Gogoro Inc. Q4 FY2024 earnings call

Key Points

• Energy Business: Ended 2024 with nearly 640,000 monthly subscribers. In Q4 2024, battery swapping revenue surpassed vehicle sales. Investing $100M annually in infrastructure over 3 years. Planning to have energy storage and peak shaving products fully certified by the second half of 2025.
• Vehicle Business: Streamlining product lineup, using common components, optimizing supply chain. Upcoming product launches in 2025-2026.
• International Expansion: Launched services in Colombia, Singapore, Nepal; focused on Southeast Asia. Working with Castrol to accelerate adoption.
• Cost Reduction: Reduced fixed spending budget by over 32% from $120M in 2024 to $82M in 2025. Restructured organization, consolidated space, reviewed costs.
• Achievements in 2024: Received global accolades, expanded collaboration with TSMC, held rider event, received capital investments from Gold Sino and Castrol.

The energy business saw significant growth. In Q4 2024, revenue from Gogoro battery swapping business surpassed vehicle sales. For the full year 2024, battery swapping service revenue was $137.9 million, an increase of 4.6% year-over-year. The vehicle business had lower revenue; fourth quarter hardware and other revenue was $37.1 million, down 37% year-over-year, and full year hardware and other revenue was $172.6 million, down 20.8% year-over-year. Taiwan remains the primary revenue driver, accounting for more than 95% of total revenue.

Forward-Looking Statements

• Energy business on track to break even by 2026 and generate free cash flow in 2027.
• Vehicle business expected to break even by 2028.
• Full year 2025 revenue expected between $295 million to $315 million on constant currency basis, ~95% from Taiwan.
• Expect ~$25 million savings in 2025 compared to 2024 due to cost reduction plan.

Risks

• Market risks: Global shift to electric 2-wheelers, government regulations, slow-changing consumer behavior.
• Operational risks: Delays in international market development, impact of battery upgrade costs on gross margin.

Q: Can you provide additional color on your expectation of energy business to breakeven in 2026?

A: Henry and Bruce discussed conservative growth assumptions, cost optimization, and energy storage potential.

Q: Does Gogoro plan on releasing battery packs to consumers that can buy?

A: Gogoro is positioned as a service company, considering sellout but prefer services.

Q: Are there any plans to license your technology patents to diversify your revenue?

A: PBGN and software licensing exist, and Gogoro is open to broader partnerships for licensing.