Core Viewpoint - Serve Robotics (SERV) has experienced a significant decline in share price, dropping 52.9% over the past three months, which is a stark contrast to the performance of the broader market and technology sector [1][2]. Financial Performance - SERV reported a loss of 36 cents per share in Q4 2024, which was worse than the Zacks Consensus Estimate of a loss of 19 cents. Additionally, estimates for 2025 have been revised downward by 17 cents to a projected loss of 83 cents per share [7]. - The company has never turned a profit since its establishment in 2021, indicating ongoing financial struggles [9][10]. Customer Concentration Risk - As of December 31, 2024, SERV's revenue is heavily reliant on two customers, Magna and Uber, which together account for 91% of total revenues. This high dependence poses a risk to sales and profitability if either customer is lost [8][9]. Competitive Landscape - The autonomous last-mile delivery market is becoming increasingly competitive, with major players like Amazon and Alphabet entering the space. These larger companies have significant financial resources that allow for longer R&D cycles, putting smaller companies like SERV at a disadvantage [11][12]. - SERV faces challenges in navigating regulatory issues and improving its technological expertise compared to its larger competitors [13]. Valuation Concerns - SERV's stock is currently trading at a premium, indicated by a Value Score of F, despite the recent drop in share price. The company has a high forward 12-month price-to-earnings (P/S) ratio compared to the industry [14]. Technical Indicators - Technical indicators for SERV suggest a bearish trend, as the stock is trading below both the 50-day and 200-day moving averages, which are key levels for assessing short-term momentum [17][18]. Conclusion - Given the macroeconomic challenges, competitive pressures, customer concentration risks, and disappointing financial results, the outlook for SERV appears negative, leading to a recommendation for investors to avoid the stock [19][20].

Core Viewpoint - Serve Robotics has experienced a volatile year, marked by new partnerships and product launches in the U.S., raising questions about its long-term viability as a business [1] Company Overview - Serve Robotics is currently under scrutiny to determine if it represents a significant investment opportunity or if it may be another failure in the hardware sector from Silicon Valley [1] Financial Performance - The financials of Serve Robotics are being analyzed to assess the company's potential for growth and sustainability in the market [1]

Core Viewpoint - U.S. stocks have underperformed expectations in 2025 due to President Trump's return to protectionist policies, impacting leading tech companies that have driven S&P 500 performance since October 2022 [1] Group 1: AI Stocks Opportunity - AI stocks present valuable investment opportunities despite recent corrections, with a focus on long-term potential [2] - Archer Aviation, with a market cap of $4.4 billion, is positioned as a compelling investment due to its strategic partnerships and AI integration for aviation systems [3][4] - Archer has secured its first customer, Abu Dhabi Aviation, for its commercialization program, indicating strong commercial potential in defense and aviation markets [4] - With over $1 billion in liquidity, Archer has a robust balance sheet to support its AI-driven vision for future flight [5] - The projected market for AI and electric aviation could reach $1 trillion by 2040, enhancing Archer's growth prospects [6][7] Group 2: Serve Robotics Innovation - Serve Robotics, despite a 46% decline year-to-date, is innovating last-mile delivery with AI-powered robots, showcasing a 773% year-over-year revenue growth to $1.8 million in 2024 [8] - The company is expanding its operational footprint and has designed third-generation robots with enhanced capabilities and reduced manufacturing costs [9][10] - Serve has secured partnerships with major companies, expanding its reach to over 1,000 restaurants and 300,000 households, and has significant cash reserves to support its growth plans [10] - The combination of revenue growth potential and decreasing unit costs positions Serve for a clear path to profitability as its robot fleet scales [11] Group 3: Risk and Reward Considerations - Both Archer and Serve face regulatory and operational challenges that could impact their growth trajectories, despite their strong cash positions [12] - Current market valuations may reflect these risks, presenting a potential entry point for investors willing to navigate volatility [13] - The ongoing uncertainty in the market is viewed as an opportunity to accumulate shares in these innovative AI companies [14]

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end Q1, consider joining Out Fox The Street .Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SERV over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not re ...

