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Serve Robotics Announces Fourth Quarter and Full Year 2024 Results
Source: Nasdaq GlobeNewswire / 06 Mar 2025 15:05:01 America/Chicago
- Full year revenue of $1.8 million, an increase of 773% year-over-year
- Continued geographic expansion in Los Angeles, successful launch in Miami, and planning entry into Dallas and Atlanta metros
- Reach increased to over 1,000 restaurants, a 3x increase year-over-year, and to over 300,000 households, a 2x increase year-over-year
- Ending 2024 cash of $123 million, no debt; an additional $91m raised in January 2025, bringing the total financing to $259 million since January 2024
SAN FRANCISCO, March 06, 2025 (GLOBE NEWSWIRE) -- Serve Robotics Inc. (the “Company” or “Serve”) (Nasdaq: SERV), a leading autonomous sidewalk delivery company, today announced financial results for the fourth quarter and full year 2024 ended December 31, 2024.
"2024 was a transformational year for Serve. We doubled the delivery capacity of our existing fleet, completed the design of a new generation of more capable and cost-efficient robots, began scale manufacturing in partnership with Magna, expanded our delivery partnerships, and made significant strides in executing our expansion plans," said Dr. Ali Kashani, Serve's Co-founder and CEO. "We entered the year with an ambitious plan, and made significant progress in realizing it. We believe we are well-positioned for continued growth and on track to deploy 2,000 robots across the U.S. by year-end."
Business Highlights
- Delivery Volume: Doubled delivery capacity and volume of existing robot fleet through improved geographic reach and operational efficiencies.
- Geographic Expansion: Significantly expanded operational footprint in 2024, with Los Angeles service launched in Downtown LA, Sawtelle and Westwood areas, and Dallas Fort Worth market entry announced. Post year-end, delivery service launched in first expansion market, Miami; Los Angeles operations expanded into Glendale and Long Beach; and on track for entry into the Dallas Fort-Worth and Atlanta markets by the end of Q2 2025.
- Hardware Development: Completed design of third-generation robot with significantly enhanced capabilities—including ability to move roughly twice as fast, travel twice as far, and deploy 5x more AI computing power—at approximately 50% of prior manufacturing cost. Post year-end, a further 30% reduction in manufacturing costs achieved, making future third generation robots cost 65% less compared to previous generation.
- Scale Manufacturing: Entered into production with Magna International Inc., one of the world's largest automotive suppliers. First 75 new third-generation robots successfully delivered in December 2024, ahead of schedule.
- Partnership Additions: Reach expanded to more than 1,000 restaurants and 300,000 households. Began offering robotic delivery for national restaurant chain Shake Shack Inc. and entered partnership with on-demand drone delivery provider, Wing Aviation, to offer multi-modal delivery to customers up to 6 miles away.
- Operational Performance: Daily supply hours grew to 455 in the fourth quarter of 2024 with a 94% annual increase year-over-year. The Company also achieved a 81% increase in daily active robots year-over-year.
Fourth Quarter and Full Year Financial Highlights
- Revenue: Reached $1.8 million in 2024, with Q4 contributing $176,000. This represents 773% growth year-over-year, demonstrating the increasing adoption of our technology and services.
- Balance Sheet: Strong liquidity position achieved following $167 million of financing completed in 2024. Year ended with a robust cash position of $123 million and no outstanding debt obligations. Post year-end, a further $80 million raised via a registered direct offering.
- Outstanding Shares: 51.3 million shares of common stock outstanding as of December 31, 2024. Approximately 57 million shares outstanding as of March 6, 2025.
Quarterly Conference Call
Company management will host a conference call and webcast today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial results and provide a corporate update. A live webcast and replay can be accessed from the investor relations page of Serve Robotics’ website at investors.serverobotics.com.
Individuals interested in listening to the conference call may do so by dialing 646-307-1963 and referencing conference ID 4699268.
About Serve
Serve develops advanced, AI-powered, low-emissions sidewalk delivery robots that endeavor to make delivery sustainable and economical. Spun off from Uber in 2021 as an independent company, Serve has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven. Serve has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets.
