Duos Technologies Group Inc (NASDAQ:DUOT) on Monday reported a triple-digit increase in revenue for the fourth quarter.
The company said total revenue rose 125% to $5.75 million, compared to $2.56 million in the year-ago period, partially the result of timing shifts from previous quarters and its IT asset management (ITAM) division.
For full-year 2019, Duos said total revenue increased 13% to $13.64 million, compared to $12 million in 2018.
The Jacksonville-based company also highlighted its financial performance for the 4Q, which ended December 31, and full-year 2019:
- For 4Q, gross profit increased 176% year-over-year to $3.15 million (55% of total revenue). For 2019, gross profit increased 25% to $6.48 million year-over-year.
- For the quarter, net income totaled $592,000, an increase from a net loss of $836,000 from the year-ago quarter. However, for 2019, the company clocked a net loss of $2.47 million, an increase from a net loss of $1.58 million in the same period a year ago.
Looking ahead to the rest of 2020, Duos said it will stick to it previously provided revenue guidance of $20 million for the year, which would represent a nearly 47% increase over the $13.6 million recorded in 2019 -- based on contracts in backlog and near-term pending orders that are already performing or scheduled to be executed throughout the course of 2020.
But the company noted that coronavirus (COVID-19) pandemic could upend its guidance.
"We ended the year on a high note, with a record performance in the fourth quarter driven by strong performances in each of our operating divisions," said CEO Gianni Arcaini.
"Most notably, we closed agreements and completed a series of major project implementations toward the end of 2019, supporting our decision to allocate greater resources earlier in the year to meet this expected increase in demand. In Q4 we also achieved profitability thanks to the substantial gross margin increases we generated in the period. We expect to incrementally improve our fundamentals on an annual go-forward basis as we benefit from economies of scale through larger contracts as well as steady increases in recurring revenues from our maintenance and technical support division and the anticipated growth from our truevue360 AI subsidiary.”
He continued: "We began the new year with significant operating and sales momentum as well as an elevated company profile. In February we successfully raised over $9 million to support our future growth needs for the foreseeable future and also uplisted onto the Nasdaq Capital Market. With our new listing on a national exchange, we are eager to capitalize on the opportunity to more widely spread the Duos story to a new, broader audience.”
As for the current global economic crisis related to COVID-19, Arcaini said the company anticipates “an intra-year impact, which would result in possible shifting of revenues from the first half into the latter quarters of 2020. Fortunately, our supply chain was not affected, and our high-value IP revenue drivers are all controlled by the company. We have also maintained consistent communications with our clients and put a plan in place to ensure ongoing business continuity."
He added: “While we still expect to generate robust double-digit growth in 2020, we are refraining from providing updated annual revenue expectations until more reliable information becomes available."
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