Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Serve Robotics Inc (SERV, Financial) successfully built 250 new 3rd generation robots in Q1, keeping them on track to deploy 2000 robots by the end of the year.
- The company expanded its delivery capacity by over 40% and increased delivery volume by 75% during Q1.
- Serve Robotics Inc (SERV) launched in two new markets, Miami and Dallas, and plans to launch in Atlanta by the end of Q2.
- The company raised an additional $91 million in Q1, ending the quarter with $198 million in cash, providing financial flexibility.
- Serve Robotics Inc (SERV) maintained high delivery quality, reducing delivery failures by 65% compared to the previous year.
Negative Points
- Total cost of revenues increased by approximately $1 million due to start-up costs related to fleet scaling and new market launches.
- GAAP operating expenses rose to $13.5 million in Q1, up from $12.9 million in Q4 and $8.3 million in Q1 of the previous year.
- The increased share of early-stage operations and fleet revenues negatively impacted the overall revenue mix.
- Despite revenue growth, the company reported a GAAP net loss per share of $0.23 and a non-GAAP net loss per share of $0.16.
- The company faces ongoing challenges with supply chain management and tariff impacts, although they have managed to offset these costs so far.
Q & A Highlights
Q: Can you tell us what you've learned from the new launches in Miami, Dallas, and soon Atlanta? Is there anything you can share about operations and initial progress?
A: Ali Kashani, CEO, explained that each city presents unique operational challenges, but they follow a high-level playbook adaptable to local conditions. For instance, Miami was launched ahead of schedule, and within a few weeks, delivery volume increased 2.5 times. They focus on public engagement to ensure community acceptance of the robots.
Q: Can you provide more detail on the performance of the Gen 3 robots in terms of daily deliveries or range compared to Gen 2?
A: Ali Kashani, CEO, stated that Gen 3 robots are performing better than Gen 2, with improvements in cargo capacity and operational hours due to better battery capacity. They are working to resolve any issues early to ensure smooth scaling.
Q: With 250 robots added in Q1, what is the total fleet size? How did you derive the guidance for delivery volume and top-line revenues?
A: Ali Kashani, CEO, mentioned that the fleet size is over 300 robots, including those for R&D and testing. The guidance for Q2 assumes increased daily active robots in existing and new markets, expecting a 60 to 75% increase in delivery volume compared to Q1.
Q: Can you share more about tariff impact? Have tariffs affected the cost of components or the timing on receiving them?
A: Brian Reed, CFO, explained that they have implemented strategies like supplier diversification to mitigate tariff impacts. Their exposure to China remains small, and cost reductions in the supply chain have offset any tariff impacts.
Q: How do you think about the monetization opportunities related to data and software? How should we think about modeling the potential revenue impact?
A: Ali Kashani, CEO, described this as a long-term play. They are building products on their technology stack, and as partners use their technology to build products, Serve Robotics will share in the value created. They have agreements with several customers and expect recurring software platform revenues to grow.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