For further information about Serve (Nasdaq: SERV), please visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics.
Supplemental Financial InformationThe key metrics and financial tables outlined below are metrics that provide management with additional understanding of the drivers of business performance and the Company’s ability to deliver stockholder return. Investors should not place undue reliance on these metrics as indicators of future or expected results. The Company’s presentation of these metrics may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.
Table 1
Key Metrics
(unaudited)Three Months Ended Twelve Months Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Daily Active Robots (1) 57 59 34 52 29 Daily Supply Hours (2) 455 465 260 399 206 (1) Daily Active Robots: The Company defines daily active robots as the average number of robots performing daily deliveries during the period.
(2) Daily Supply Hours: The Company defines daily supply hours as the average number of hours the Company’s robots are ready to accept offers and perform daily deliveries during the period.Table 2
Disaggregation of Revenue
(unaudited)Three Months Ended Year Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Software services $ — $ 38,767 $ — $ 1,185,903 $ — Delivery services 92,592 112,288 34,678 332,180 146,462 Branding fees 83,250 70,500 — 294,400 45,250 Other revenue — — 8,041 — 15,833 $ 175,842 $ 221,555 $ 42,719 $ 1,812,483 $ 207,545
Forward Looking StatementsThis Serve Robotics Inc. (the “Company”) investor presentation contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when we or our management are discussing our beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent management’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside of our control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company’s partnership with Magna, timing of the Company’s robot deployment, the Company’s ability to expand to additional markets, capabilities of the Company’s robots, outcomes of planned acquisitions, and the Company’s timing and ability to scale to commercial production.
The forward-looking statements contained in this investor presentation are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations'' in our Annual Report on Form 10-K for the year ended December 31, 2024, and in the Company’s subsequent SEC filings. The Company can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this presentation are based on information available to the Company as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this presentation.
Non-GAAP Measures of Financial Performance
To supplement the company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP cost of sales, non-GAAP general and administrative expense, non-GAAP research and development expense, non-GAAP operations expense, non-GAAP sales and marketing expense, non-GAAP operating expense, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share.
The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance.
As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company’s financial and operational performance. The company defines its non-GAAP measures by excluding stock-based compensation.
Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables presented. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.
To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so.
Contacts
Media
Aduke Thelwell
Head of Communications & Investor Relations
Serve Robotics
aduke.thelwell@serverobotics.com
347-464-8510Investor Relations
investor.relations@serverobotics.comTable 3
Serve Robotics Inc.
Condensed Consolidated Balance Sheets
(unaudited)December 31,
2024December 31,
2023ASSETS Current assets: Cash and cash equivalents $ 123,266,437 $ 6,756 Accounts receivable 86,805 2,955 Inventory 309,711 774,349 Prepaid expenses 1,396,874 676,969 Other Receivables 191,643 — Total current assets 125,251,470 1,461,029 Property and equipment, net 11,963,461 48,422 Operating lease right-of-use assets 1,807,705 782,439 Security Deposits 578,237 512,659 Total assets $ 139,600,873 $ 2,804,549 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 4,901,665 $ 2,050,605 Accrued liabilities 654,466 255,849 Deferred revenue 20,097 — Note payable, current — 1,000,000 Note payable - related party — 70,000 Operating lease liabilities, current 666,136 496,963 Financing lease liabilities, current 564,383 2,363,807 Total current liabilities 6,806,747 6,237,224 Note payable, net of current portion — 230,933 Restricted stock award liability — 158,617 Operating lease liabilities, non-current 1,113,212 211,181 Total liabilities 7,919,959 6,837,955 Stockholders’ equity (deficit): Common stock, 0.0001 par value; 300,000,000 shares authorized, 51,396,574 and 24,832,814 shares issued and 51,288,566 and 24,508,795 shares outstanding as of December 31, 2024 and 2023, respectively 5,127 2,450 Additional paid-in capital 239,201,220 64,468,141 Subscription receivable — (169,616 ) Accumulated deficit (107,525,433 ) (68,334,381 ) Total stockholders’ equity (deficit) 131,680,914 (4,033,406 ) Total liabilities and stockholders’ equity (deficit) $ 139,600,873 $ 2,804,549 Table 4
Serve Robotics Inc.
