Serve Robotics Reports Significant Financial Growth, Revenue Increase, and Strategic Financing Activities in Latest 10-Q Filing

Serve Robotics Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which specializes in developing autonomous robots for last-mile delivery services, experienced a dramatic increase in total assets, rising to $61.47 million from $2.80 million at the end of 2023. Cash holdings surged to $50.91 million, a substantial increase from just $6,756 at the end of the previous year.

For the third quarter of 2024, Serve Robotics generated revenues of $221,555, a 254% increase compared to $62,565 in Q3 2023. Over the nine months ending September 30, 2024, total revenues reached $1.64 million, up from $164,826 in the same period last year, marking an 893% increase. Despite this revenue growth, the company reported a net loss of $7.99 million for Q3 2024, slightly higher than the $7.65 million loss in Q3 2023. For the nine-month period, the net loss was $26.07 million, compared to $17.75 million in the prior year, reflecting a 47% increase in losses.

The company's gross profit improved significantly, with a gross profit of $580,886 for the nine months ended September 30, 2024, compared to a gross loss of $1.17 million in the same period of 2023. However, total operating expenses rose sharply to $25.29 million for the nine months, up from $12.74 million in the previous year, driven primarily by increased research and development costs, which surged to $17.43 million from $7.17 million.

Serve Robotics also undertook strategic financing activities, raising approximately $71.58 million from financing activities in the nine months ended September 30, 2024, compared to $13.08 million in the same period in 2023. This included net proceeds of $35.85 million from a public offering of 10 million shares at $4.00 per share in April 2024.

The company’s stockholder equity improved significantly, reaching $56.18 million as of September 30, 2024, compared to a deficit of $(4.03 million) at the end of 2023. This positive shift was attributed to the successful capital raises and the conversion of convertible notes into equity.

In terms of operational developments, Serve Robotics is focused on scaling its robotic fleet and expanding its market presence beyond Los Angeles. The company faces challenges, including supply chain constraints and regulatory hurdles, which could impact future growth and operational capabilities.