Datasea Inc. (DTSS) is engaged in smart city, acoustic intelligence, and 5G messaging business. The company leverages facial recognition and other visual intelligence software along with acoustic and non-visual intelligence software, to provide smart city solutions. The company provides security services to residential areas, schools, and commercial enterprises.
The price of DTSS stock during the regular trading on February 11, 2022, was $1.62 with an increase of 10.9%. At last check in the aftermarket, the stock dipped by 7.41%.
DTSS: Key Financials
On February 11, 2022, DTSS released its financial results for three months period ended December 31, 2021. Some of the key points are discussed here.
Revenue
Revenue in the quarter of 2021 was $8.97 million versus $0.12 million in the same period of 2020. The company observed a phenomenal increase of $8.85 million or 7016% in revenue over the yearly period. The company beat the estimated revenue target by $5.88 million.
EPS
Basic and diluted net loss per share in the quarter of 2021 was $1.67 million or $0.07 against $0.96 million or $0.05 in the same quarter of 2020. The company’s EPS was in-line with the estimated target.
DTSS: Events and Happenings
On January 18, 2022, DTSS updated about its entry into a strategic collaboration with leading Chinese research institutes to unlock acoustic intelligence potential in commercial applications. The company released its inaugural white paper regarding the aforementioned subject.
On December 09, 2021, DTSS informed that its subsidiary had assisted ZTO Express with preliminary delivery order placement via 5G messaging services. On November 18, 2021, DTSS informed about the entry into a $378K procurement agreement by its subsidiary with China Mobile Communications Group Guangdong Co. The companies agreed upon providing Cloud Transformation Services to the consumers.
On October 18, 2021, DTSS reported that its subsidiary had entered a $4.67 million procurement agreement with Jiangxi Zhouwang Network Technology Co., Ltd. Both the companies agreed upon providing Short Message and 5G Multimedia Message Services to the customers.
Conclusion
DTSS stock downplayed by 17% in the last six months period due to pandemics impacting the economies. The current aftermarket stock dip is the likely outcome of the company’s financial statement release. Although the company beat the estimated revenue target and its EPS was in-line with the estimated figures, the company showed a declining stock trend. For the upcoming quarter, the analysts estimated the revenue in the range of $3.4 million
