Revenue contracted by 24.7% year-over-year to $613.5 million in 2023Q3, while gross margins remain highly volatile, fluctuating between 35.5% and 84.6% over the last five quarters.
| Sales/Revenue | 3.07B | 1.89B | 2.96B | 2.84B | 3.59B | 2.81B | 2.02B |
| Revenue Growth % | - | -35.97% | 4.24% | -20.84% | 27.62% | 38.92% | - |
| Cost of Goods Sold | 1.15B | 1.09B | 1.21B | 556.92M | 557.18M | 430.77M | 292.49M |
| COGS % of Revenue | - | 57.58% | 40.88% | 19.62% | 15.54% | 15.33% | 14.46% |
| Gross Profit | 1.92B | 803.63M | 1.75B | 2.28B | 3.03B | 2.38B | 1.73B |
| Gross Margin % | 62.44% | 42.42% | 59.12% | 80.38% | 84.46% | 84.67% | 85.54% |
| Gross Profit Growth % | - | -54.06% | -23.32% | -24.67% | 27.31% | 37.51% | - |
| Operating Expenses | 2.12B | 874.8M | 1.75B | 2.9B | 3.14B | 2.25B | 1.5B |
| OpEx % of Revenue | - | 46.18% | 59.16% | 102.27% | 87.5% | 79.97% | 74.06% |
| Selling, General & Admin | 2.01B | 774.06M | 1.63B | 2.82B | 3.07B | 2.2B | 1.44B |
| SG&A % of Revenue | - | 40.86% | 55.19% | 99.53% | 85.62% | 78.33% | 71.43% |
| Research & Development | 79.46M | 82.88M | 91.46M | 90.66M | 93.88M | 70.94M | 65.47M |
| R&D % of Revenue | - | 4.38% | 3.09% | 3.19% | 2.62% | 2.53% | 3.24% |
| Other Operating Expenses | 2M | 17.86M | 25.83M | -12.88M | -26.61M | -24.79M | -12.35M |
| Operating Income | -202.73M | -71.17M | -1.06M | -621.25M | -109M | 131.83M | 232.06M |
| Operating Margin % | -6.61% | -3.76% | -0.04% | -21.89% | -3.04% | 4.69% | 11.47% |
| Operating Income Growth % | - | -6582.44% | 99.83% | -469.95% | -182.68% | -43.19% | - |
| EBITDA | -106.04M | 86.7M | 274.24M | -172.18M | 287.91M | 475.21M | 426.22M |
| EBITDA Margin % | -3.46% | 4.58% | 9.27% | -6.07% | 8.03% | 16.92% | 21.08% |
| EBITDA Growth % | - | -68.38% | 259.27% | -159.81% | -39.42% | 11.5% | - |
| D&A (Non-Cash Add-back) | 0 | 157.87M | 275.3M | 449.06M | 396.91M | 343.38M | 194.16M |
| EBIT | -106.04M | 38.21M | 112.99M | -565.48M | -86.56M | 134.62M | 239.4M |
| Net Interest Income | 88.81M | 112.98M | 113.02M | 21.11M | -7.49M | -30.36M | -16.78M |
| Interest Income | 97.66M | 112.98M | 117.25M | 52.39M | 30.56M | 10.27M | 10.18M |
| Interest Expense | 8.85M | 0 | 4.23M | 31.28M | 38.05M | 40.63M | 26.96M |
| Other Income/Expense | 87.84M | 109.38M | 109.83M | 24.48M | -15.62M | -37.84M | -19.63M |
| Pretax Income | -114.89M | 38.21M | 108.76M | -596.76M | -124.61M | 93.99M | 212.44M |
| Pretax Margin % | -3.75% | 2.02% | 3.68% | -21.03% | -3.48% | 3.35% | 10.5% |
| Income Tax | 135.32M | 51.74M | 21.02M | 114.48M | 0 | 18.56M | 45.83M |
| Effective Tax Rate % | -117.79% | 135.42% | 19.33% | -19.18% | 0% | 19.75% | 21.57% |
| Net Income | -250.21M | -13.53M | 87.74M | -711.24M | -124.61M | 75.43M | 166.61M |
| Net Margin % | -8.16% | -0.71% | 2.97% | -25.06% | -3.48% | 2.68% | 8.24% |
| Net Income Growth % | - | -115.42% | 112.34% | -470.75% | -265.21% | -54.73% | - |
| Net Income (Continuing) | -250.21M | -13.53M | 87.74M | -711.24M | -124.61M | 75.43M | 166.61M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.92 | -0.11 | 0.68 | -5.58 | -48.16 | -23.74 | -2.12 |
| EPS Growth % | - | -116.18% | 112.19% | 88.41% | -102.86% | -1019.81% | - |
| EPS (Basic) | - | -0.11 | 0.68 | -5.58 | -48.16 | -23.74 | -2.12 |
| Diluted Shares Outstanding | 130.02M | 127.84M | 129.95M | 129.58M | 101.64M | 124.72M | 124.72M |
| Basic Shares Outstanding | 130.02M | 127.84M | 129.95M | 129.58M | 101.64M | 124.72M | 124.72M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Structural demand and competition
