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Datasea Inc. Reports Record Revenue for Fiscal Year 2025

Datasea Inc. (NASDAQ: DTSS) has recently revealed impressive financial results for the fiscal year ending June 30, 2025. The company reported a record revenue of $71.62 million, showcasing a tremendous 199% increase from $23.97 million in the previous fiscal year. This surge in revenue signifies a turning point in Datasea's journey as a high-tech enterprise, which specializes in acoustic high-tech products and AI multimodal digitalization.

Highlights of Financial Performance

The company's gross profit also saw a remarkable rise, soaring to $2.44 million, which marks a 415.5% increase from just $0.47 million the year before. Notably, in the fourth quarter, Datasea reached a pivotal net income breakeven, adjusted for non-cash depreciation and amortization expenses. This milestone emphasizes the company's shift toward achieving profitability, following a consistent pattern of growth.

Zhixin Liu, the CEO of Datasea, expressed pride in the company's performance and highlighted the sustained growth achieved through their distinct dual-engine business model. By enhancing both the AI multimodal digitalization segment and the acoustic high-tech segment, the company effectively expanded its market reach and improved profitability.

Business Segments Driving Growth

AI Multimodal Digitalization

During fiscal year 2025, the AI multimodal digitalization segment evidenced a 199.49% growth, contributing a substantial $70.68 million to total revenues. This achievement was propelled by the adoption of Datasea's proprietary AI platform, which facilitated the standardization of services while also offering customized solutions to clients across diverse industries. Key revenue streams came from high-margin customized solutions such as digital rural platforms and new media marketing systems, further enhancing the company's appeal in the market.

The client base grew significantly, increasing from eight to 15 large enterprises, with several of these contributing over $10 million each in annual revenue.

Acoustic High-Tech Innovations

Datasea's investment in acoustic high-tech has also paid off. Through embedded AI technologies, the company launched a variety of innovative products and applications. Significantly, the revenue from comprehensive acoustic solutions reached RMB 3.7 million ($0.5 million), showcasing a strategic shift towards high-margin products and services rather than solely focusing on hardware sales. The company's products have penetrated 463 beauty and health stores, reflecting its transition towards a robust B2B sales network.

Future Outlook

Looking ahead to fiscal year 2026 and beyond, Datasea is committed to further advancing the dual growth engines of AI multimodal digitalization and acoustic high-tech. Emphasizing the enhancement of its proprietary platform, the company aims to deliver more high-margin digital solutions while also expanding its recurring revenue through subscriptions and customized offers.

In the acoustic segment, Datasea plans to accelerate research and development in areas like acoustics and neuro-regulation, with applications set to advance into markets including healthcare through brain-computer interface developments.

The initiatives taken in China include broader penetration of acoustic products in healthcare and agricultural sectors, as well as acquisitions to bolster its market capabilities. Internationally, the launch of Datasea Acoustics LLC in the U.S. marks a strategic move towards expanding market reach and fostering technology partnerships in North America.

In conclusion, Datasea's fiscal year 2025 report not only showcases the company’s remarkable revenue growth and profitability but also sets a solid foundation for future expansion in diverse high-tech industries. With an innovative approach grounded in technology, Datasea is poised to maximize shareholder value and drive long-term sustainable growth.