Gogoro Q3 2023 Earnings Call Transcript

Quartr
Provided by Quartr
November 16, 2023

There are 4 speakers on the call.

Operator

Welcome to the Gogoro Inc. 2023 Q3 Earnings Call. These sessions will be recorded. I would like to introduce Bruce Aachen, CFO of Gogoro, who will kick us off.

Speaker 1

Thanks, operator, and thanks to everyone for taking the time to join us today. I'm Bruce Aiken, CFO of Gobero, and I'm pleased to welcome you to our 3rd quarter 2023 earnings call. Hopefully, by now you've seen our earnings release. If you haven't, It's available on the Investor Relations tab of our website, investor. Govro.com.

Speaker 1

We'll also be displaying the materials on the webcast screen as we go. We're looking forward to sharing our Q3 results as well as providing guidance on what we're seeing as the outlook for the remainder of 2023. Before our CEO, Horace Luke shares, I'd like to introduce Michael Bowen of ICR, who will share the process for today's call and provide some important disclosures. Michael?

Speaker 2

Thank you, Bruce. I'm sure you're all looking forward to hearing from Horace and Bruce on behalf of GoGro. But before that, allow me to remind you of a few things. You are all currently on mute. After Horace has given a brief overview of Gogoro and some of the business highlights from Q3, Bruce will go a bit deeper into the Q3 financial results, and then we will open the line for Q and A and answer as many questions as time allows.

Speaker 2

During the call, we will make statements regarding our business that may be considered forward looking within applicable Securities Laws, including statements regarding our Q3 2023 results, management's expectations for our future financial and operational performance, the capabilities of our technology, projections of market opportunity and market share, the strategic cooperation and investments in India and the Philippines, Our potential growth headwinds facing the company the company's business plans, including its expansion plans the company's expectations relating to its growth in overseas markets statements relating to the potential of our strategic collaborations, partnerships and joint ventures, statements regarding regulatory developments and our plans, prospects and These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed prior to market open today and in our SEC filings. We undertake no obligation to update forward looking statements except as required by law. Further, during the course of today's call, we will refer to certain adjusted financial measures. These non IFRS financial measures should be considered in addition to, not as a substitute for or in isolation from IFRS measures.

Speaker 2

Additional information about these non IFRS measures, including reconciliation of non IFRS to comparable IFRS is included in our press release and investor presentation provided today. Now, we'll turn the call over to Doris.

Speaker 3

Thanks, Bruce and Michael. Thanks for joining our call today. We're pleased to have this opportunity to meet with you and provide an update on the Q3 2023 results and for the rest of 2023. When we prepare for these quarterly results and remarks, as well as answer your questions, We're always struck by the need to address the immediate quarter, but not to waver from our mission. Quarters go up and down, results vary, But our mission remains unchanged.

Speaker 3

We're seeking to put smart, swappable power In the reach of every urban rider in the world. This is a bold mission, one we're committed to. We seek to advance that cost every day and as we stated many times, we believe we're on the right path. 1 at a time, individual riders are selecting a better, more sustainable, more data driven riding experience By choosing to adopt the Gogrow battery swapping system, we know that our technology can change the world. In the ever evolving mobility landscape, the macro message is clear.

Speaker 3

It is time for sustainable shift. As our world faces growing environmental challenges, a fundamental transformation in our approach to mobility is imperative. Across many regions, this shift to electric vehicles and EV second life use are gaining momentum even in the face of legacy technologies. As stated last quarter, the long term future remains bright despite some near term challenges. And we remain excited for the future of vehicle and infrastructure electrification.

Speaker 3

We see a world where 2 wheel electric vehicle And battery swapping are affordable, stylish and readily available, revolutionizing urban mobility while significantly reducing the environmental footprint. Similar to last quarter, the macroeconomic environment In Q3 has continued to be challenging, but we remain confident that customer interest remain high in the markets we serve and in new and prospective markets. Let me begin with a few recent highlights from Q3. Who will elaborate on these in more detail, but I do want to start with some good news. In October, we launched our new crossover vehicle in the Taiwan market, a 2 wheel electric SUV.

