Smart Share Global Ltd (NASDAQ:EM) stock fell 0.32% (As on June 21, 11:22:10 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23 on the back of normalizing offline traffic in China, which helped the company reach a scale covering fixed costs and expenses. Net income for the first quarter of 2023 was RMB10.8 million, compared to a net loss of RMB96.4 million in the same period last year and a net loss of RMB334.5 million for the fourth quarter of 2022. As of March 31, 2023, the Company’s services were available in 1,001 thousand POIs, compared with 997 thousand as of December 31, 2022. As of March 31, 2023, 58.8% of POIs were operated through our network partner model, compared with 52.5% as of December 31, 2022. As of March 31, 2023, the Company’s available-for-use power banks² were 7.2 million, compared with 6.7 million as of December 31, 2022. As of March 31, 2023, cumulative registered users reached 347.2 million, with 13.5 million newly registered users acquired during the quarter.

EM in the first quarter of FY 23 has reported the adjusted earnings per share of 1 cent, beating the analysts’ estimates for the adjusted loss per share of 2 cents. The company had reported the adjusted revenue growth of 11.6 percent to $119.81 million in the first quarter of FY 23, beating the analysts’ estimates for revenue of $114.09 million.

Moreover, Revenues from mobile device charging business increased by 10.7% to RMB794.5 million (US$115.7 million) for the first quarter of 2023. The increase was primarily due to the general recovery in offline foot traffic in China during the quarter. Revenues from power bank sales increased by 43.7% to RMB18.6 million (US$2.7 million) for the first quarter of 2023 from RMB12.9 million in the same period of 2022. The increase was primarily due to the general recovery in offline foot traffic in China during the quarter. Revenues from other revenues, which mainly comprise of revenue from advertising services and new business initiatives, increased by 52.8% to RMB9.8 million (US$1.4 million) for the first quarter of 2023 from RMB6.4 million in the same period of 2022. The increase was primarily attributable to the increase in user traffic from the general recovery in offline foot traffic in China during the quarter and the increase in advertisement efficiency.