Home / Business and Economy / Serve Robotics Shares Plummet Amidst Q3 Earnings Miss
Serve Robotics Shares Plummet Amidst Q3 Earnings Miss
5 Dec
Summary
- Serve Robotics' stock declined 22% last month following Q3 earnings.
- Delivery volume surged, but quarterly revenue fell slightly short of estimates.
- The company projects revenue to 10x next year, reaching approximately $30 million.
Serve Robotics saw its stock price fall by 22% last month, influenced by a disappointing third-quarter earnings report and broader market concerns about an AI bubble. The company reported a substantial 66% increase in delivery volume quarter-over-quarter, yet its revenue of $687,000 narrowly missed analyst expectations of $691,000.
Despite these short-term financial results, Serve Robotics is making strategic moves for long-term growth. Key developments include expansion into the Midwest with a launch in Chicago and a significant multi-year partnership with DoorDash for nationwide deliveries. Preliminary projections suggest a tenfold increase in revenue for the upcoming year, potentially reaching $30 million.
While the company is rapidly scaling its operations and extending its delivery coverage to 1 million households from over 3,600 restaurants, it continues to post considerable financial losses. Serve Robotics reported a GAAP net loss of $33 million and an adjusted EBITDA loss of $25 million in its latest quarter. The company maintains substantial liquidity with $310 million, positioning it to navigate its high-risk, high-reward trajectory.