Speaker 3

Crossover is a new breed of versatile rugged vehicle that can be customized for different riders' personal use cases and needs. Our India vehicle factory is now up and running, And we've delivered our 1st made in India vehicle samples to B2B customers there. This is the first of our B2B focused vehicles, which will include locally sourced components and is assembled in India. We'll be commercially launching that vehicle later this quarter. We've also announced an MOU with HBCL, a large Indian gas retailer to place gold station at their station across India.

Speaker 3

We launched a new GoGirl Experience Center in the Philippines together with our Aiello Group, Globe Terracon and 917 Ventures with services going live before the end of the year. We also attended the Japan Mobility Show together with MIH, Foxconn's EV Consortium and demonstrated a 4 wheel concept car, which has both a fixed battery as well as Gogoro batteries. This lowers product cost with a smaller fixed battery, but doesn't impact range given the flexibility of the supplemental GoGirl Batteries. We held our 1st post pandemic Type A Bridge Community event. Over 2000 Go Go Riders joined us at a Halloween night party and ride through Taipei Street celebrating the ongoing transformation of urban mobility in Taiwan.

Speaker 3

We partner with Apple on 2 new features. Our riders can now add a digital scooter key to the Apple Wallet on their iPhone and Apple Watch and use their phone or watch as their vehicle key. And in addition, we also work with Apple to integrate our vehicles into Apple's Find My feature across the device ecosystem. This is the world's first for 2 wheeler integration for both Apple and Gogoro. Lastly, We are honored to be recognized as one of MIT Technology Review's 2023 15 Climate Tech Companies to Watch.

Speaker 3

Gogoro has always pushed the envelope on what is possible in the electric mobility space and will keep doing so. With new products, new software capabilities and new partnerships. As always, The team is working hard and despite the highlighted accomplishment, we were never satisfied. We'll continue to innovate and deliver new services and capabilities for existing customers and new vehicles to target new customers and new markets. Despite these strides forward, our core market of Taiwan continue to be challenging.

Speaker 3

Taiwan's food market remains very competitive. Taiwan's macroeconomic environment continues to have a significant impact on consumer sentiment. Intense price competition continues as ICE Manufacturers strive to maintain their market position and attract cost conscious customers. And government subsidies for ICE vehicles continue to be a barrier to EV adoption. In Q3, The total number of registered scooters in Taiwan was 242,944, up 17% from Q3 2022.

Speaker 3

Through September 2023, the total number of registered scooter was 606,691, up 14% compared to 2022. The total number of registered electric scooter in Q3 in Taiwan was 20,815 units, down from 23,926 units in Q3 of last year. Of these electric scooters, approximately 17,314 were Gogoro powered vehicles and 15,302 were Gogrow branded vehicles. We attribute this slowing of electric vehicle purchase to the price competition from ICE vehicle makers. While unable to deliver competing electric vehicles, They're competing purely on price and attracting the highly price conscious consumer segment with pricing power, scale and the ongoing government subsidies provided for the retirement of a gas vehicle.

Speaker 3

Any replacement gas vehicle who will be on the road for 10 years or more, impeding the government's ability to achieve the net zero targets. Climate change and achieving net zero emission have become shared global challenges. The Taiwan government has declared its commitment to achieve net zero emission by 2,050, an all new 2 wheel and 4 wheel passenger vehicle will be electric by 2,040. He has also outlined that 35% of all new vehicle will be electric by 2,030 and 70% by 2,035. We're working on a number of initiatives to spur growth and meet these government objectives.

Speaker 3

As the adoption rate of electric scooter is not keeping pace with the government's goals. Clearly, the ongoing government subsidies for ICE vehicle Is an obstacle to the EV adoption that needs to be changed. We are committed to substantial investment in our marketing and channel touch points in Taiwan and are on track with our target of rolling out 150 additional Gogoro quick service stores by the end of the year. Gogoro quick service stores are smaller, more flexible and these shops service both EV as well as ICE vehicles, creating opportunities for existing ICE service workers to become certified to also repair Gogoro vehicles and ensure their livelihood in a changing era of mobility. As our installed base broadens, we want customers to be able to easily find a great service experience.

