Datasea(US:DTSS) Prnewswireยท2025-11-13 14:31Core Insights - Datasea Inc. is transitioning from scale expansion to profitability optimization, resulting in a strategic restructuring of its revenue mix towards high-value, technology-driven businesses [4][7] - The company's gross margin increased significantly to 8.46%, up 753 basis points from the previous year, due to a focus on high-margin AI multimodal and acoustic technology solutions [4][7] Financial Performance - Revenue for the first quarter of fiscal 2026 was $13.81 million, a decrease of 34.5% compared to $21.08 million in the same quarter of 2025, attributed to the strategic optimization of its high technology business [7] - Gross profit rose to $1.17 million, a 5.9x increase from $0.02 million in the first quarter of 2025, reflecting improved cost efficiencies and a focus on profitability [7] - The gross margin improvement is linked to higher contributions from high-margin 5G+AI multimodal digital solutions and acoustic technology products [7] Business Segments - The core revenue driver was the 5G+AI multimodal digital business, contributing $13.32 million during the quarter, benefiting from the expanding industry in China [8] - New vertical solutions generated revenue of approximately RMB 6.53 million (around $0.92 million), including AI multimodal services for SMEs and digital rural services, enhancing overall profitability [8] Strategic Outlook - Datasea aims to achieve sustainable profitability and enhance its gross margin profile through continuous innovation and the synergistic development of its two core businesses [9] - The company plans to upgrade its proprietary AI multimodal platform and expand high-margin customized solutions and SaaS-based subscription services [13] - In the acoustic high-tech segment, Datasea will focus on R&D in 'Acoustics + AI + Neuro-Regulation' to create new growth opportunities in non-pharmacological health management [13]