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&D costs directed toward India. 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 and 2024 to continue to expand our GoStation network footprint. Turning to third quarter 2023 financial results, for the third quarter, total revenue was $91.8 million, 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 $3.8 million. Sales of hardware and other revenue for the quarter was 58.2 million, down 19% year-over-year and down 15.2% year-over-year on a constant currency basis. Both electric-powered two-wheelers and powered by the Gogoro Network markets were negatively impacted by the result of deep discounts on internal combustion engine vehicles introduced by Taiwan scooter manufacturers in the third quarter. We refrain from participating in the price war, as we believe that this approach is not in the best interest of Gogoro’s long-term growth strategy. Compared to the same quarter last year, sales of all electric-powered two-wheelers were down 13% and Gogoro branded vehicles were down by 18%.
Battery swapping service revenue for the third quarter was $33.6 million, 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 third quarter exceeded 570,000, up 12.9% from 505,000 subscribers at the end of the same quarter last year. 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 to maximize our battery swapping network efficiency. For the third quarter, 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 third quarter, net loss was $3.1 million, down $59.5 million from a net income of $56.4 million in the same quarter last year. The net loss was primarily due to a decrease of $66.6 million 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 Gogoro’s stock price and also a $1 million decrease in gross profits due to lower revenue.
The net loss was partially offset by an $8 million decrease in operating expenses, primarily consisting of a $2.1 million decrease in share-based compensation, a $4.7 million decrease in expenses for sales and marketing programs, mainly due to our efforts in increasing marketing efficiency and a $1 million decrease in research and development expenses. For the third quarter, adjusted EBITDA was $13.1 million, up from $9.2 million in the same quarter last year. The increase was primarily due to a $5.9 million decrease in operating expenses, excluding share-based compensation, as a result of various cost savings initiatives. The increase was partially offset by a $2.9 million decrease in non-IFRS gross margin due to lower volume. We reduced operating cash outflow by $40.5 million compared to the same quarter last year by tightening our business operations and reducing working capital.
We borrowed $72.8 million and paid back $63.4 million in bank loans in the third quarter to finance our investing activities. With a $151.5 million cash balance at the end of the third 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 million to $370 million. We also continue to estimate that Gogoro 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&A.
A – Michael Bowen: [Technical Difficulty] Color on India and the Philippine markets, expansion plans and status. And when do you anticipate material sales from either market?
Horace Luke: 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 toward our battery-packed factory readiness and we expect to be operational in the first half of 2024. We’ve already delivered samples of our locally sourced and assembled vehicle to our B2B partners and have already started to book some orders. We’ve also begun deploying GoStations in Delhi and we’ll 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.
