Smart Share Global Ltd. Reports Q3 2024 Earnings

Smart Share Global Ltd. Sponsored Adr ( (EM) ) has released its Q4 earnings. Here is a breakdown of the information Smart Share Global Ltd. Sponsored Adr presented to its investors.

Smart Share Global Limited, also known as Energy Monster, is a consumer technology company based in China, specializing in providing mobile device charging services through a vast network of shared power banks located in public spaces such as entertainment venues, restaurants, and transportation hubs.

In its third-quarter 2024 earnings report, Smart Share Global Limited reported a significant shift in its operational model, transitioning to a network partner model, which now accounts for 96.8% of its points of interest. Despite this strategic shift, the company experienced a decline in overall revenue compared to the previous year.

Key financial metrics from the report indicate that the company’s total revenue decreased by 20% year-over-year to RMB490.8 million, primarily due to a reduction in revenues from its direct model. However, revenues from the network partner model increased by 10.7%, driven by higher mobile device charging solution fees and related sales. The company also saw a substantial increase in other revenues, attributed to new business initiatives.

Despite the operational changes, Smart Share Global Limited faced challenges in maintaining profitability, with a net income of RMB4.2 million, significantly lower than the RMB49.0 million reported in the same quarter of the previous year. The company’s cost of revenues increased, reflecting the expenses associated with new business initiatives.

Looking forward, Smart Share Global Limited remains committed to its network partner model, aiming to enhance its service offerings and expand its user base, which currently stands at over 430 million registered users. The company continues to adapt its strategies to navigate the evolving market landscape and leverage its extensive network to drive future growth.