Smart Share Q1 Earnings Beats Estimates, Sees Growth In Mobile Charging Industry

Smart Share Global Limited EM reported first-quarter 2023 revenues of $119.81 million, beating the analyst consensus of $114.09 million. The company reported adjusted EPS of $0.01, beating the Street view of ($0.02) loss. 

The Street-beating performance was on the back of normalizing offline traffic in China, which helped the company reach a scale covering fixed costs and expenses. Smart Share is also gaining from the cost-efficiency initiatives taken last year. 

Revenues from power bank sales increased by 43.7% to RMB18.6 million in Q1. Net income in Q1 was RMB10.8 million, compared to a net loss of RMB96.4 million a year ago. 

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"We are proud to announce that the number of POI has exceeded one million for the very first time," said Peifeng Xu, Chief Operating Officer. "For our network partner model, we will leverage our brand- and partner-oriented values to attract high-quality network partners and provide the necessary tools and support to unlock their growth potential," Xu added.

As of March 31, 2023, the company had cash and equivalents worth RMB3.1 billion. 

"The strength of our financials, both in terms of our strong cash position and positive cash flow, provides us with the financial stability necessary to capture the growth of the mobile device charging service industry as well as strategically expand into new initiatives that can leverage Energy Monster's advantages," said Mars Guangyuan Cai, Chairman, and Chief Executive Officer.

Appointment Of New Director: Smart Share announced that the board of Directors had approved the appointment of Ms. Chen Shen as a director of the Company as Xiao Xiao has tendered her resignation.

Price Action: EM shares are trading flat at $0.95 on the last check Tuesday.