For the full-year 2023, adjusted EBITDA was $44.8 million, representing an increase of $3.6 million from $41.2 million last year. The increase was primarily due to a $9.6 million decrease in operating expenses as a result of various cost savings initiatives. The increase was partially offset by a $5.8 million decrease in gross profits due to lower revenue. We generated $59.8 million of operating cash flow in 2023 compared to 2022, where we used $64.8 million of cash in operations. With a $173.9 million cash balance at the end of 2023, and the additional credit facilities that are available to us, we believe we have sufficient sources of funding to meet our near-term business growth objectives. Based on the current market outlook, our 2024 revenue guidance is in the range of $385 million to $420 million.
The low end of this range represents 10% growth from our 2023 revenue. This growth is expected to come from unit sales increases in Taiwan and increasing base of subscribers to the Gogoro network, as well as the continued sale of vehicles and other hardware in international locations. We estimate that Gogoro will generate approximately 90% of 2024 full-year revenue from the Taiwan market and 10% from international markets. With that financial update, I’ll hand it back over for Q&A.
A – Unidentified Company Representative: Thank you, Horace and Bruce, for the detailed update. So as attendees are formulating their questions, I will ask two questions that we have collected from analysts. Question number one, there have been recently some setbacks on EV adoption for four-wheeler market. What are management’s thoughts on two-wheeler electrification adoption, and what is your plan to combat the recent intensified competition from ICE makers if you don’t plan to participate in a pricing war?
Horace Luke: I’ll take that. I think it is inevitable that traditional ICE vehicles will transition to EV. It’s just a question of time. And I think that it doesn’t matter if it’s four wheel or two wheel, that transition will happen, and it will happen even faster with two wheelers because the cost economic makes even better sense. But educating consumers that have had a long history of using ICE vehicles on the benefits of using electric is important, and it’s an ongoing journey for us. Achieving relative price parity on both vehicle costs as well as total cost of ownership over time is really important, and we believe that electric adoption will happen. While we don’t believe in engaging in short-term price competition, it’s beneficial to our long-term strategy.
Developing new technology and services that can help consumers get excited about electric is a really great inflection point we can put in. The most recently announced Pulse, the Gogoro Pulse, is a great example how and what electric can do that ICE cannot. With all the new technology and all the new interaction and all the new connectivity that the vehicle and the performance that vehicle can provide, I think it will really excite the market. And if you haven’t checked it out yet, please go to our website and check it out. It is generating a lot of buzz both in the marketplace and with the media here in Taiwan, and preorders are already rolling in for that product sight unseen. We are grateful for our customer that have already been subscribers for Gogoro network, and we encourage anyone that hasn’t tried an electric two wheeler to do so.
The riding experience and the usability is just day and night. I think you’ll find that experience a very positive one. Each person can make a contribution to the reduction in carbon emission by choosing electric vehicle. And in Taiwan, with the market share and penetration we have done, the difference is clearly visible on the street today.
Unidentified Company Representative: Thanks, Horace. So the second question is, can you provide some color on estimated market size, vehicle volume, and margin outlook for this year?
Bruce Aitken: Thanks, Annie. As we mentioned during the presentation, industry estimates for 2024 for the Taiwan market are approximately 750,000 to 850,000 unit sales. While other markets like India, for example, are many, many, many times larger, India’s annual sales are approximately 15 million to 20 million units. In Taiwan, we’re targeting growth on last year’s volume. We’re targeting growth on market share and broad penetration across all segments with the introduction of new vehicles and new services. In India, we’re really just getting started, but we are expecting during 2024 to make solid inroads in the B2B market segments. As far as margin goes, we will continue to maintain tight control on spending. Our goal is to maintain a relatively flat or slightly improved gross profit margin compared to 2023 while we focus on growing revenue in both Taiwan and in international markets.
Unidentified Company Representative: Thank you, Bruce. At this time, operator, please open the line for Q&A session.
Operator: [Operator Instructions]
Unidentified Company Representative: While we’re waiting for participants to ask a question, I have an online question. In India, FAME II subsidies favors wire charging over battery swap. Can Gogoro offer two versions of your scooters, one that can swap batteries and the other version where customers own the battery with tethered charging that way Gogoro can qualify for FAME II?
Horace Luke: Okay, great question. The qualification for FAME II in India requires a number of parts to be executed, the first one being the vehicle having to be made in India with a supply chain that is in India. There is a long list of parts, and we’ve worked really diligently over the last year to enable a supply chain that’s unique to India within India to build the vehicle. And today, we’re already in the state of Maharashtra to manufacture the first vehicle, the Gogoro CrossOver GX250. And while the vehicle is ready, the next piece that needs to come into place is, you’re absolutely right, a charger is required, a tethered charger is required because the market is unfamiliar with battery swapping. And so in order to qualify for FAME II, our vehicle, as you have stated, will have a charging capability, however, with the usability of swapping.
