Serve Robotics Inc, a company that recently went public via a reverse merger with Patricia Acquisition Corp, experienced a surge in its stock price during after-hours trading as a result of its second-quarter financial performance. Despite reporting a loss of 27 cents per share, slightly higher than estimated, Serve showcased positive growth metrics such as a 106% increase in daily supply hours year-over-year and an 85% rise in daily active robots compared to the previous year.
Serve Robotics made notable strides in its operational activities during the quarter, particularly in manufacturing and partnerships. The company began manufacturing activities for its 2,000-robot fleet, entered a purchase and production agreement with Magna, and expanded its supply agreement with Ouster for enhanced sensor equipment on its robots. Serve also highlighted the completion of a software services agreement with Magna, which contributed $300,000 in revenue during the quarter, although it does not expect significant revenue from this source in the third quarter. Additionally, the company ended the quarter with $28.8 million in cash and cash equivalents, positioning itself well for future growth initiatives.
CEO Ali Kashani expressed optimism for Serve Robotics' future, emphasizing the completion of the design for the third-generation robot and outlining plans for expanding the robot fleet in Los Angeles by deploying at least 250 additional robots by the first quarter of 2025. The company aims to have all 2,000 robots deployed under its agreement with Uber Eats, with potential annual revenues estimated at $60 to $80 million with full utilization. Serve Robotics, having originated as the robotics division of Postmates before becoming an independent entity after Uber's acquisition of Postmates, has attracted attention from investors and industry players, with NVIDIA Corp acquiring a 10% stake in mid-July.