Speaker 3

In addition, we are actively diversifying our product line and anticipate several significant vehicle introductions in the upcoming months. These new additions will broaden our product range at the high end of the performance stack as well as provide a compelling EV experience at the sweet spot of affordability. These products can serve the Taiwan market, but will also have broader global appeal. We continue to scale the GoGo network. In Q3, we increased the total number of Go Station locations to 2,570 in Taiwan.

Speaker 3

Most of these locations that we added our Supergo stations able to serve our growing customer base more efficiently. Through our collaboration with the leading innovative energy Service and virtual power plant provider, Enel X. We have successfully deployed over 1,000 locations and integrated 2 Aiken. 5 100 battery swapping stations into the Enel X Virtual Power Plant or what we call VPP across Taiwan. Additionally, we continue to demonstrate the growth of additional use cases for Golar's smart batteries, including 6 55 smart parking meters and 187 smart traffic signals UPS backup across Taipei's major intersections, which are now live and operational.

Speaker 3

We have also recently won a government bid to build and demonstrate energy storage, which would be deployed in a variety of applications. This is another great demonstration of the flexibility and use cases for Gogo's smart batteries for second life utilization to generate Additional Second Life revenue beyond mobility. Community is important to us. We're building a community of like minded, socially conscious consumer who want a great riding experience, a great refueling experience via our almost instant swap and go service, but also want to play their part to address the challenges of urban mobility and sustainability. We build communities through a variety of events.

Speaker 3

Once a customer has become a Gogoro writer, they frequently engage broadly, not only with the Gogoro community, but with other causes such as the increased use of alternative energy, engagement on climate challenges and other local issues. After a 3 year hiatus, our flagship Taipei Bridge Community event made a strong comeback on October 28, and for the first time, we hosted a Halloween themed costume night. The event attracted over 2,000 Gogoro and partner vehicle owners, GoShare users and electric vehicle enthusiasts from all over Taiwan. The grand finale was the night ride on the Taipei bridge, which saw more than 1500 electric scooters making 0 noise, 0 Fume and marking for a successful and funny conclusion to the ride. We aim to let more consumers understand and enjoy Aiken.

Speaker 3

We owe our success to all the support and passion of our more than 2,600,000 Gogoro and GoShare users. We're continuing our effort to provide innovative products and top notch services to enhance the quality of life and the environment. We regularly refreshed our product roadmap And there were new products and services introduced in Q3. These products will be delivered in volume throughout Q4. In late July, we launched a collaboration with famous Japanese designer Naoto Fukasawa and the Muji brand.

Speaker 3

The collaboration include the newly designed Gogrow Viva ME and the Gogrow Viva MiX ME, along with a range of merchandise and accessories. These vehicles have been very popular with our customers who appreciate the design simplicity and the use of recycled polypropylene panels made from plastic waste. These plastic waste was partially supplied by Gogoro and Muji customers. These are examples of how Gogoro's products are not just 2 wheelers, But our products seeking to address larger issues of pollution, waste and allow community members to make a difference while also getting from point to point in These are small, but meaningful steps in creating a more sustainable community and future. Last month, we unveiled the all new Gogoro crossover smart scooter, marking the debut of our first 2 wheel SUV.

Speaker 3

Engineered to be rugged, perfect for heavy workload and super adaptable, Crossover riders can personalize and customize their vehicle with a wide range of accessories and over 100 color combinations. Built on a brand new design all terrain frame, a combined increased sturdiness with a range of storage and riding capabilities. We can expect to see crossover on the road before end of this month. Last week, we announced a collaboration with Apple to integrate our digital scooter key in Apple Wallet and Apple Find My Network capabilities into our smart scooter. Our riders can now add a scooter key to Apple Wallet on their iPhone and Apple Watch, enhancing the riding experience by offering a seamless and touchless solution, while also offering additional security and privacy advantages.