Condensed Consolidated Statement of Operations
(unaudited)Three Months Ended Year Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Revenues $ 175,842 $ 221,555 $ 42,719 $ 1,812,483 $ 207,545 Cost of revenues 831,884 377,304 399,097 1,887,639 1,730,262 Gross loss (656,042 ) (155,749 ) (356,378 ) (75,156 ) (1,522,717 ) General and administrative 5,231,433 1,980,087 1,203,550 10,092,911 4,618,499 Operations 959,244 917,350 892,527 3,288,779 2,564,930 Research and development 6,820,691 5,007,985 2,775,812 24,255,023 9,947,258 Sales and marketing (90,675 ) 383,902 123,694 577,075 605,205 Impairment of long-lived assets — — 1,468,995 — 1,468,995 Total operating expenses 12,920,693 8,289,324 6,464,578 38,213,788 19,204,887 Loss from operations (13,576,735 ) (8,445,073 ) (6,820,956 ) (38,288,944 ) (20,727,604 ) Other income (expense), net: Interest income (expense), net 457,240 448,854 (242,430 ) (680,548 ) (2,264,426 ) Change in fair value of derivative liability — — — (221,560 ) (149,000 ) Change in fair value of simple agreements for future equity — — — — (1,672,706 ) Total other income (expense), net 457,240 448,854 (242,430 ) (902,108 ) (4,086,132 ) Provision for income taxes — — — — — Net loss $ (13,119,495 ) $ (7,996,219 ) $ (7,063,386 ) $ (39,191,052 ) $ (24,813,736 ) Weighted average common shares outstanding - basic and diluted 36,658,834 40,586,781 14,204,078 36,658,834 14,204,078 Net loss per common share - basic and diluted $ (0.36 ) $ (0.20 ) $ (0.50 ) $ (1.07 ) $ (1.75 ) Table 5
Serve Robotics Inc.
Condensed Consolidated Statement of Cash Flows
(unaudited)Twelve Months Ended
December 31,2024 2023 Cash flows from operating activities: Net loss $ (39,191,052 ) $ (24,813,736 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 309,712 1,863,924 Stock-based compensation 14,554,926 544,375 Amortization of debt discount 1,677,942 1,811,798 Change in fair value of derivative liability 221,560 149,000 Change in fair value of simple agreements for future equity - 1,672,706 Impairment of long-lived assets - 1,468,995 Interest on recourse loan - (3,897 ) Changes in operating assets and liabilities: - - Accounts receivable (83,850 ) 20,742 Inventory 464,638 (156,087 ) Prepaid expenses (719,905 ) (595,630 ) Other receivables (191,643 ) - Accounts payable 872,251 1,888,568 Accrued liabilities 477,157 228,020 Deferred revenue 20,097 - Operating lease liabilities, net 45,938 (49,656 ) Net cash used in operating activities (21,542,229 ) (15,970,878 ) Cash flows from investing activities: Purchase of property and equipment (10,252,409 ) (4,914 ) Security deposits (65,578 ) - Net cash used in investing activities (10,317,987 ) (4,914 ) Cash flows from financing activities: Proceeds from issuance of common stock pursuant to public offering, net of offering costs 35,849,136 - Proceeds from issuance of prefunded warrants to purchase common stock in connection with private placement, net of issuance costs 17,115,963 - Proceeds from issuance of common stock under the Sales Agreement and Equity Distribution Agreement, net of offering costs 77,595,993 - Proceeds from exercise of warrants 22,448,841 - Proceeds from convertible notes payable, net of offering costs 4,844,625 2,798,410 Proceeds from exercise of options 367,297 - Proceeds from note payable - 750,000 Repayments of note payable (1,250,000 ) (1,750,000 ) Proceeds from note payable, related party - 519,000 Repayments of notes payable, related party (70,000 ) (449,000 ) Issuance of restricted common stock, net of repurchases - (3 ) Issuance of common stock pursuant to Merger and private placement, net of offering cost - 10,444,987 Proceeds from simple agreement for future equity - 2,666,953 Repayment of financing lease liability (1,781,958 ) (1,713,518 ) Net cash provided by financing activities 155,119,897 13,266,829 Net change in cash and cash equivalents 123,259,681 (2,708,963 ) Cash and cash equivalents at beginning of year 6,756 2,715,719 Cash and cash equivalents at end of year 123,266,437 6,756 Table 6
Reconciliation of GAAP Net Losses to Adjusted EBITDA
(unaudited)Three Months Ended Year Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023Net loss on GAAP basis (13,119,495 ) (7,996,219 ) (7,063,386 ) (39,191,052 ) (24,813,736 ) Interest (income) expense, net (457,240 ) (448,854 ) 242,430 680,548 2,264,426 Depreciation 273,152 9,060 467,005 309,712 1,863,924 Stock-based compensation 4,624,446 2,195,011 240,118 14,554,926 544,375 Adjusted EBITDA (8,679,137 ) (6,241,002 ) (6,113,833 ) (23,645,866 ) (20,141,011 ) Table 7
Reconciliation of GAAP Measures to Non-GAAP Measures
(unaudited)Three Months Ended Year Ended December 31,
2024September 30,
2024December 31,
2023December 31,
2024December 31,
2023GAAP cost of sales $ 831,884 $ 377,304 $ 399,097 $ 1,887,639 $ 1,730,262 Stock-based compensation — — — — — Non-GAAP cost of sales 831,884 377,304 399,097 1,887,639 1,730,262 GAAP general & administrative expense $ 5,231,433 $ 1,980,087 $ 1,203,550 $ 10,092,911 $ 4,618,499 Stock-based compensation 2,217,477 386,280 25,763 2,833,862 59,002 Non-GAAP general and administrative expense 3,013,956 1,593,807 1,177,787 7,259,049 4,559,497 GAAP operations expense $ 959,244 $ 917,350 $ 892,527 $ 3,288,779 $ 2,564,930 Stock-based compensation (45,153 ) 47,066 21,237 146,152 49,139 Non-GAAP operations expense 1,004,397 870,284 871,290 3,142,627 2,515,791 GAAP research and development expense $ 6,820,691 $ 5,007,985 $ 2,775,812 $ 24,255,023 $ 9,947,258 Stock-based compensation 2,445,589 1,740,948 184,656 11,491,617 416,838 Non-GAAP research and development expense 4,375,102 3,267,037 2,591,156 12,763,406 9,530,420 GAAP sales and marketing expense $ (90,675 ) $ 383,902 $ 123,694 $ 577,075 $ 605,205 Stock-based compensation 6,533 20,718 8,463 83,296 19,396 Non-GAAP sales and marketing expense (97,208 ) 363,184 115,231 493,779 585,809 GAAP operating expense $ 12,920,693 $ 8,289,324 $ 6,464,578 $ 38,213,788 $ 19,204,887 Stock-based compensation 4,624,446 2,195,011 240,119 14,554,926 544,375 Non-GAAP operating expenses 8,296,247 6,094,313 6,224,459 23,658,862 18,660,512 GAAP net loss $ (13,119,495 ) $ (7,996,219 ) $ (7,063,386 ) $ (39,191,052 ) $ (24,813,736 ) Stock-based compensation 4,624,446 2,195,011 240,119 14,554,926 544,375 Non-GAAP net loss (8,495,049 ) (5,801,208 ) (6,823,267 ) (24,636,126 ) (24,269,361 ) Weighted average common shares outstanding - basic and diluted 36,658,834 33,267,589 14,204,078 36,658,834 14,204,078 GAAP basic and diluted net loss per
Common share$ (0.36 ) $ (0.20 ) $ (0.50 ) $ (1.07 ) $ (1.75 ) Non-GAAP basic and diluted net loss per
Common share$ (0.23 ) $ (0.17 ) $ (0.48 ) $ (0.67 ) $ (1.71 ) 
