Duos Technologies Group, Inc. (NASDAQ:DUOT) Q3 2022 Results Conference Call November 14, 2022 4:30 PM ET

Company Participants

Chuck Ferry - CEO

Adrian Goldfarb - CFO

Andrew Murphy - VP, FP&A

Conference Call Participants

Michael Latimore - Northland Capital Markets

Operator

Good afternoon. Welcome to Duos Technologies Third Quarter 2022 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry, Adrian Goldfarb, CFO; and Andrew Murphy, VP, FP&A. Following their remarks, we will open up the line for your questions. Then, before we conclude today's call, I'll provide the necessary cautions regarding the forward looking statements made by management during this call.

Now, I'd like to turn the call over to Duos's CFO, Chuck Ferry. Thank you, sir. Please go ahead.

Chuck Ferry

Welcome, everyone, and thank you for joining us. Earlier today, we issued a press release announcing our financial results for the third quarter as other operational highlights. A copy of the press release is available in the Investor Relations section of our website. I encourage all listeners to view that release, as well as our 10-Q filing with the SEC to better understand some of the details that we'll be discussing during our earnings call.

Now let's get started. In the third quarter, we delivered another double digit improvement in revenue performance, which adds some target to meet our financial and operating goals for the year. Revenues increased more than 130% year over year and are also up north of 10% on a sequential quarterly basis, reflecting the substantial completion of several railcar inspection portals and portal installations in Q3. We currently have two additional reps that are nearing completion with another two expected to come online early next year. Put together, we expect to have 15 rips installed by the end of the first half of 2023. Through this year's growth, we have continued to improve our installation procedures, in field performance and maintenance capabilities, all of which have improved customer satisfaction, leading to renewals, increased recurring revenue and add on sales opportunities.

Additionally, we are well underway with our plans to build, own and operate RIPs at strategic locations within the North American rail network. This new offering and pricing model will dramatically increase our potential customer base, while also improving margins and predictability of our revenues over the long term. As we continue to grow our solutions, we are aligning our organization's goals with the necessary experiences and resources to execute our mission. Our recent executive appointments, as well as the additions from our new industry advisory group had provided us with the deepest bench in our company's history to build the industry veterans capable of taking us to the next level.