Speaker 3

We're excited to be introducing the first two wheelers in the world that support Apple Scooter Key and Apple Wallet. This is not only available on new smart scooters, but it will also be available to more than 300,000 existing Gogoro customers in Taiwan. We also announced that in the coming months, selected smart scooter owners will be able to use Apple Find My feature to locate their vehicles. Both of these technologies are initially available in Taiwan, but we will also be rolling them out to other markets in the future. We're always looking for ways to improve and provide more innovative, smarter and more convenient riding experiences to our customers.

Speaker 3

Over the past few weeks, we participate in the Japanese Mobility Show within the MIH consortium booth. The MIH consortium is an open EV ecosystem that promotes collaboration in the mobility industry. During the event, we demonstrated our industry leading battery swapping technology alongside with our new crossover and Muji smart scooter. Additionally, NIH unveiled the much anticipated Project X concept car. To Project X, which features a unique fixed battery system integrated with Gogoro smart batteries that uses Gogoro battery swapping, a significant step in addressing user concerns about urban range anxiety.

Speaker 3

This marks Gogoro's first entrance into 4 wheeled transportation and is another significant milestone. Last month, MIT Technology Review named Gogoro as one of the 2023 15 Climate Tech Companies to Watch. The award spotlight businesses that possess significant potential to make substantial reduction in greenhouse gas emission who will tackle the challenges of global warming. We are honored to receive this recognition and congratulate the other winners as well. Collectively, we can make a difference for the future.

Speaker 3

In September, we're delighted to announce a new GoGirl concept store in Taiwan. This store is uniquely centered around the use of recycled glass material, emphasizing the importance of Second Life material and our continued commitment to the sustainable reuse of resources, making GoGirl Retail experience relevant to the local community and promoting the awareness of sustainability. We continue to use 40% to 50% renewable energy in our Gogoro factories and are committed to increase the number of fully renewable powered supplied retail stores in our channel. With that high level overview of our Q3 activities and results, I'd like to invite Bruce to provide an update on our international plans as well as financial update.

Speaker 1

Thanks, Horace. We are actively expanding our presence internationally with a clear focus on our commercial launch in India, but we're also launching in the Philippines and continue to expand our 12 city operation in Korea, as well as maintaining pilots in other markets. Our manufacturing capabilities in India are established and we are manufacturing our first vehicles using locally sourced components, which readies us for India's FAME II incentive program, which is an incentive scheme for manufacturers of EVs intended by the government to spur EV adoption. We anticipate beginning our smart battery pack manufacturing in the first half of twenty twenty four, And we're thankful to the government of Maharashtra for their ongoing support as well as to our suppliers that are working with us to manufacture locally in India. We've made a rugged high quality vehicle that meets local market pricing demands.

Speaker 1

The value proposition for high quality vehicle and for battery swapping Is most evident in the B2B market segment, where vehicle downtime for traditional charging isn't an option because of lost orders and lost revenue to both individual riders and fleet operators. We're pleased to share that in the past few weeks, we've delivered our first vehicles to B2B partners for testing And we will be announcing more commercialization details about our smart scooter and Gogrow network battery swapping launch soon. As we launch services in new cities, ensuring sufficient swap station locations exist to meet customer needs and operate an effective GoGro network is critical. We can play stations at B2B delivery hubs, but open stations are a critical part of the overall infrastructure build out as well. Last week, we announced a significant MOU with Hindustan Petroleum Corporation Limited or HPCL, one of India's leading oil companies to rollout Gogoro battery swapping stations at thousands of HPCL gas stations across India in the coming years, giving us potential access to HPCL's 21,000 plus retail locations, a large customer facing footprint.

Speaker 1

Earlier this year, we formed a joint venture in the Philippines with market leaders Ayala Corporation, Globe and 917 Ventures Inc. To launch Gogoro Smart Scooters and Battery Swapping in the Philippines, starting with Manila. Just last week, we opened our first GoGro Experience Center in Manila, which is located in the Greenbelt Mall in Makati. The GoGro Aiken. Experience center showcases both our vehicles and battery swapping.

