Duos Technologies Group (NasdaqCM:DUOT) Conference Transcript

Summary of Duos Technologies Group Conference Call (October 21, 2025) Company Overview - Company Name: Duos Technologies Group (NasdaqCM: DUOT) - Business Focus: Transitioning from rail inspection to data center infrastructure, with a focus on modular data centers in tier three and tier four markets [2][3][22] Key Points and Arguments Business Strategy - Expansion into Data Centers: The company is expanding its operations into the data center infrastructure space, leveraging its existing technology and infrastructure [2][3] - Modular Data Centers: Introduction of micro data centers aimed at improving connectivity in underserved markets, particularly in education and healthcare sectors [8][9][12] - Cost Model Shift: Transitioning clients from a capital expenditure (CapEx) model to an operational expenditure (OpEx) model by providing modular data centers that reduce their upfront costs [11][12] Market Opportunities - Target Markets: Focus on tier three and tier four markets, starting with Amarillo, Texas, and expanding to Corpus Christi and Illinois [9][23] - Partnerships: Collaborating with local education sectors and healthcare providers to establish anchor tenants for the data centers [18][24] - Carrier Collaboration: Bringing in multiple carriers to enhance connectivity and create a "carrier hotel" effect, which locks in market share [13][22] Financial Performance - Historical Financials: Previous revenues fluctuated between $7 million to $15 million, largely due to the lumpy nature of the rail business [28] - Recent Capital Raise: Successfully raised $45 million, the largest in the company's history, to fund expansion into edge data centers [30] - Debt-Free Status: Currently has no debt and approximately $35 million in cash on the balance sheet [30] Future Growth Plans - Projected Growth: Plans to deploy 15 additional data centers by the end of the year and 45 more in the following year [22][31] - Recurring Revenue Model: All revenue from the Duos Edge AI subsidiary is expected to be annual recurring revenue, enhancing financial stability [42] Competitive Advantage - Unique Technology: Recently awarded a patent for a clean room design in modular data centers, which helps maintain equipment warranties and improves operational efficiency [20][21] - No Direct Competition: Currently, the company does not face direct competition in its specific modular data center model [21] Additional Important Information - Management Team: The management team includes experienced professionals with backgrounds in data centers and technology [27][25] - Focus on Telecom Sector: The company aims to build a robust network in the telecom sector, which is critical for its growth strategy [22] - Long-Term Contracts: Contracts are typically long-term (five years plus five-year renewals), providing a stable revenue stream [44] This summary encapsulates the key insights from the conference call, highlighting the strategic direction, market opportunities, financial outlook, and competitive advantages of Duos Technologies Group.