Duos Technologies Group, Inc. (NASDAQ:DUOT) Q4 2023 Earnings Conference Call April 1, 2024 4:30 PM ET

Company Participants

Chuck Ferry - Chief Executive Officer
Andrew Murphy - Chief Financial Officer

Conference Call Participants

Edward Woo - Ascending Capital Markets

Operator

Good afternoon. Welcome to Duos Technologies Fourth Quarter and Full Year 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 call 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 would like to turn the call over to Duos’ CEO, Chuck Ferry. Sir, please proceed.

Chuck Ferry

Thank you. Welcome everyone, and thank you for joining us. Earlier today, we issued a press release announcing our financial results for the fourth quarter and full year 2023 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-K filing with the SEC to better understand some of the details we’ll be discussing during our call.

Today, in addition to giving commentary on the recent financials, I’m going to update the assessment I gave during the last earnings call. During that call, I told you that I believe the company was in the best position it had ever been to achieve our strategy and long-term value for shareholders. We anticipated that short-term financial headwinds, as manifested in our results for last year, would provide additional challenges for us in executing our strategy. I am pleased to report that, despite these challenges, our mid- and long-term outlook remains unchanged, and I’m expecting much improved performance for 2024.

Outside of the most recent financial results, the company continues to make significant progress on many different strategic programs, and I’ll be giving you a more comprehensive assessment in my commentary following the financial report from our CFO. What remains critical for us in the coming 12 months is to complete the transition from a volatile CapEx-only business to a technology-focused subscription business with steady recurring revenue. We’ll update you on progress with our plan and the critical milestones to achieve this after we review the financial results.

Over to you, Andrew.

Andrew Murphy

Thank you, Chuck. As we have discussed in previous calls, Duos has historically operated with periods of intermittent growth, interspersed with temporary lulls as large new contracts begin the execution cycle and progress through various stages of development. Our results for Q4 and the full year exemplify this volatility in revenue, underscoring the continued challenges in a purely CapEx model and supporting our ongoing efforts to focus on a primarily subscription-based model in the future.