Duos Technologies Reports 112% Revenue Growth, Improved Profitability in Q3 2024

Duos Technologies Group, Inc. reported its financial results for the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic initiatives compared to the previous fiscal period.

For the three months ended September 30, 2024, Duos Technologies achieved total revenues of $3.24 million, a substantial increase of 112% from $1.53 million in the same period of 2023. This growth was primarily driven by a 139% rise in technology systems revenue, which reached $1.69 million, and an 88% increase in services and consulting revenue, totaling $1.55 million. The latter included $505,982 from new power consulting work. However, for the nine months ended September 30, 2024, total revenues slightly decreased by 2% to $5.82 million from $5.95 million in 2023, attributed to deployment delays of high-speed Railcar Inspection Portals.

The company's cost of revenues for the three months ended September 30, 2024, rose to $2.32 million, up 78% from $1.30 million in 2023, largely due to increased procurement and production costs. Despite this, gross margin improved significantly, reaching $919,099 compared to $226,588 in the prior year, reflecting a 306% increase. Operating expenses for the same quarter decreased by 11% to $2.84 million, contributing to a reduced loss from operations of $(1.92 million), an improvement from $(2.97 million) in 2023. The net loss for Q3 2024 was $(1.40 million), down from $(2.95 million) in the previous year.

For the nine-month period, the net loss was $(7.36 million), a 9% decrease from $(8.08 million) in 2023. The company reported a working capital deficit of $1.60 million as of September 30, 2024, and an accumulated deficit of $70.96 million. Cash used in operating activities increased to $(6.20 million) from $(5.64 million) in the prior year.

Strategically, Duos Technologies has initiated several new initiatives, including the formation of Duos Energy Corporation to address energy solutions for data centers. The company is also expanding its focus beyond rail markets into non-rail sectors, leveraging its technology for Edge Data Centers. Additionally, Duos has secured promissory notes totaling $2.2 million and entered into an ATM Sales Agreement for common stock with an aggregate offering price of up to $7.5 million.

As of September 30, 2024, total assets increased to $22.02 million from $12.84 million at the end of 2023, while total liabilities rose to $19.51 million from $7.48 million. The company’s management remains optimistic about future revenue opportunities, citing a steady contracted backlog and positive signs from new commercial engagements.