Datasea Inc (DTSS) Q4 2024 Earnings Report

Datasea Inc reported QQ4 2024 revenue of USD 4.3636 million, representing a YoY uplift of approximately 19% and a QoQ surge of about 216%, signaling early top-line momentum in Datasea’s targeted security software platforms in China. However, the quarter was characterized by a severe spread of operating losses driven by outsized selling, general, and administrative expenses, which culminated in an EBITDA of negative USD 5.29 million and a net loss of USD 5.38 million. The reported diluted EPS stood at USD -1.71 for the quarter.

From a balance sheet and cash flow perspective, Datasea demonstrated a constrained liquidity position: cash and cash equivalents were USD 0.181 million at period end, with short-term debt of USD 1.224 million and net debt of USD 1.043 million. Total current liabilities exceeded total current assets by a material margin, yielding a current ratio of 0.74 and a quick ratio near 0.69. Negative stockholders’ equity (-USD 0.237 million) underscores the structural leverage and ongoing erosion of book value, even as accumulated other comprehensive income sits at USD 0.242 million and intangible assets amount to USD 0.546 million. Free cash flow was negative USD 0.504 million, reflecting ongoing cash burn despite top-line growth. Management commentary (when available) would likely emphasize continued investment in security platforms (big data, 3D security, epidemic systems) and potential monetization via 5G messaging and smart payments, while signaling a path toward cost containment and margin improvement as the product mix scales.

Overall, the QQ4 2024 results depict a growth-but-loss operating profile typical of a technology company scaling in a competitive market. The key questions for investors center on whether Datasea can reduce the SG&A footprint, improve gross margins, and stabilize operating cash flow to transition toward breakeven profitability, while maintaining strategic momentum in its China-based smart security verticals.