Serve Robotics stock tumbles as revenue misses expectations

SAN FRANCISCO - Serve Robotics Inc. (NASDAQ:SERV) reported fourth quarter revenue that fell short of analyst expectations, sending shares down 10.9% in after-hours trading. The autonomous sidewalk delivery company posted revenue of $170,000 for the quarter, below the $176,000 reported in its press release.

For the full year 2024, Serve Robotics generated revenue of $1.8 million, representing 773% growth YoY as the company expanded its operational footprint. However, investors appeared focused on the quarterly revenue miss and widening losses.

The company reported a fourth quarter adjusted loss of -$0.23 per share. Serve did not provide specific forward guidance figures to compare against analyst estimates.

"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.

Serve Robotics highlighted its geographic expansion efforts, including launching service in Downtown LA, Sawtelle and Westwood areas of Los Angeles. The company also announced plans to enter the Dallas-Fort Worth and Atlanta markets by the end of Q2 2025.

The robotics firm ended 2024 with $123 million in cash and no debt. Serve raised an additional $91 million in January 2025, bringing its total financing to $259 million since January 2024.

Despite the revenue miss, Serve Robotics emphasized operational improvements, noting daily supply hours grew to 455 in Q4, up 94% YoY. The company also achieved an 81% increase in daily active robots compared to the prior year.

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