Serve Robotics (SERV) Q2 2024 earnings summary

Executive summary

• Completed successful public offering and uplisting to Nasdaq, raising $40 million, and a $15 million private placement, supporting growth and expansion.

• Achieved 30 consecutive months of double-digit month-over-month delivery volume growth, with significant expansion in Los Angeles and new manufacturing agreements for a 2,000-robot fleet.

• Q2 2024 revenue was $468,375, up 655% year-over-year, driven by software services and increased delivery and branding revenues.

• Net loss for Q2 2024 was $9.04 million, primarily due to higher R&D and stock-based compensation expenses.

• Strategic partnerships with Uber Eats, Magna, NVIDIA, and others support expansion and manufacturing scale.

Financial highlights

• Q2 2024 revenue was $468,375, including $296,000 from a non-recurring software contract with Magna.

• Delivery and branding revenues grew 80% quarter-over-quarter and 178% year-over-year to $172,000.

• Operating expenses for Q2 2024 were $8.7 million, including $3.5 million in non-cash stock-based compensation.

• Cash and cash equivalents at June 30, 2024, were $28.8 million.

• Net loss per share for Q2 2024 was $(0.27), compared to $(0.74) in Q2 2023.

Outlook and guidance

• Fleet expansion to 2,000 robots expected by end of 2025, with first units rolling off production in Q4 2024.

• Targeting $60–$80 million annual revenue run rate at full deployment.

• Plans to deploy at least 250 additional robots in Los Angeles by end of Q1 2025 and enter a new major metro by end of Q2 2025.

• Management expects continued operating losses through 2024 and 2025 as investments in scaling and R&D continue.

• Profitability is dependent on revenue growth, economic conditions, and successful execution of the business plan.