Datasea Inc (DTSS) reported a challenging QQ3 2024, with revenue of $1.383 million and a continued material net loss. Revenue fell 22.6% year over year and 87.8% quarter over quarter, signaling a fragile top line as the company cycles through costly operating activities. Gross profit was negative at $0.126 million, and EBITDA stood at $(3.97) million, driving an operating loss of $(4.11) million and a net loss of $(4.14) million for the quarter. The company also burned cash, with cash from operations at $(0.34) million and free cash flow at $(0.37) million, ending the period with only about $52.5k in cash and cash equivalents. Management commentary from the QQ3 2024 earnings call is not provided in the data set, limiting qualitative insight into strategic pivots or near-term guidance.
The trailing four-quarter revenue runs roughly in the mid-$20s million, suggesting a small-scale business with outsized overhead relative to current top-line scale. The balance sheet shows limited liquidity (cash ratio ~0.024) and a significant accumulation of negative retained earnings, raising financing risk if operating losses persist. On a relative basis, Datasea’s valuation metrics (negative earnings, P/S and P/B indicating re-rating challenges) contrast sharply with several peers, signaling a high-risk, high-uncertainty investment profile until a clear path to profitability and sustainable cash generation emerges. Investors should monitor revenue acceleration in core security offerings, cost containment, and the potential need for additional capital to fund ongoing losses.