Financial Data and Key Metrics Changes - Revenue for 2024 reached $1.8 million, representing a 700% increase year over year [8][53] - Gross margin improved from negative 700% in 2023 to negative 4% in 2024, reflecting increased fleet efficiency and a favorable revenue mix [55] - GAAP net loss for 2024 was $39.2 million compared to $24.9 million in 2023, with Q4 GAAP net loss at $13.1 million [61][62] Business Line Data and Key Metrics Changes - Software services contributed $1.2 million to revenue in 2024, with delivery and branding revenue increasing by 227% year over year [53][54] - Daily active robots increased to 57 in Q4, up 81% from 29 in Q4 2023 [16] - Delivery volume increased by 20% quarter over quarter despite a reduction in fleet size for expansion activities [15] Market Data and Key Metrics Changes - The company expanded its market reach by increasing the number of restaurants served by 3x and households reached by over 2x in the last four months [8][12] - The company launched operations in Miami, marking its first expansion to the East Coast [9][20] Company Strategy and Development Direction - The company plans to deploy 2,000 robots by the end of 2025, with a focus on scaling operations and improving capital efficiency [7][67] - Cost reductions in robot manufacturing have been achieved through supply chain improvements, with future batches expected to be 30% cheaper than the current generation [30][35] - The company aims to build redundancy into its plans to mitigate risks from external factors [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for robots, citing significant cost reductions in last-mile delivery as a driver for growth [97] - The company is preparing for a major scale-up in the second half of 2025, focusing on operational readiness and market expansion [33][67] Other Important Information - The company ended 2024 with a cash position of $123 million and is no longer anticipating funding its robot fleet through equipment financing, saving approximately $20 million [62][64] - The audit committee approved the transition to PricewaterhouseCoopers as the independent auditor, reflecting a commitment to robust financial oversight [70] Q&A Session Summary Question: How was the cost reduction achieved? - The cost reduction was primarily due to improvements in the supply chain and benefits from scale, not from removing technologies or components [74] Question: Why focus on the second half for the robot rollout? - The focus is on a thoughtful and measured scale-up to ensure cost efficiency and learning throughout the process [77] Question: Any impact from recent policy changes and tariffs? - Currently, no material impact is anticipated, and the company is diversifying its supply chain to mitigate risks [84] Question: Impact of recent wildfires in LA? - The impact was minimal and brief, with no effect on rollout plans [87] Question: Update on the Vivo acquisition? - The deal is currently on pause due to issues with closing conditions, but discussions are ongoing [89] Question: How are things going in Miami? - Utilization of robots is good, with 50 restaurants onboarded and metrics ahead of schedule [91] Question: Update on Gen 3 robot performance? - Early results are positive, with better performance compared to previous generations [94] Question: Expectations for 2026 and beyond? - Strong demand for robots is expected in existing and new markets, driven by cost reductions in last-mile delivery [97]

Group 1 - Serve Robotics Inc. held its Fourth Quarter and Full Year 2024 Earnings Conference Call on March 6, 2025 [1] - The call featured key participants including CEO Ali Kashani and CFO Brian Read [3] - The company presented both GAAP and non-GAAP financial measures during the call, with reconciliations available in the earnings release [3] Group 2 - The company emphasized the importance of reviewing their quarterly financial press release and updated corporate presentation available on their Investor website [4]

