Datasea (NASDAQ: DTSS) stock skyrocketed on Wednesday after the technology and information company reported massive revenue growth in its fiscal second quarter.
Datasea (DTSS) disclosed an impressive revenue of $11.3 million for the second quarter, a significant leap from $131,459 in the corresponding period last year.
CEO Zhixin Liu expressed immense satisfaction with the company’s phenomenal revenue growth, crediting it primarily to the surge in their 5G multimodal communication business in China.
Liu stated,
“The increase in revenue during the quarter was mainly due to an increase in our 5G multimodal communication business in China, where we signed several significant 5G multimodal communication service agreements. Our sales team vigorously and effectively promotes our products where we focus on the needs of our customers and constantly optimize and improve our products and services.”
The earnings report also revealed a positive trend in diluted earnings per share (EPS), improving from -$0.80 to -72 cents compared to last year.
For the six months, Datasea reported sales totaling $18.23 million, a substantial increase from $0.131459 million reported a year ago. The net loss narrowed to $1.86 million compared to $2.63 million in the same period last year. Basic loss per share from continuing operations improved to $0.82 compared to $1.62 a year ago, while diluted loss per share from continuing operations also improved to $0.82 compared to $1.62 a year ago.
Datasea (NASDAQ: DTSS) Stock Reaction
DTSS stock shot up 510.88% to close at $8.98 on Wednesday. The traders had exchanged hands with 87,906,927 (87.90 million) shares compared to the average daily trading volume of 69.65K.
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