BEIJING - Datasea Inc. (NASDAQ:DTSS), a company specializing in acoustics and 5G-AI multimodal communication technology, announced plans to enhance its acoustic business through new global manufacturing partnerships and product upgrades. The company's strategic initiatives aim to support a projected fiscal year 2024 revenue of approximately $86 million, which would mark a significant 1,128% increase from the previous year.
The updated product line includes advanced acoustic disinfection products, which the company expects will be instrumental in achieving its financial targets. Datasea's CEO, Ms. Zhixin Liu, expressed confidence in the company's ability to maintain robust sales volumes in both the U.S. and China, attributing this to the domestic success of their acoustic products and their recent entry into the U.S. market.
Datasea's technology focuses on leveraging ultrasonic waves for sterilization, targeting microorganisms including coronaviruses by disrupting their structure. The company's range of products encompasses air disinfection machines, dehumidifiers, sterilizers, and smart sleep aids, which are sold in China through various channels and are set to penetrate the U.S. market through partnerships and online retail platforms.
Furthermore, the company is exploring the application of sound wave technology in industrial fields such as ultrasonic precision processing and cleaning, with potential to improve efficiency and quality across multiple sectors. This expansion is supported by a market analysis predicting the ultrasonic welding sector alone to reach an estimated $513 million by 2025
This news is based on a press release statement from Datasea Inc.
InvestingPro Insights
Datasea Inc. (NASDAQ:DTSS) is navigating a transformative phase, as evidenced by its ambitious revenue target for the fiscal year 2024. The company's focus on enhancing its acoustic business and expanding product lines is mirrored in its recent financial metrics. According to InvestingPro data, Datasea boasts a remarkable revenue growth of 232.5% in the last twelve months as of Q2 2024, with an even more staggering quarterly revenue growth of 8532.71% in Q2 2024. This suggests a significant upward trajectory in the company's sales performance, aligning with the CEO's optimistic outlook.
However, investors should note that despite these impressive growth figures, the company's gross profit margin stands at a modest 1.92% for the same period, hinting at potential challenges in scaling its operations profitably. Additionally, the company's stock has experienced substantial price volatility, as indicated by a 1-week price total return of -12.69%, contrasted with a 1-month price total return of 290.78% as of the same date. This volatility may present both risks and opportunities for investors.
Two InvestingPro Tips for Datasea highlight critical considerations: the company is quickly burning through cash, and the stock has taken a significant hit over the last week. These insights suggest that while the company's growth prospects appear strong, there are underlying financial health concerns that investors should monitor closely.
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