Smart Share Global Q2 Revenue Tops Consensus, Expects Headwinds To Continue In Q3

Smart Share Global Ltd EM reported second-quarter FY21 revenue growth of 52.9% year-on-year, to RMB972.4 million ($150.60 million), beating the consensus of $149.84 million.
Revenues from the mobile device charging business rose by 51.6% Y/Y to RMB931.6 million ($144.3 million).
Revenues from power bank sales increased by 83.2% Y/Y to RMB31.6 million ($4.9 million).
Cost of revenues increased by 44.8% primarily due to the increase in operational scale resulting in higher maintenance cost, disposal cost, and logistics expenses.
The operating margin was 1.9%, and operating income for the quarter fell 52% to RMB18.8 million ($2.9 million).
The company held RMB 3.1 billion ($476.1 million) in cash and equivalents as of June 30, 2021.
EPS for the quarter was $0.01. The adjusted net income was RMB17.2 million ($2.7 million).
Outlook: Smart Share Global sees Q3 FY21 revenue of RMB900 million - RMB930 million.
"Looking into the third quarter, we continue to see headwinds that will impact what traditionally has been the peak quarter of the year," said CFO Maria Yi Xin.
Price Action: EM shares are trading lower by 2.11% at $2.78 on the last check Monday.

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