Financial Data and Key Metrics Changes - Revenue for 2024 reached $1.8 million, representing a 700% increase year over year [8][53] - Gross margin improved from negative 700% in 2023 to negative 4% in 2024, reflecting increased fleet efficiency and a favorable revenue mix [55] - GAAP net loss for 2024 was $39.2 million compared to $24.9 million in 2023, with Q4 GAAP net loss at $13.1 million [61][62] Business Line Data and Key Metrics Changes - Software services contributed $1.2 million in revenue in 2024, driving significant growth [53] - Delivery and branding revenue increased by 227% year over year, reaching $627,000 in 2024 [54] - Daily active robots increased to 57 in Q4, up 81% from 29 in Q4 2023 [16] Market Data and Key Metrics Changes - The number of restaurants served increased by 3x in 2024, with over 1,000 restaurants supported [12][8] - Households reached doubled in just a few months, exceeding 300,000 [12] - Expansion into Miami marked the first entry into the East Coast, with 50 local restaurants onboarded [21][91] Company Strategy and Development Direction - The company plans to deploy 2,000 robots by the end of 2025, with a focus on scaling operations and improving capital efficiency [7][67] - Cost reductions in robot manufacturing have been achieved, with a 30% reduction expected in the next batch compared to the current batch [29][30] - The strategy includes thoughtful scaling and preparation for a significant growth push in the second half of 2025 [33][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for robots, citing strong growth in existing and new markets [97] - The company is focused on operational readiness for the second half of 2025, anticipating volume and revenue growth in the first half [33][68] - Management emphasized the importance of building redundancy into plans to mitigate risks from external factors [34] Other Important Information - The company ended 2024 with a cash position of $123 million and is debt-free, allowing for greater financial flexibility [62][64] - A new shelf registration and at-the-market equity program have been established to support future growth opportunities [65][66] - The audit committee approved the transition to PricewaterhouseCoopers as the independent auditor, enhancing financial oversight [70] Q&A Session Summary Question: How was the cost reduction achieved? - The cost reduction was primarily due to improvements in the supply chain and better component pricing, not through the removal of technologies or components [74][75] Question: Why focus on the second half for the robot rollout? - The focus is on a gradual and cost-efficient scale-up to learn and fix issues along the way [77][78] Question: Can you comment on recent developments with NVIDIA? - The partnership with NVIDIA remains strong, and their technology continues to be utilized in the company's robots [81][82] Question: Do you anticipate any impact from planned policy changes and tariffs? - Currently, no material impact is anticipated, and the company is diversifying its supply chain to mitigate risks [84][85] Question: Any impact from recent wildfires in LA? - The impact was minimal and brief, with no significant effect on rollout plans [87] Question: Update on the Vivo acquisition? - The deal is currently on pause due to issues with closing conditions, but discussions are ongoing [89] Question: How are things going in Miami? - Utilization of robots in Miami is good, with 50 restaurants onboarded and metrics ahead of schedule [91] Question: Update on Gen 3 robot performance? - Early results for Gen 3 robots are positive, with better performance compared to previous generations [95] Question: Expectations for 2026 and beyond? - Strong demand for robots is expected to continue, driven by significant cost reductions in last-mile delivery [97]

