Serve Robotics Inc. (SERV) witnessed a significant spike in after-hours trading today, with its stock price rising to $12.10, marking a substantial gain of 16.68%. This surge came amid high trading volume, with 2.71 million shares changing hands, reflecting strong interest from investors.
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Recent Market Movements
Serve Robotics Inc. has been attracting attention lately as it progresses in the robotics and automation sectors. The after-hours rally today underscores growing confidence in the market, likely spurred by the company’s recent achievements, new partnerships, or favorable trends within the automation industry.
Q2 2024 Financials and Key Developments
On August 13, 2024, Serve Robotics Inc. shared its financial outcomes for the second quarter of 2024, which concluded on June 30, 2024. The report highlights the company’s robust operational performance alongside significant corporate milestones.
Public Offering & Additional Funding: On April 18, 2024, Serve completed a public equity offering, raising $40.0 million. This marked a pivotal moment as the company’s stock began trading on The Nasdaq Capital Market under the ticker “SERV”. Moreover, after the quarter ended, Serve finalized a private placement, securing another $15.0 million.
Operational Success: During the second quarter, Serve Robotics averaged 385 daily supply hours, a 106% year-over-year increase and a 28% rise quarter-over-quarter. The company also saw an 85% year-over-year increase in daily active robots and a 23% increase quarter-over-quarter.
Expansion in Los Angeles: In June 2024, Serve expanded its delivery operations to Koreatown, Los Angeles, through a partnership with Uber Eats, onboarding new local merchants. This expansion aligns with Serve’s broader strategy to increase its geographical presence across Los Angeles and nationwide.
Manufacturing Milestones: Serve began manufacturing its fleet of 2,000 robots in the second quarter, under the guidance of Euan Abraham, the newly promoted Chief Hardware & Manufacturing Officer. The company signed a manufacturing agreement with Magna to produce its delivery robots and expanded its supply agreement with Ouster to equip its next-generation robots with advanced sensors.
Second Quarter Financial Summary
Serve Robotics reported $0.47 million in revenue for Q2, with $0.30 million derived from its software services agreement with Magna. As anticipated, the services contract with Magna was largely completed during the quarter, and the company does not expect significant software services revenue in Q3 2024.
As of June 30, 2024, Serve had $28.8 million in cash and cash equivalents. The company reported 36.5 million shares of common stock outstanding, with 42.6 million shares on a fully diluted basis. After the private placement in July 2024, Serve’s outstanding shares on a fully diluted basis increased to approximately 48.2 million.
