Working for customers it could not have served a year ago

Duos Technologies Group, Inc. (DUOT) — this company's answers

The model's full reasoning — Q4 2023 call → NOWe need to determine if management conveys a capability step-change with all three elements: before/after, paying proof, and early stage. The transcript discusses transition to subscription model, AI services, edge computing, partnerships with Dell/NVIDIA, new patent, etc. But does it explicitly state a before/after capability that is now being paid for and is early? Key points: They mention "recurring revenues climbed by approximately 23% on a year-over-year basis" and "deployment of AI services deployed with several customers, and the onset of a data subscription services contract with a transit customer." That suggests paying work for AI services and subscriptions. But is this a step-change in capability? They talk about "AI at the Edge" and winning a competition, but that's not necessarily a new capability they couldn't do before. They also mention "new version of our world-class Centraco platform" but that's future. They say "we are in discussions with several companies outside the rail industry to use our knowledge and expertise to support their edge computing requirements" - that's still discussions, not paying. They mention "we have also identified or are in discussions with several large telecommunications companies to deploy its data centers" - again discussions. The question asks: does management convey that the company CAN NOW ACTUALLY DO SOMETHING that it COULD NOT DO ROUGHLY A YEAR AGO, and that REAL CUSTOMERS ARE ALREADY PAYING FOR THAT NEW CAPABILITY NOW, with the business it enables still early? Look for explicit before/after. They talk about transition from CapEx to subscription, but that's a business model change, not necessarily a capability step-change. They mention "we currently operate 13 edge data centers" - that's a number, but was that a year ago? Not clear. They mention "we have also dramatically increased the computing speed at the edge for our artificial intelligence detections and making the results available in 60 seconds or less, which is much faster than our competitors" - that's a performance improvement, but is it a step-change? Possibly, but is there paying proof? They say "which has now been adopted by all of our current customers" - that suggests customers are using it. But is that new? They say "we have also dramatically increased" - implies improvement, but not necessarily a before/after that couldn't do before.

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