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Smart Share Global Limited Announces Third Quarter 2024 Results
EMenergy monster(EM) GlobeNewswire·2025-03-06 12:30

Core Viewpoint - Smart Share Global Limited, also known as Energy Monster, reported a significant shift in its business model towards a network partner model, resulting in a decrease in revenues for the third quarter of 2024 compared to the same period in 2023. Financial Results - Revenues for Q3 2024 were RMB490.8 million (US69.9million),a20.069.9 million), a 20.0% decrease from Q3 2023 [2] - Mobile device charging revenues decreased by 34.8% to RMB367.9 million (US52.4 million) for Q3 2024 from RMB564.2 million in Q3 2023 [11] - Revenues generated under the network partner model increased by 10.7% to RMB309.8 million for Q3 2024, while revenues from the direct model decreased by 79.6% to RMB58.0 million [11] Cost and Expenses - Cost of revenues increased by 38.5% to RMB298.4 million (US42.5million)inQ32024,primarilyduetonewbusinessinitiativesandcostsassociatedwithcabinetssold[3]−Researchanddevelopmentexpensesdecreasedby15.842.5 million) in Q3 2024, primarily due to new business initiatives and costs associated with cabinets sold [3] - Research and development expenses decreased by 15.8% to RMB20.0 million (US2.9 million) [4] - Sales and marketing expenses decreased by 51.8% to RMB142.6 million (US20.3million)[5]−Generalandadministrativeexpensesincreasedby10.020.3 million) [5] - General and administrative expenses increased by 10.0% to RMB41.6 million (US5.9 million) [6] Profitability - Loss from operations for Q3 2024 was RMB5.1 million (US0.7million),comparedtoanincomefromoperationsofRMB33.4millioninQ32023[6]−NetincomeforQ32024wasRMB4.2million(US0.7 million), compared to an income from operations of RMB33.4 million in Q3 2023 [6] - Net income for Q3 2024 was RMB4.2 million (US0.6 million), down from RMB49.0 million in the same period last year [7][8] - Non-GAAP adjusted net income for Q3 2024 was RMB9.2 million (US1.3million),comparedtoRMB54.2millioninQ32023[7]UserandOperationalMetrics−Cumulativeregisteredusersreached430.2millionasofSeptember30,2024,with13.1millionnewusersacquiredduringthequarter[11]−ThenumberofPointsofInterest(POIs)operatedunderthenetworkpartnermodelreached96.81.3 million), compared to RMB54.2 million in Q3 2023 [7] User and Operational Metrics - Cumulative registered users reached 430.2 million as of September 30, 2024, with 13.1 million new users acquired during the quarter [11] - The number of Points of Interest (POIs) operated under the network partner model reached 96.8% as of the end of Q3 2024, up from 89.2% as of June 30, 2024 [11] - The company had 1,274 thousand POIs and 9.5 million available power banks as of September 30, 2024 [12] Business Transition - The company successfully completed its transition to the network partner model during Q3 2024, which is reflected in the retrospective review of the model throughout the transition period [11] - Other revenues, primarily from new business initiatives and advertising services, increased by 149.4% to RMB122.9 million (US17.5 million) for Q3 2024 [11]