Speaker 1

We welcome all of our Filipino fans to visit the store and personally experience Go Grow for yourself. This marks the beginning of our Philippines go to market campaign and we plan to begin sales and deliveries in December. The Philippine government has demonstrated a commitment to electrification by reducing tariffs on imported batteries and swap stations to negligible levels. Extending that reduction to include 2 wheel vehicles would make a big difference in the pace of EV adoption in the Philippines. In fact, import duties on 4 wheel vehicles have been removed for a period of 5 years just spur growth, and we hope the government will replicate this policy for 2 wheelers.

Speaker 1

This support would help speed the transition of Filipino consumers to clean electric vehicles and help with ongoing pollution challenges in densely populated Manila. Our business in Korea is stable and growing. We now have go stations deployed in 12 cities and our vehicles are powering deliveries and individual customers' needs across the country. I'm proud of the way the entire Gogoro has rallied around our financial objectives. We have very intentionally monitored our cash position and conserved cash.

Speaker 1

We have aggressively sought to maintain our gross margin despite slightly reduced volume and we've again delivered positive EBITDA for the 19th quarter in a row And also delivered positive operating cash. Despite the drop in Q3 revenue associated with lower manufacturing volumes, The balance of our financial results are quite positive. We will continue to focus on investments like international expansion that drive growth. We will continue to prioritize a healthy business rather than chase price competition and we will continue to focus on efficiency of operations including material costs, manufacturing costs, overhead and capital expenditures. Fully 30% of our spending is now directed towards international growth with an even higher percentage of our R and D costs directed toward India.

Speaker 1

We now have a solid team in India. We have factory plans for both vehicle and battery packs and we will be allocating capital in Q4 2023 2024 to continue to expand our Go Station network footprint. Turning to Q3 2023 financial results. For the Q3, total revenue was $91,800,000 down 10.2% year over year And down 6.5% year over year on a constant currency basis. Had the foreign exchange rates remained constant with the average rate of the same quarter last year, Revenue would have been up by an additional $3,800,000 Sales of hardware and other revenue for the quarter was $58,200,000 down 19% year over year and down 15.2% year over year on a constant currency basis.

Speaker 1

Both electric powered 2 wheelers and powered by the go grow network markets We're negatively impacted by the result of deep discounts on internal combustion engine vehicles introduced by Taiwan Scooter Manufacturers in the Q3. We refrain from participating in the price war as we believe that this approach is not in the best interest of Gogo's long term growth strategy. Compared to the same quarter last year, sales of all electric powered 2 wheelers were down 13% And Gogoro branded vehicles were down by 18%. Battery swapping service revenue for the 3rd quarter Was $33,600,000 up 10.4% year over year and up 14.1% year over year on a constant currency basis. Total subscribers at the end of the 3rd quarter exceeded 570,000, up 12.9% from 505,000 subscribers at the end of the same quarter last year.

Speaker 1

The year over year increase in battery swapping service revenue was primarily due to our larger subscriber base Compared to the same quarter last year and the high retention rate of our subscribers, we continue to see the strength of our subscription based business model to accrue more customers Aiken. For the Q3, gross margin was 18.3%, up from 17.4% in the same quarter last year, while non IFRS gross margin was 19.2%, down slightly from 20% in the same quarter last year. The favorable change in gross margin was driven by the improved cost efficiencies of Gogoro's battery swapping services and improvements in other operational efficiencies. This favorable change was partially offset by the higher production cost per vehicle due to limited volume by increased promotion cost per vehicle and changes in the mix of vehicles sold. For the Q3, net loss was $3,100,000 down $59,500,000 from a net income of $56,400,000 in the same quarter last year.

