Smart Share Global (EM) Q1 2024 earnings summary

Executive summary

• POIs under the network partner model rose to 79.7% as of March 31, 2024, up from 59% a year ago and 72.8% at year-end 2023.

• Cumulative registered users reached 404.3 million, with 12.8 million new users added in Q1 2024.

• Mobile device charging orders totaled 147.0 million in Q1 2024, down from 153.2 million in Q1 2023.

• Expansion in lower-tier cities drove a 4% year-over-year GMV increase, while higher-tier cities saw declines.

• Achieved fifth consecutive quarter of non-GAAP profitability since the pandemic.

Financial highlights

• Q1 2024 revenues were RMB 397.2 million, down 51.7% year-over-year, mainly due to contractual changes with network partners.

• Mobile device charging revenues were RMB 378.1 million (95.2% of total), down 53.5% YoY.

• Direct model revenues were RMB 155.2 million (down 45.1% YoY); network partner model revenues were RMB 222.9 million (down 58% YoY).

• Gross profit fell 37% year-over-year to RMB 229.5 million.

• Net loss was RMB 0.3 million (net margin -0.1%), with non-GAAP net income at RMB 3.8 million, down from RMB 17.1 million YoY.

Outlook and guidance

• No formal guidance provided; management remains optimistic about long-term sector growth and expects the network partner model transition to deliver substantial economic benefits.

• New renewable energy initiatives are in early stages, with potential for meaningful financial impact in the second half of the year.