Thu, Mar 6, 9:16 PM (52 days ago)
Serve Robotics Inc. (SERV) reported significant growth in revenue for the fiscal year ended December 31, 2024, generating $1.81 million compared to $0.21 million in 2023, largely due to software services. However, the company incurred a net loss of $39.19 million, widening from a loss of $24.81 million the previous year. Operating expenses surged to $38.21 million, driven by increased research and development costs, which rose by $14.31 million to $24.26 million, reflecting heavy investments in technology and personnel. The company’s financial condition remains robust with $123.27 million in cash as of year-end, bolstered by capital raised through public and private offerings totaling $155.12 million. Despite the positive cash position, Serve faces risks including customer concentration—91% of revenue came from Magna and Uber—and potential market fluctuations affecting demand for its robotic delivery services. Looking ahead, the company aims to deploy 2,000 robots by 2025, leveraging partnerships and technological advancements to enhance operational efficiency and reduce delivery costs. However, the reliance on a limited customer base and ongoing operational losses present challenges to achieving profitability.