Datasea Q3 revenue up 653.6% YoY to $10.4mln.

• DTSS reports Q3 revenue of $10.4mln, up 653.6% YoY • Revenue for first nine months of FY25 at $51.9mln, up 164.8% YoY • Growth driven by 5G+AI multimodal digital segment in China • Acoustic high-tech segment also contributes to growth

Datasea Inc. (NASDAQ: DTSS), a Nevada-based technology company specializing in 5G+AI multimodal digital solutions and acoustic high-tech innovations, announced its financial results for the third fiscal quarter ended March 31, 2025. The company reported revenue of $10.4 million, up 653.6% compared to $1.38 million for the same period of fiscal 2024 [1].

For the first nine months of the year, Datasea reported revenue of $51.9 million, up 164.8% compared to revenue of $19.6 million for the same period of fiscal year 2024 [1]. The significant growth was driven by the continued strong performance and market expansion of the company's 5G+AI multimodal digital segment in China, supported by its growing adoption across a spectrum of industries resulting in long-term customer contracts. Additionally, the company's acoustic high-tech products gained traction through strategic retail placement and new product innovation [1].

The company's gross profit for the third fiscal quarter of 2025 was $0.3 million and a gross margin of 2.9%, marking an improvement from the same period in the prior year when the company recorded gross profit of $0.01 million and a gross margin of 0.7% [1]. Despite the improvement in gross profit, the company reported a net loss of $1.8 million for the quarter, which was a significant improvement from the same period in the prior year when the company recorded a net loss of $4.1 million [1].

Datasea's cash balance increased by 378.2% to $0.9 million from fiscal year end 2024, and accounts receivable dropped by 93.2% to $0.05 million, improving capital turnover. The company's inventory was $0.32 million, an increase of 166.7% from fiscal year end 2024, which reflects the increase in customer orders from the acoustic high-tech business. The net value of intangible assets rose 596.9% to $3.8 million, underscoring the company's growing innovation capacity and long-term competitiveness [1].

The 5G+AI multimodal digital segment continues to be a leader in China's 5G+AI digital service sector. Notable developments during the third quarter include the generation of $38.3 million in revenue from Qingdao Ruizhi Yixing between July 1, 2024 and March 31, 2025, and active contracts with additional customers such as Shixun Network, Xiaoming Technology, Xinfanfa, and Jiajie Technology. Expansion into high-demand industry sectors including finance, healthcare, logistics, and beauty has also contributed to the segment's growth [1].

The company's acoustic high-tech segment continued to gain momentum in the third quarter. Acoustic products were placed in 463 beauty and health stores in Northern China, demonstrating the growing market acceptance of Datasea's acoustic high-tech products. New consumer-facing products, such as the "Tianer" Air Sterilizers and sleep-aid devices, were launched or are in development [1].

Datasea reaffirms its full fiscal year 2025 revenue guidance of approximately $90 million, representing a 275% increase over fiscal year 2024. This growth is expected to be fueled by existing 5G+AI multimodal digital communications long-term contracts and a revenue ramp attributable to the extensive placement of its acoustic high-tech products. The company also intends to drive profitability by continuing to scale its high-margin acoustic high-tech products and offering technical services through its core AI platform. It also plans to accelerate international market entry of the acoustic high-tech segment and expand its acoustic high-tech business through strategic partnerships and mergers & acquisitions [1].

References:
[1] Datasea Inc. (2025). Datasea Reports Third Fiscal Quarter 2025 Revenue of $10.4 Million Up 653.6% Year-over-Year. Retrieved from https://www.marketscreener.com/quote/stock/DATASEA-INC-49601893/news/Datasea-Reports-Third-Fiscal-Quarter-2025-Revenue-of-10-4-Million-Up-653-6-Year-over-Year-49966839/