Speaker 1

The net loss was primarily due to a decrease of $66,600,000 in the fair value of financial liabilities associated with outstanding earn out shares, Earn in shares and warrants compared to last year as a result of the decrease of Gogo stock price and also a $1,000,000 decrease in gross profits due to lower revenue. The net loss was partially offset by an $8,000,000 decrease in operating expenses, This is primarily consisting of a $2,100,000 decrease in share based compensation, a $4,700,000 In expenses for sales and marketing programs, mainly due to our efforts in increasing marketing efficiency and a $1,000,000 decrease in research and development expenses. For the Q3, adjusted EBITDA was $13,100,000 up from $9,200,000 in the same quarter last year. The increase was primarily due to a $5,900,000 decrease in operating expenses excluding share based compensation as a result of various cost savings initiatives. The increase was partially offset by a $2,900,000 decrease in non IFRS gross margin due to lower volume.

Speaker 1

We reduced operating cash outflow by $40,500,000 compared to the same quarter last here. By tightening our business operations and reducing working capital, we borrowed $72,800,000 and paid back $63,400,000 in bank loans in the 3rd quarter to finance our investing activities. With 151 point $5,000,000 cash balance at the end of the 3rd quarter and additional credit facilities, we believe we have sufficient sources of funding to meet our near term business growth objectives. Based on the current market outlook, we are making no change to our estimated 2023 revenue guidance range of $340,000,000 to $370,000,000 We also continue to estimate that Gogo will generate approximately 95% of 2023 full year revenue from the Taiwan market. With that financial update, I'll hand things back to Michael for Q and A.

Speaker 2

Color on India and the Philippine markets expansion plans and status. And when do you anticipate material sales from either market?

Speaker 3

Thanks, Michael. I'll take that. I'll address India first and then the Philippines. We have a vehicle factory up and running in India and as you saw in the presentation there. And we have made great progress towards our battery pack factory readiness and we expect to be operational in the first half of twenty twenty four.

Speaker 3

We've already delivered samples of our locally sourced and assembled vehicle to our VB partners and have already started to book some orders. We've also begun deploying Go stations in Delhi and will begin rolling out to other cities soon. We're extremely grateful to our suppliers, our partners and especially the government of Maharashtra, our prospective customers and all the participants in our pilot. We've learned a great deal about the Indian riding conditions through the pilot, and we use those learnings to ensure that our vehicle and our network offering will meet customers' expectations. The technology now I can say is ready to go.

Speaker 3

In the Philippines, we've opened a GoPro Experience Center through our joint venture with Aiella, Globe and 917 Ventures. The GEC opening was a great start to our presence in Manila, and we'll be providing more details about our vehicle and network plans in the coming weeks. If you're in Manila, come to our experience center in the Greenbelt Mall and see how cool Gogol products are for yourself. You can even take one for a test ride if you like. We've always said that Taiwan will represent approximately 95% of the revenue short term in 2023, and that is exactly the case.

Speaker 3

We expect revenue from international markets to grow in 2024 and provide meaningful uplift to our total revenue overall.

Speaker 2

Okay. Thanks, Horace. We also have another question. For the past quarters, you've shown good control On your financial metrics like margin, cash flow, EBITDA and trimming your net loss figures. Could you elaborate on whether you think you'll be able to keep that trend going?

Speaker 1

Thanks, Michael. We've been working hard, as you can tell, across the company, to ensure that we exercise financial discipline. It's not just the finance team. It has to happen across our operations, across our international teams, across the entire employee team. And we've got alignment on that clear goal.

Speaker 1

We've got clear intention from each team member to think like an owner, and to be financially responsible. So when volumes are down a bit or when other challenging So when volumes are down a bit or when other challenging circumstances arise, we have to keep that focus on our long term financial stability. That includes establishing and executing to the right metrics, some of which are the ones that you mentioned above. So we're closely tracking spending for efficiency. We're tracking EBITDA and as mentioned, we've been EBITDA positive now for 19 consecutive quarters.

Speaker 1

We're making progress towards Achin. Everyone's goal, including our own, of turning cash flow positive. So we're doing those things while focusing to invest for Growth, both here in Taiwan, but also in international markets. We'll keep the focus. We'll keep working closely with the operations team to make wise investments, And we intend to continue the trend of solid financial results.

Speaker 2

All right. Thank you, Bruce and Horace.

