Duos Technologies Group (DUOT) 2024 Annual Gateway Conference summary

Strategic transformation and business evolution

• Transitioned from a railroad technology focus to a broader intelligent technology solutions provider, with 90% of staff new in recent years and a redefined business model.

• Introduced two new divisions: Duos Edge AI (edge data centers) and Duos Energy (power consulting), expanding beyond rail applications.

• Management team strengthened with experienced leaders for each division, aiming for significant growth potential.

Technology and product innovation

• Railcar Inspection Portal (RIP) uses AI and machine vision to inspect railcars at speeds up to 125 mph, providing 360-degree imaging and defect detection within 60 seconds.

• Over 50 AI models focus on safety-critical inspection points, with 95% accuracy, and support regulatory compliance.

• Subscription service launched to provide safety data as SaaS, enabling access without hardware investment and supporting industry standardization.

• Scanned over 8 million railcars last year, expected to reach 11 million this year, leading the industry in data volume and comprehensiveness.

Edge data centers and market expansion

• Edge data centers process high-resolution image data locally, reducing latency and costs, and are managed via a 24/7 network operations center.

• Key drivers include proliferation of IoT and AI, with edge centers supporting broadband delivery to underserved communities.

• Recent deal to deliver edge data centers to a Texas school district, with plans to deploy about 150 units in tier three and four markets such as schools and hospitals.

• Each edge data center costs about $1 million to deploy, generates ~$400,000 annual revenue, with 71% margins and long-term contracts (5–10 years).