Gogoro Records 3.8% Decline In Q2 Revenue Dragged By Lower Scooter Sales In Taiwan

Gogoro Inc GGR reported a second-quarter FY23 sales decline of 3.8% year-on-year to $87.25 million. On a constant currency basis, the revenue increased by 0.2% Y/Y.

Battery swapping revenue for Q2 totaled $33.3 million, a 9.6% growth primarily due to its larger subscriber base and the high retention rate of subscribers.

The gross margin for the quarter expanded 120 basis points to 15.2%. The operating loss narrowed to $(20.3) million from $(224.1) million last year.

EPS loss for the quarter was $(0.02) compared to $(0.53) last year.

Adjusted EBITDA increased to $12.9 million from $9.3 million last year.

Gogoro held $144 million in cash and equivalents as of June 30, 2023.

Horace Luke, chairman, founder and CEO of Gogoro, said, "In the second quarter, we improved gross margin, operating expenses, and adjusted EBITDA. We also continued our growth in battery swapping service revenue and saw a slight increase in our overall revenue on a constant currency basis. Despite these positive results, our scooter sales in Taiwan were slightly below that of the same quarter last year. But we aren't standing still, we are aggressively investing in our marketing and retail channel expansion in Taiwan and we are continuing to build out our portfolio. We plan to introduce several vehicle models in the coming quarters that will expand our product family, increase sales and grow revenue in both Taiwan and our other markets."

Outlook: Gogoro lowered its FY23 revenue outlook from $400 million - $450 million to $340 million - $370 million.

The company's revised outlook reflects soft demand in the Taiwan market, the current market outlook, and the timing of realizing its international projects.

Price Action: GGR shares traded higher by 1.82% at $3.07 on the last check Thursday.