As indicated by the most recent quarterly data, Smart Share Global experienced a significant revenue decline to $613.5 million in 2023Q3, representing a sharp 24.7% year-over-year contraction that highlights the company's struggle to maintain its footprint in a highly competitive and saturated Chinese consumer market.
The consistent downward trend in top-line performance suggests that the company's reliance on high-traffic POIs is facing diminishing returns. Investors should monitor whether this decline is a temporary cyclical adjustment or a structural shift in consumer behavior regarding mobile charging accessibility.
Based on the provided financial statements, gross margins have exhibited extreme volatility, swinging from a high of 84.6% in 2022Q3 to a low of 35.5% in 2023Q2, which underscores the sensitivity of the business model to fluctuating partner incentive fees and hardware depreciation.
This margin instability suggests that the company lacks meaningful pricing power, as it is forced to absorb higher costs to secure or maintain prime locations. The inability to stabilize these margins indicates that the underlying unit economics remain highly vulnerable to competitive bidding for venue space.
According to reported figures, the company's operating income has struggled to maintain consistency, with 2022Q4 showing a massive $233.9 million loss, suggesting that SG&A expenses are not scaling efficiently relative to the revenue generated by the power bank rental fleet.
The persistent gap between gross profit and operating income implies that the company is burdened by high fixed overheads that do not contract in line with revenue. This lack of operating leverage warrants further investigation into whether the current cost structure can ever support sustainable profitability.
Financial data reveals that SG&A expenses remain disproportionately high, often exceeding $600 million per quarter, which effectively offsets the gross profit generated and prevents the company from achieving consistent bottom-line growth despite its significant market presence in the Chinese consumer services sector.
The high level of SG&A spending appears to be a defensive necessity to maintain market share, yet it creates a structural barrier to profitability. Management's inability to rationalize these costs suggests that the business model may be fundamentally over-indexed on expensive customer and partner acquisition strategies.
While the company maintains a robust balance sheet with zero debt, the persistent negative operating margins in several periods suggest that the $787 million cash pile is being slowly eroded by an unsustainable business model that fails to generate consistent organic cash flow from operations.
Short-sellers would likely focus on the discrepancy between the company's cash-rich balance sheet and its deteriorating operational performance. This suggests that the current valuation may be supported more by liquidity than by the underlying viability of the core charging service.
Quick answers to the most common questions about buying EM stock.
For fiscal year 2024, Smart Share Global Limited (EM) reported total revenue of $1.89B. This represents a 6.3% decline compared to $2.02B in 2019.
Smart Share Global Limited (EM) reported a net loss of $13.5M for the fiscal year ending 2024.
Smart Share Global Limited (EM) reported an operating income of $-71.2M, resulting in an operating profit margin of -3.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Smart Share Global Limited (EM) generated $803.6M in gross profit for the year, representing a gross profit margin of 42.4%. This demonstrates the company's core pricing power and production efficiency.