Smart Share Global (EM) Q3 2024 earnings summary

Executive summary

• Completed transition to network partner model, with 96.8% of POIs under this model as of September 30, 2024, up from 89.2% at June 30, 2024.

• Cumulative registered users reached 430.2 million, with 13.1 million new users in Q3 2024.

• Mobile device charging orders declined to 148.1 million in Q3 2024 from 176.5 million in Q3 2023.

• Services available at 1,274,000 POIs and 9.5 million power banks in circulation as of quarter end.

Financial highlights

• Q3 2024 revenue was RMB490.8 million ($69.9 million), down 20.0% year-over-year, mainly due to the shift away from the direct model.

• Mobile device charging revenue fell 34.8% year-over-year to RMB367.9 million.

• Network partner model revenue rose 10.7% year-over-year to RMB309.8 million, while direct model revenue dropped 79.6% to RMB58.0 million.

• Other revenues, mainly from new business and advertising, surged 149.4% to RMB122.9 million.

• Cost of revenues increased 38.5% year-over-year to RMB298.4 million, driven by new business initiatives and cabinet costs.

• Net income for Q3 2024 was RMB4.2 million ($0.6 million), down from RMB49.0 million a year ago.

• Non-GAAP adjusted net income was RMB9.2 million, compared to RMB54.2 million in Q3 2023.

Outlook and guidance

• Management highlights ongoing strategic focus on the network partner model and new business initiatives.

• Forward-looking statements note risks from competition, regulatory changes, and macroeconomic conditions.