Datasea Inc. (DTSS), a company providing smart security solutions in China, has experienced a plunge of 7.41% in aftermarket trading sessions and is trading at $1.5 with a trading volume of 20,640 at the time of the writing. During the last regular trading session, i.e. on Friday, the stock surged by 9.59% and closed the day at $1.6. The profit-taking factor could potentially be the reason for the aftermarket plunge in the stock. As for Friday’s surge, it came in wake of the quarterly results announcement.
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Q2 2022 Results
On Friday, DTSS announced the results for Q2 2022, which ended on 31st December. The revenue was $8.97 million for Q2 2022 compared to $0.12 million for Q2 2021. The gross profit for the quarter was $0.24 million against $86,070 for Q2 2021. The net loss for the period was $3.1 million (or $0.13 per share) compared to $1.8 million (or $0.09 per share) for the same quarter of the previous fiscal.
DTSS Business Highlights
DTSS also provided an update regarding the business highlight of the quarter. The company has been engaged by more than 100 institutional clients since 2021. During the said quarter, the company became a part of several contracts related to 5G IMMCP. The accumulated contract value exceeds $14 million. Alongside, the company has also started gaining industry recognition as apparent from its cooperation with ZTO express and National Engineering Laboratory for Logistics Information Technology.
Zhixin Liu, CEO of DTSS, while commenting on the development said that as a result of the solid quarter, the company’s business has started to demonstrate the capability to improve its competitiveness. Alongside, the company would aim to create some new sources for increasing revenue inflow. The main goal of the company is to shift a focus toward sustainable development and its integration into every business decision is in progress.
Future Outlook for DTSS
Looking towards the future, analysts believe that even though DTSS stock has got several positive technical indicators at this point, they are not enough for the stock to be considered for buying. Hence, at the moment, the stock should be considered a hold candidate.