Gogoro, a global technology play in battery swapping ecosystem has revised its 2022 guidance. Given the current market and macroeconomic conditions combined with the impact of Covid-19 in Taiwan, it has now brought down its revenue guidance to $380.0 million from $410.0 million earlier.
The company aims to focus on maintaining its gross margin in the second half of the year. Its third quarter revenue is expected to contribute around 25 percent of the full year revenue and estimates that almost all of 2022’s full year revenue will be from the Taiwanese market.
The battery swapping major’s second quarter revenue was negatively impacted due to exchange rate. The approximately 6.7% change in exchange rate between Taiwan Dollar, Gogoro’s booking currency and US dollar, its reporting currency, since the beginning of the year led to the company clocking a revenue of $90.7 million.
Continued growth in Gogoro Network subscriber base to more than 484,000 monthly battery swapping subscribers helped offset the impact. In fact, its gross margin of 14%, up 1.3% year-over-year and non-IFRS gross margin of 15.5%, up 2.8% year-over-year is mainly based on improved product portfolio mix and improved Gogoro Network cost efficiency.
Speaking on the company’s performance and the triggers for revising the guidance, Horace Luke, founder, chairman, and chief executive officer of Gogoro 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.”
Incidentally India’s two-wheeler major, Hero MotoCorp had inked a strategic partnership with Gogoro for setting up battery swapping network across the country. The steady increase in Gogoro’s network has been the key investment rationale driving the partnership.