Datasea Inc. Reports Q1 2024 Financial Results

Datasea Inc., a leading provider of 5G messaging services and smart city solutions in the People's Republic of China (PRC), has released its Form 10-Q report for the first quarter of 2024. The report highlights significant financial and operational developments, reflecting the company's ongoing efforts to expand its market presence and enhance its product offerings.

Financial Highlights

• Revenues: $1.38 million for the three months ended March 31, 2024, compared to $0.08 million for the same period in 2023, indicating a significant increase in sales.
• Gross Profit: $0.01 million for the three months ended March 31, 2024, compared to $0.07 million for the same period in 2023, reflecting a decrease in profitability despite increased revenues.
• Loss from Operations: $(4.11) million for the three months ended March 31, 2024, compared to $(0.87) million for the same period in 2023, highlighting increased operational losses.
• Net Loss to the Company: $(4.14) million for the three months ended March 31, 2024, compared to $(1.30) million for the same period in 2023, showing a widening net loss.
• Basic and Diluted Net Loss Per Share: $(1.55) for the three months ended March 31, 2024, compared to $(0.80) for the same period in 2023, indicating a higher loss per share.

Business Highlights

• Revenue Segments: The company derives its revenues from product sales and 5G messaging service contracts, with revenues recognized upon delivery of services and products. The primary revenue streams include 5G AI Multimodal communication, Acoustic Intelligence Business, and Smart City business.
• Geographical Performance: All of the company’s customers are located in the People's Republic of China (PRC), and all revenues for the reporting period were generated from this region. This indicates a concentrated market presence in the PRC.
• Sales Units: The company reported significant sales in 5G AI Multimodal communication, which is a major contributor to its revenue streams.
• New Product Launches: The company has been actively promoting its acoustic intelligence series products both in domestic and overseas markets through strategic partnerships.
• Future Outlook: Management is focused on generating sufficient revenues and raising additional funds to support research and development, procurement, marketing, and daily operations. The company is exploring strategic investor opportunities and public or private offerings to enhance its financial position.

SEC Filing: Datasea Inc. Reports Q1 2024 Financial Results [ NASDAQ:DTSS ] - 10-Q - May. 13, 2024