Gogoro(GGR) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Full year revenue for 2024 was $310.5 million, within the previously provided range of$305 million to $315 million [29] - Fourth quarter total revenue was$73 million, down 20.2% year-over-year [35] - Full year total revenue decreased by 11.2% year-over-year [35] - Adjusted EBITDA for the full year was $46.5 million, an increase of$1 million from the previous year [45] - Net loss for the fourth quarter was $71.8 million, an increase from a net loss of$26.7 million in the same quarter last year [42] - Full year net loss was $123.2 million, an increase from a net loss of$76 million last year [43] Business Line Data and Key Metrics Changes - The energy business is expected to break even by 2026, with free cash flow anticipated in 2027 [9][49] - Battery swapping service revenue for the full year was $137.9 million, up 4.6$37.1 million, down 37% year-over-year [36] - Gross margin for the full year was 2.4%, down from 14.6% last year [37] Market Data and Key Metrics Changes - The overall market for 2-wheelers in Taiwan declined by 13.6% in 2024 [33] - Gogoro maintained a 72% market share of electric scooters despite a slight contraction in the overall 2-wheel market [31] - Electric 2-wheeler sales penetration remained at 10.5% [33] Company Strategy and Development Direction - The company is focusing on three main business priorities: energy business, vehicle business, and international expansion [10] - Plans to streamline operations and reduce costs, with a fixed spending budget reduced by more than 32% from $120 million in 2024 to$82 million in 2025 [22] - Commitment to international expansion with launches in Colombia, Singapore, and Nepal [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability through a focus on the energy business and cost control measures [54] - The company is optimistic about the demand for sustainable energy solutions and believes it is well-positioned to lead this transformation [27] - Management acknowledged the challenges in the transportation and energy industries but emphasized a commitment to customer experience and profitability [26] Other Important Information - The company received several accolades in 2024, including recognition as Asia Pacific's 1 most Innovative Company by Fast Company [23] - Gogoro's battery swapping ecosystem has saved over 1 million tons of carbon emissions [33] - The company plans to continue upgrading battery packs to improve efficiency and extend battery life [41] Q&A Session Summary Question: Can you provide additional color on your expectation of energy business to breakeven in 2026? - Management stated that with approximately 640,000 subscribers and predictable ARPU, they are confident in breaking even on a non-IFRS basis in 2026 [53][54] Question: What action plans can you implement to raise your stock price back above $1? - Management indicated that stock price reflects market confidence in their strategy and profitability path, and they are exploring various actions to regain compliance by the April 28 deadline [56][57] Question: What underlying growth assumptions are in place to achieve profitability targets? - Management is using conservative growth assumptions for vehicle sales, with targets in line with previous year sales [62][63] Question: How should we size the market potential for energy storage and international expansion? - Management highlighted significant opportunities in energy storage, especially with the push for renewable energy in Taiwan and Southeast Asia [74][75] - They emphasized the need for policy, partners, and patience for successful international expansion [84]