Datasea Pre-Announces First Half 2024 Revenue of $18.2 Million, a 1,037.5% Year-Over-Year Increase

Rhea-AI Summary

Datasea Inc. (DTSS) expects a revenue of approximately $18.2 million for the first six months ended December 31, 2023, marking a significant increase of 1,037.5% compared to the same period in the previous fiscal year. The company's 5G messaging business is showing promising growth, and its Acoustic Intelligence business is gaining traction in the marketplace. However, the preliminary results are subject to change as the company finalizes its financial statements.

Market Research Analyst

Examining the explosive growth rate of 1,037.5% in revenue for Datasea Inc. is indicative of a significant market traction in its business segments, specifically in intelligent acoustics and 5G messaging technology. Such growth is exceptional, especially in the technology sector where competition is fierce and innovation cycles are rapid. The reported increase, which is also 160% higher than the full previous fiscal year, suggests that the company has effectively capitalized on market opportunities and possibly achieved a competitive edge.

The strong performance in the 5G messaging business, as noted by the CEO, could be a result of the strategic contracts signed in the previous year. This implies a robust sales pipeline and an effective business development strategy. Furthermore, the mention of progress in the Acoustic Intelligence business hints at a successful diversification strategy, which could mitigate risks associated with reliance on a single product line or market segment.

However, investors should exercise caution. The financial results are preliminary and subject to change. Material adjustments post the quarter and year-end closing procedures could alter the financial outlook significantly. It is also important to consider the broader economic context in China, including regulatory risks and competitive dynamics, which could impact the company's future performance.

Financial Analyst

The preliminary revenue announcement by Datasea Inc. is likely to stir investor interest due to the stark contrast with the previous year's figures. An increase of $16.6 million signifies not just growth but a potential shift in the company's market position. For investors, this could translate into a reevaluation of the company's valuation, factoring in the scalability of its products and the sustainability of such growth rates.

Considering the financial disclosure advisory, it is crucial to note the tentative nature of these figures. The final financial statements, due on February 14, could reveal adjustments that may affect the stock's performance. Investors should also be aware of the volatility associated with such high growth rates. While they can lead to significant returns, they also raise questions about the company's ability to maintain this momentum in the long term, manage operational challenges and continue innovating in a highly competitive sector.

From a financial perspective, the results suggest strong operational execution and an effective go-to-market strategy. However, the lack of detailed financial metrics such as profit margins, cash flow and debt levels leaves gaps in assessing the company's financial health. These metrics will be critical in understanding whether the revenue growth is translating into profitability and financial stability.

Technology Industry Analyst

The sectors Datasea operates in, particularly 5G messaging and intelligent acoustics, are at the forefront of technological innovation and have been experiencing rapid growth. The company's reported revenue increase is a testament to the burgeoning demand for advanced communication and smart living solutions in China. This aligns with the global trend towards IoT and smart cities, where such technologies are increasingly becoming integral.

It is also worth noting the strategic importance of the Chinese market in the technology sector, which is characterized by high consumer adoption rates and government support for technological advancements. Datasea's success in this market could be indicative of its alignment with these trends and the effectiveness of its technology in meeting market needs.

However, the technology sector is also subject to rapid changes in consumer preferences and technology standards. Datasea's future growth will depend on its ability to continue innovating and adapting to these changes. Investors should consider the company's R&D capabilities, intellectual property portfolio and the scalability of its technology when assessing its long-term prospects.

BEIJING, Jan. 23, 2024 /PRNewswire/ -- Datasea Inc., (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada incorporated digital technology corporation engaged in converging and innovative business segments for intelligent acoustics and 5G messaging technology in China pre-announced that its revenue for the first six months, ended December 31, 2023, of its fiscal year ended June 30, 2024, is expected to be approximately $18.2 million. This would represent an increase of approximately $16.6 million and growth of approximately 1,037.5% as compared to approximately $1.6 million in revenue that the Company recorded for first half of its fiscal year ended June 30, 2023. This is also approximately 160% higher than the approximately $7.0 million in revenue recorded for the full fiscal year ended June 30, 2023.

"Our 5G messaging business continues to build upon its first quarter results bolstered by contracts we signed beginning in June 2023. We expect further momentum for this business segment going forward," commented Datasea CEO Ms. Zhixin Liu. "We are also pleased that our Acoustic Intelligence business, whose products create healthier and safer living environments are gaining traction in the marketplace as our marketing and sales programs are making progress."

Financial Disclosure Advisory

The preliminary results for the six-month period ended December 31, 2023, are an estimate, based on information available to management as of the date of this release, and are subject to further changes upon completion of the Company's standard quarter and year-end closing procedures. This update does not present all necessary information for an understanding of Datasea's financial condition as of the date of this release, or its results of operations for the six-month period ended December 31, 2023. As Datasea completes its quarter-end financial close process and finalizes its financial statements for the quarter, it will be required to make significant judgments in a number of areas. It is possible that Datasea may identify items that require it to make adjustments to the preliminary financial information set forth above and those changes could be material. Datasea does not intend to update such financial information prior to release of its final second quarter financial statement information, which is currently scheduled for February 14, 2024.

About Datasea Inc.

Datasea is a leading provider of products, services, and solutions for enterprise and retail customers in converging and innovative industries, intelligent acoustics and 5G messaging, especially focusing on ultrasonic, infrasound and directional sound technology. The Company's advanced research and development technology serves as the core infrastructure and backbone for its products. Its 5G Messaging segment operates on a cloud platform based on artificial intelligence. Datasea leverages cutting-edge technologies in intelligent acoustics, utilizing ultrasonic sterilization to combat viruses and prevent human infections, and is also developing innovations in directional sound and medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to mark its global presence. This underlies Datasea's commitment to intelligent acoustics and its intent to offer cutting-edge acoustic solutions to the U.S. market. For additional information, please visit: www.dataseainc.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements  (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor and Media Contact: 

Datasea Inc. Investor relations
Email:  investorrelations@shuhaixinxi.com

Precept Investor Relations LLC

David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

 

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SOURCE Datasea Inc.

What is Datasea Inc.'s expected revenue for the first six months ended December 31, 2023?

Datasea Inc. expects a revenue of approximately $18.2 million for the first six months ended December 31, 2023.

What is the expected revenue increase compared to the previous fiscal year?

The expected revenue increase is approximately 1,037.5% compared to the same period in the previous fiscal year.

What business segments is Datasea Inc. engaged in?

Datasea Inc. is engaged in converging and innovative business segments for intelligent acoustics and 5G messaging technology in China.

Who is the CEO of Datasea Inc.?

Datasea CEO is Ms. Zhixin Liu.

When is Datasea Inc.'s final second quarter financial statement information scheduled for release?

Datasea Inc.'s final second quarter financial statement information is currently scheduled for release on February 14, 2024.