DSC (NASDAQ:DSC) Announces Quarterly Earnings Results

DSC (NASDAQ:DSC) announced its quarterly earnings results on Wednesday. The company reported ($0.02) EPS for the quarter, Zacks reports. The business had revenue of $24.62 million for the quarter.

Here are the key takeaways from DSC’s conference call:

• Revenue increased 3.7% year over year and 14% sequentially in Q2, while adjusted net loss narrowed 61.5% to RMB 7.2 million as operating expenses declined across G&A, sales and marketing, and R&D.
• AI adoption accelerated, with more than 4,100 dealerships using AI tools and 3,215 paying deployments of the social-media operations assistant by the end of June; management said internal AI adoption also helped reduce staffing-related costs.
• Despite industry stress, DaFengChe maintained more than 65,000 active dealerships and nearly 200,000 active user accounts, while DSC monetized over 9,000 dealerships and 214,000 transaction services during the quarter.
• China’s used-car market remains highly pressured by new-car price competition, with mainstream used-car inventory values falling 10%–15% in two months and more than 70% of dealers reportedly operating at a loss; dealership MAU declined modestly from Q1.
• DSC is cautiously exploring international opportunities as genuine Chinese used-car exports surge, but management provided no specific financial targets or timeline for overseas expansion, AI monetization, revenue growth, or margins.

DSC Trading Down 5.6%

Shares of NASDAQ:DSC opened at $8.49 on Friday. The company’s 50-day moving average is $6.64. DSC has a 12-month low of $4.52 and a 12-month high of $16.35.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on DSC shares. Wall Street Zen upgraded DSC to a “hold” rating in a research report on Saturday, July 4th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of DSC in a research note on Monday, July 27th. They set a “buy” rating and a $12.00 price target on the stock. One research analyst has rated the stock with a Buy rating, According to MarketBeat, the stock has an average rating of “Buy” and an average price target of $12.00.

DSC Company Profile

DSC Holdings Ltd. is an AI application infrastructure for used car industry. Its services engage and benefit of dealers collaborators such as inspectors, transporters and other internet platforms, creating an ecosystem with used car dealers at its center. DSC Holdings Ltd. is based in BEIJING.