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Serve Robotics (SERV) Q2 Earnings & Revenues Increase Y/Y

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Serve Robotics Inc. (SERV - Free Report) reported an adjusted net loss of 27 cents per share in the second quarter of 2024, narrower than a loss of 37 cents reported in the year-ago quarter.

The company reported revenues of $468,375, which increased from $62,009 recorded in the year-ago quarter.

Serve Robotics Inc. Price, Consensus and EPS Surprise

Serve Robotics Inc. Price, Consensus and EPS Surprise

Serve Robotics Inc. price-consensus-eps-surprise-chart | Serve Robotics Inc. Quote

Quarter Details

Revenues increased $0.41 million to $0.47 million for the three months ended Jun 30, 2024, compared with $0.06 million reported in the year-ago quarter. The increase is primarily due to $0.30 million in revenues generated from the company’s software services contract with Magna. 

The company also recognized increases in delivery and branding revenues of $0.11 million to $0.17 million for the three months ended Jun 30, 2024, compared with $0.06 million reported in the same period in 2023. Software service revenues are expected to be inconsistent in the future.

One customer accounted for 63% of the company's revenues during the three months ended Jun 30, 2024. One customer accounted for 59% of the company's revenues in 2023. 

As of Jun 30, 2024, one customer accounted for 74% of the accounts receivable. SERV currently has a limited number of customers. If either of the company’s significant customers were to breach, cancel or amend agreements with SERV, it may have an outsized effect on its revenues, cash on hand and profitability.

Operating Details

SERV reported a gross profit of $142,362 in the quarter against a loss of $329,358 incurred in the year-ago quarter.

General & administrative expenses increased 93% year over year, reaching $1.87 million in the reported quarter. 

Operations expenses rose 47% year over year to $871,211. 

Research & development expenses rose 172.3% on a year-over-year basis to $5.8 million. 

Sales and marketing expenses surged 99.2% year over year to $165,612. 

SERV reported loss from operations of $9.05 million compared with a loss of $4.1 million in the year-ago quarter.

Balance Sheet & Cash Flow

The company exited the quarter with cash and cash equivalent balance of $28.8 million compared with $0.43 million at the end of the prior quarter.

The company used $9.82 million of net cash from operating activities compared with a loss of $7.7 million at the end of the prior quarter.

Zacks Rank & Stocks to Consider

Currently, Serve Robotics carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Computer and Technology sector are Bilibili (BILI - Free Report) , Cisco Systems (CSCO - Free Report) and Applied Materials (AMAT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bilibili’s shares have gained 15% year to date. BILI is set to report second-quarter 2024 results on Aug 22.

Shares of Cisco Systems have plunged 10.2% year to date. CSCO is slated to post fourth-quarter fiscal 2024 results on Aug 15.

Shares of Applied Materials have gained 23.9% year to date. AMAT is set to release third-quarter fiscal 2024 results on Aug 15.

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