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Datasea Inc. Reports Remarkable Financial Results for Q3 FY2025

In an impressive milestone, Datasea Inc. (NASDAQ: DTSS), a technology firm based in Nevada, disclosed its financial outcomes for the third fiscal quarter ending March 31, 2025. The company reported a staggering revenue of $10.4 million, reflecting a remarkable 653.6% growth from the $1.38 million reported in the same period last year. This dramatic rise is primarily attributed to the robust performance of its 5G and AI multimodal digital solutions and the expanded use of its acoustic high-tech innovations across various sectors.

As the company embraces ongoing growth, it recorded total revenues reaching $51.9 million for the initial nine months of the fiscal year, up 164.8% compared to revenues of $19.6 million from the same timeframe in 2024. Ms. Zhixin Liu, the CEO of Datasea, stated, 'We are thrilled to report this substantial year-over-year revenue increase. The growth in revenue this quarter has been propelled by the persistent strong performance and market expansion of our 5G+AI multimodal digital segment in China, along with its adoption across diverse industries.'

Financial Highlights

The financial report details reveal significant shifts in the company's operations. The gross profit for Q3 FY2025 was around $0.3 million, demonstrating an improvement in gross margin to 2.9% from the previous year's gross profit of only $0.01 million and a mere 0.7% margin.

Despite recording a net loss of $1.8 million for the most recent quarter, this reflects significant strides compared to the larger loss of $4.1 million recorded during Q3 FY2024. Improving metrics suggest a strengthening operational framework and foresight to execute long-term contracts.

Upswing in the company's cash balance is noteworthy, with cash reserves showing a remarkable increase of 378.2%, rising to $0.9 million compared to fiscal year-end 2024, while accounts receivable sharply declined by 93.2% to $0.05 million. This decline indicates enhanced capital efficiency and operational diligence. Furthermore, inventory rose to $0.32 million, showcasing a 166.7% increase due to the heightened customer orders for Datasea's innovative acoustic products. The rise in the company’s intangible assets by 596.9% to $3.8 million strongly reflects its expanding capacity for innovation and long-term market presence.

Business Segment Insights

5G+AI Multimodal Digital Domain

Datasea continues to assert its leadership within China's 5G+AI digital service realm. The revenue generation from their collaboration with Qingdao Ruizhi Yixing has complied with $38.3 million between July 2024 and March 2025, alongside various additional contracts with several other firms including Shixun Network and Xiaoming Technology.

The company's alignment with high-demand sectors such as finance, healthcare, logistics, and beauty marks an escalating trend toward digital integration across numerous industries. Their tech platforms now enable SaaS-based services to over 52 million enterprises and 124 million individual business owners in China, signifying the broad reach of its innovations.

Acoustic High-Tech Unit Growth

The Acoustic + AI product ecosystem of Datasea recorded substantial traction in the third quarter, with thermal products strategically placed in 463 beauty and health stores across Northern China. This placement underlines the growing market acceptance and success of their acoustic high-tech innovations, particularly within the beauty and body care industries. New consumer products, such as the Tianer Air Sterilizers and sleep-aid devices, are either launched or in the pipeline, further demonstrating the company’s commitment to innovation.

Future Prospects

Looking ahead, Datasea is optimistic about achieving its full fiscal year 2025 revenue projection of around $90 million, translating to a 275% increase compared to the previous fiscal year. This growth is anticipated through ongoing long-term contracts alongside innovative placement strategies for acoustic high-tech products.

To promote profitability, the company intends to amplify its focus on expanding high-margin acoustic solutions while also leveraging technical services using its core AI platforms. Furthermore, Datasea plans to accelerate its entry into international markets and enhance its acoustic high-tech sector through strategic partnerships and acquisitions.

In conclusion, Datasea Inc. has showcased impressive growth in Q3 FY2025, positioning itself as a formidable player in the technology landscape. With its innovative approach and market expansion strategies, Datasea remains poised for future success.