

Q: What is your plan to capture additional market share and volume in second half of 2024 in Taiwan? What about international markets?

A: In Taiwan, planning to deliver all backlog vehicles by the end of the year, launched marketing campaigns for JEGO and will engage in summer and back - to - school promotions. In India, much progress depends on finalization of India's Fame 3 subsidy plan and inclusion of battery swapping. Other international markets are performing approximately as forecasted with some additional momentum in the second half as new services are launched, and still expect approximately 95% of revenue to be generated in Taiwan.

Q: From the recent capital raise from Gold Sino and Castrol, could you recap your capital structure and your attention on use of the proceeds?

A: Received $50 million cash injection from Gold Sino and initial $25 million of potential $50 million investment from Castrol through issuance of ordinary shares. These funds are used to fuel ongoing commitment to expanded battery swapping infrastructure and support growth initiatives in Taiwan and internationally, with a strong cash balance of $196 million at the end of Q2 and access to additional credit facilities.

Q: What's the Taiwan market unit sales in the second quarter 2024?

A: In Q2, the total registered electric scooters in Taiwan was 23,660 units. The Gogoro branded vehicle registration was 15,646 units and the powered by the Gogoro network volumes was 16,685 units Q: How should we think about the commercial opportunity in Singapore in the next few years?

A: Singapore is a great opportunity to showcase the smart system in a leading city in Southeast Asia. Focus on B2B with partners like Foodpanda, and work with local giants like Cycle & Carriage and Shell, aiming to demonstrate what is possible in Singapore as a leadership country in the region.

Q: If the Indian government doesn't subsidize battery swapping this year, would Gogoro change business strategy and allow customers to own and charge their batteries instead?

A: Gogoro believes in the battery swapping system but will look at adjusting strategy as the market adjusts. The vehicle can do both battery swapping and charge at home, and will consider market needs while continuing to believe in battery swapping as a game - changer for India.

Q: Can you comment on the status of the battery pack factory and vehicle manufacturing capabilities in India?

A: Gogoro is getting ready for the Indian market, including getting suppliers and battery pack factory ready. The pilot with Rapido has shown great feedback, and is waiting for the subsidy program to be in place to scale up.

Q: Gogoro Batteries have proven econ power devices beyond mobility like smart parking meters, back power for traffic lights. Are there any plans to sell these batteries and connectors so that new devices could be developed and could be powered by Gogoro batteries?

A: Gogoro has received inquiries about using batteries for other devices and is working on some ideas, with a battery connection kit, security kit and interface kit to allow monitoring of batteries for different devices, and welcomes ideas for expanding battery applications.