Serve Robotics Inc. (SERV) saw its shares climb in after-hours trading on Tuesday, following the release of the company’s impressive second-quarter financial results. The company, known for its autonomous sidewalk robots designed for deliveries, reported a revenue of $468,375, exceeding analyst estimates of $400,000. While the company still recorded a loss of 27 cents per share, this was slightly better than the projected loss of 25 cents.
One key highlight of the quarter was the significant increase in Serve’s daily supply hours. The company clocked in an average of 385 daily supply hours, representing a staggering 106% year-over-year growth. This increase was driven by a surge in daily active robots, which saw an 85% year-over-year jump.
Serve Robotics also made substantial progress in its production and partnerships. The company initiated manufacturing activities for its 2,000-robot fleet during the second quarter. It also entered into a strategic agreement with Magna, a leading automotive supplier, for both production and software services. This agreement includes a significant software services contract that contributed $300,000 to Serve’s revenue during the quarter.
Further strengthening its operations, Serve Robotics signed an amendment to its existing supply agreement with Ouster, a provider of lidar sensors. This amendment will equip Serve’s robots with upgraded sensors, enhancing their capabilities and safety.
Looking ahead, Serve Robotics has ambitious plans. The company has completed the design of its third-generation robot and is focused on executing its fleet expansion plan. The goal is to deploy at least 250 additional robots in Los Angeles by the end of Q1 2025. Serve Robotics believes that by the end of 2025, it will be well-positioned to deploy all 2,000 robots under its agreement with Uber Eats. At full utilization, this fleet is projected to generate annual revenue of $60 to $80 million.
Serve Robotics’ journey began as the robotics division of Postmates, a food delivery platform. When Uber acquired Postmates in 2020, the robotics division was spun off as Serve Robotics. The company’s autonomous sidewalk robots began delivering to Postmates customers in 2018, paving the way for its current success.
In mid-July, NVIDIA Corp (NVDA) announced a 10% stake in Serve Robotics, signaling confidence in the company’s potential. This investment has further fueled investor interest in Serve Robotics, driving its stock price up over 330% in the past month.
At the time of publication, Serve Robotics shares were trading at $11.55, representing an 11.38% increase in extended trading. This surge in stock price underscores the market’s optimism surrounding Serve Robotics’ future growth and its role in shaping the future of autonomous delivery.
