Duos Technologies Group, Inc. (NASDAQ:DUOT) Q3 2023 Earnings Conference Call November 14, 2023 4:30 PM ET
Company Participants
Chuck Ferry - Chief Executive Officer
Andrew Murphy - Chief Financial Officer
Conference Call Participants
Owen Rickert - Northland Securities
Operator
Good afternoon. Welcome to Duos Technologies Third Quarter 2023 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry; and CFO, Andrew Murphy. Following their remarks, we will open 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' CEO, Chuck Ferry. Sir, please proceed.
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 well 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 we'll be discussing during our call.
Today, I'm going to discuss my assessment that the company has in the best position it has ever been to achieve our strategy and long-term value despite some short-term financial headwinds, which Andrew will walk us through in a moment. I want to remind everyone that we believe Duos is currently the North American rail industry leader in machine vision and artificial intelligence wayside detection technology. Three of the six Class 1 railroads, plus Fair Max and Amtrak use our railcar inspection solution with strong results. During the third quarter we scan 2.3 million rail cars. And subsequent to the end of the quarter, I'm happy to report our detections are now deployed with all of our railroad customers. While full adoption of machine vision wayside technology paired with AI is going more slowly than we would like. There is strong consensus among industry leaders that this technology will be fully adopted in the coming years as the rail industry makes continued safety improvements.
We believe that Duos is in a strong position, with the support of our current rail customers to be in the leading edge of this adoption. What is critical for us in the next 12 to, coming 12 to 18 months is the transition from a volatile CapEx only business to a machine vision artificial intelligence subscription business with steady recurring revenue. We'll discuss our plan and the critical milestones to lead this after we review the financial results. Andrew?