Cantor Fitzgerald has begun coverage of Serve Robotics (SERV, Financial) with an Overweight rating, setting a price target of $17. The firm expresses optimism regarding Serve Robotics' potential, suggesting a positive outlook for the company. This new assessment from Cantor Fitzgerald highlights the firm's confidence in SERV's market capabilities and future growth prospects.
SERV Key Business Developments
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.
