Since launching in 2011, Gogoro (GGR) has grown into an EV battery swap leader.
Gogoro released its Q2 earnings results yesterday, signaling a cautious but optimistic road ahead in the second half of 2022.
Gogoro’s previous growth continued in Q2, according to its earnings report, yet the second half of 2022 may be more of a challenge.
When Gogoro first started developing smart batteries and electric Smartscooters, the resources needed were not readily available. Therefore, Gogoro created its own Smart factory while expanding and developing its supply chain.
Today, Gogoro offers one of the world’s most extensive battery swapping networks. In fact, over the past six years, electric-powered two-wheelers (ePTW) have soared in popularity in Taiwan, largely thanks to Gogoro.
When Gogoro launched its first ePTW in 2015, ePTW’s were virtually nonexistent in Taiwan. Electric scooters now make up about 10% of all PTWs in Taiwan.
Furthermore, 92.2% of those electric scooters came from Gogoro and its partners. And this is just the start of Gogoro’s expansion plans. After achieving success in Taiwan, Gogoro looks to partner with outside OEMs while growing into other regions.
Gogoro announced its plans to expand into Israel in May, part of its strategy to grow into western markets.
A big part of Gogoro’s success is due to the ease of use behind its e-scooters and battery swap services. Rather than charging your Gogoro e-scooter at home, you can pull up to a GoStation and swap it for a charged one in seconds.
Meanwhile, only subscribers have access to the battery swap services, giving Gogoro a recurring revenue business model.
On Gogoro’s Q2 earnings report, the company’s subscriber base swelled to 484,000 monthly battery swapping subscribers. Take a look at the numbers below.
Takeaways from Gogoro’s Q2 earnings report
A resurgence of COVID-19 in Asia and a deteriorating global economy are leading Gogoro to remain cautious on its outlook for the second half of 2022.
Between lockdowns in China and a surging US dollar, Gogoro’s growth slowed in its Q2 earnings. Perhaps most importantly, Gogoro’s revenue was largely impacted by the currency exchange to the US dollar, which caused a 6.7% negative impact in Q2.
Despite these hurdles, Gogoro still managed to grow its revenue by 5.3% YOY to reach $90.7 million. Moreover, network revenue hit $30.4 million, an increase of almost 30% from 2021.
Founder and CEO of Gogoro, Horace Luke, said:
These results demonstrate the strength and potential growth of our battery swapping ecosystem in Taiwan and in our new markets, but given the current adverse market conditions, global macroeconomic challenges, and COVID uncertainty, we are taking a conservative approach to our second half business plans.
Gogoro ended the quarter with $378.8 million in cash. Lastly, the battery swap leader expects slightly lower full-year revenue between $380 million and $410 million, almost entirely from its Taiwan market.
Overall, Gogoro posted a net loss of $121.1 million in its Q2 earnings. The significant loss is due to a one-time SPAC merger transaction expense due to its public listing.
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Author: Peter Johnson