Operator

Aiken. We have an online questions from the audience. Kokoro batteries are the perfect size and capacity to power electric forklift, lawnmowers, golf carts and portable energy stations. Does Gogoro have any plans on selling your trees to businesses and consumers around the world and going beyond battery subscriptions. This will help create diverse ecosystems of devices that Gogoro Batteries can power like the way AA batteries have done.

Operator

Thank you.

Speaker 3

Sure. This is a great question. We've always seen batteries as a module of portable power. Of course, with Gogrow today, you've seen us taking care of 2 wheel vehicle as well as 3 wheel vehicle. And very soon, you saw us just in the Tokyo Auto Show, where we demonstrated how we can actually apply that to 4 viewers as well.

Speaker 3

The batteries have always been, just as you said, they're like AA form factor type of configuration, where we can use a single battery or 2 batteries in parallel or in series or even 4 batteries in either all in series or all in parallel or a 2 by 2 configuration. Of course, this can empower a lot of different type of equipment, such as you mentioned forklifts, golf carts and others. But at Gogoro, we are for the short term being, we are very, very focused on the largest opportunity ahead of us. Given that we are we have built the world's perhaps densest battery with the most amount of energy for the volume and the weight that it has, We believe that there is a great application to the mobility space, which happens to be one of the largest, Aiken. Of course, the opportunity not only for financial opportunity, but also for impact opportunity where we can actually change countries like India or cities across Southeast Asia, we believe that that is our, at the moment, a very, very focused goal for us, but also at the same time, we are constantly talking with and planning for in one day, We will apply our battery to other configurations as well, not other type of use as well.

Speaker 3

Thank you.

Operator

Thank you for the questions. We do have another questions from the online audience. Gogoro batteries have been proven to be safe and durable with years of real world data. Do you have any plans on opening up your battery platform and selling batteries to other e bikes manufacturers? Thank you.

Speaker 3

I'll take that as well, Bruce. I think the question of enabling using our battery power and battery swapping system for others It's exactly along our thesis. We have, of course, been partnering with Yamaha, with Suzuki Taiwan, with Amotor, it's by Aon, with PGL and number of other vehicle makers, a total of about 11 or 12 different vehicle makers across the world. The list keeps growing and growing and growing because they see the value on what our technology brings to them when they think about electrification of their fleet and their businesses. I think all of us can agree that there is an imminent change coming, especially around lighter weight urban mobility, where Electrification is possible and will happen.

Speaker 3

And so we're working with these larger vehicle makers to bring our value of our not only our Aiken. But our battery swapping system that enables the consumer to get on board without having to worry about range anxiety, without having to worry about buying a battery, which Achin. Not only is the purchase price of the battery, but also the replacement cost potential when the battery needs the retirement. And also at the same time providing city governments a great solution for safety and predictability as we put these stations and centralize our charging instead of scattering them all around the The different parts of apartment buildings and all over town. We do constantly work with a number of other vehicle makers as well, Planning for even a greater footprint, not only in different cities, but also with different vehicle types and different brands across the world.

Speaker 3

Thank you.

Operator

Can also submit your questions via the webcast. I see there are no further questions at this time. I would like to hand the call back to Michael for closing.

Speaker 2

Okay. Thank you, operator. So at this time, we will hand the conference back over to Horst for a few closing remarks. Thank you.

Speaker 3

Thanks, Michael. I'm always energized by the chance to share with you progress with all the investors there on the call. In a tough market condition like we're facing today, we're focusing on continuing to deliver technology and solutions that customers want. This can take us in the shape of new vehicles or services, improve management of our GoGirl network or the initiation of our services in new markets. We've launched a number of these new services and products in Q2 and Q3, and we'll keep doing so in the remainder of 2023 and into Q1 2024.

Speaker 3

At Gogoro, we believe it is a great time to be contributing to the transition to green urban mobility, and we appreciate your support along the way. Thank you for calling in today. Thank you.

Operator

Ladies and gentlemen, that does conclude today's conference call. Thank you for your participation. You may now disconnect your lines.

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Earnings Conference Call
Gogoro Q3 2023
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