Currently, the battery-swapping service offered by Gogoro has reached more than 552,000 subscribers, surge by14.0% from 484,000 subscribers in the same quarter in 2022.
Heaptalk, Jakarta — Taiwan-based battery-swapping service provider, Gogoro, revealed its recent financial performance for Q2 2023, recording a total revenue of $87.2 million. This attainment represents a decrease of 3.8% year-over-year but an increase of 0.2% on a constant currency basis.
Battery swapping service contributed $33.3 to total revenue in Q2, an increase of 9.6% yoy and 14.2% on a constant currency basis. Currently, the service has reached more than 552,000 subscribers, up 14.0% from 484,000 subscribers in the same quarter in 2022.
According to Gogoro, the increase in battery-swapping service revenue was driven by a larger customer base and a high customer retention rate. The Company stated, “We continue to see the strength of our subscription-based business model to accrue more customers to maximize our battery-swapping network efficiency.”
Sales of hardware and other revenues were $53.9 million, representing a decrease of 10.6% yoy and 6.8% on a constant currency basis. One of the reasons for this downturn was the reduced vehicle sales volume by 8.1% compared to Q2 last year.
Gogoro’s gross margin reached 15.2%, demonstrating an increment of 1.2% compared to Q2 2022. Non-IFRS gross margin was 16.0% which also experienced an increase of 0.5% compared to the same period last year. This upturn was triggered by the improved cost efficiencies of the battery swapping service operations and an increase in average revenue per energy subscriber. The new subscription programs and longer riding distances post-pandemic have boosted the average revenue for each subscriber.
Significant decline in net loss
“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,” said founder and CEO of Gogoro Horace Luke in a written statement.
Meanwhile, the net loss for the second quarter of 2023 was $5.6 million, significantly dropping by $115.5 million from $121.1 million in the same quarter last year. The decline in net loss was mainly due to a cutback in recording and operating expenses.
Gogoro has been successful in cutting several components of its operating costs, including costs related to acquisitions and share-based compensation. The Company also exercised strict control over other expenses such as sales and marketing as well as general and administration.
Further, according to Luke, the Company sees a strong interest across the region and around the world for sustainable two-wheel transportation. Besides, when evaluated by the B2B and B2C sectors, he conveyed that the Gogoro battery swapping service was consistently being chosen by customers.
“We are on track for market availability in India and the Philippines later this year. In India, we announced a strategic agreement, the first of its kind, with India’s State of Maharashtra government to manufacture our Smartscooters, Smart batteries, and GoStations in the state as well as to deploy the Gogoro battery swapping system across the state,” Luke added.
In Indonesia, Gogoro is present as the Electrum brand for its electric motorbike products. The brand is a joint venture between Gogoro, GoTo, and PT TBS Energi Utama.