Financial Performance - For the years ended December 31, 2024 and 2023, the company generated revenue of $1.81 million and $0.21 million, respectively, while incurring net losses of $39.19 million and $24.81 million[76]. - Total revenues for 2024 were $1,812,483, a significant increase from $207,545 in 2023, representing a growth of approximately 770%[318]. - The gross loss for 2024 was $(75,156), compared to a gross loss of $(1,522,717) in 2023, indicating an improvement in gross margin[318]. - The net loss for 2024 was $(39,191,052), compared to $(24,813,736) in 2023, resulting in a net loss per share of $(1.07) versus $(1.75) in the previous year[318]. - Cash and cash equivalents surged to $123,266,437 in 2024 from $6,756 in 2023, indicating a substantial increase in liquidity[316]. - Total assets grew to $139,600,873 in 2024, up from $2,804,549 in 2023, marking a significant expansion of the company's asset base[316]. - Total liabilities increased to $7,919,959 in 2024 from $6,837,955 in 2023, reflecting a rise of approximately 15.8%[316]. - The additional paid-in capital rose dramatically to $239,201,220 in 2024 from $64,468,141 in 2023, showing strong investor confidence[316]. - The company reported a weighted average of 36,658,834 common shares outstanding in 2024, compared to 14,204,078 in 2023, indicating a dilution effect due to increased share issuance[318]. - The company has not reported any income tax provision for both years, indicating ongoing net losses[318]. Revenue Sources - A significant portion of the company's revenue is concentrated with two customers, Magna and Uber, accounting for 91% and 71% of total revenue for the years ended December 31, 2024 and 2023, respectively[82]. - The company anticipates that 16% and 22% of its revenues for the years ended December 31, 2024 and 2023, respectively, came from out-of-home (OOH) advertising campaigns[94]. - Revenue from software services amounted to $1,185,903 for the twelve months ended December 31, 2024, with no revenue reported for 2023[370]. - Delivery services revenue increased to $332,180 in 2024 from $146,462 in 2023, reflecting a growth of approximately 126%[370]. - Branding fees revenue rose to $294,400 in 2024, compared to $45,250 in 2023, indicating a growth of approximately 552%[370]. Operational Challenges - The company has faced challenges due to a global semiconductor shortage, impacting its ability to manufacture robots and meet production timelines[88]. - Global supply chain issues have delayed the increase in the number of robots in the fleet, impacting production capabilities[103]. - The company relies on third-party delivery platforms and brand sponsors for revenue, with current utilization levels needing improvement to achieve profitability[93]. - The company may face difficulties in attracting and retaining qualified personnel, which is critical for its growth and operational success[89]. - The company has limited experience in large-scale commercialization of robotic systems, which may hinder efficient market penetration and sales growth[101]. Regulatory and Compliance Risks - Regulatory changes regarding personal delivery devices (PDDs) could impact market expansion and operational capabilities in new jurisdictions[107]. - The company is subject to tariffs and changing trade relations, which could increase operational costs and adversely affect financial performance[106]. - The company is subject to evolving global privacy legislation, such as the GDPR, which could result in penalties of up to 4% of worldwide revenue for non-compliance[128]. - Compliance with evolving data privacy laws, such as the CCPA and GDPR, may increase operational costs and potential liabilities[170]. - The company faces substantial penalties for noncompliance with data protection laws, which could reach up to €20 million or 4% of worldwide turnover for serious violations under GDPR[170]. Cybersecurity and Data Management - Security breaches and cyber-attacks pose significant risks to the company's proprietary information, potentially harming its competitive position and incurring substantial costs[125]. - Cybersecurity risks pose a threat to operational systems and sensitive data, with potential disruptions from unauthorized access or attacks[161]. - The company is implementing systems to protect data and prevent security breaches, but these measures cannot guarantee complete security[164]. - Any security breach could harm the company's reputation, reduce product demand, and lead to significant legal and financial exposure[166]. Growth and Future Outlook - The company plans to expand its operations significantly, including hiring additional personnel and enhancing its engineering and product teams[78]. - Future capital needs may require the company to raise additional equity or debt financing, which could dilute existing shareholders or impose unfavorable terms[129]. - The company may need to curtail or abandon growth plans if it cannot raise additional funds, adversely impacting its business and financial condition[133]. - The company expects to fund operations for at least the next twelve months through a combination of cash flows from operating activities and available cash balances[333]. - The company may seek additional working capital through equity sales or debt financing if current cash and cash flows are insufficient for future needs[335]. Internal Controls and Governance - The company completed a merger on July 31, 2023, which required significant time and resources for the design and implementation of internal controls over financial reporting[186]. - As of December 31, 2024, the company identified material weaknesses in its internal controls over financial reporting, indicating a risk of material misstatements in financial statements[186][187]. - The company is required to disclose any material weaknesses in internal control over financial reporting in its annual report, which could affect investor confidence[184][188]. - The management team has limited experience operating as a publicly traded company, which may hinder effective compliance with regulatory obligations[179]. - The company has not established a comprehensive accounting and financial reporting policies manual, which contributes to the identified material weaknesses[187]. Market and Competitive Landscape - Competitors may have greater resources and market recognition, potentially impacting the company's ability to attract customers and maintain competitiveness[116]. - The company faces risks associated with product defects and recalls, which could lead to significant costs and damage to reputation[111]. - The core products' benefits and projected return on investment have not been substantiated through long-term trials or use, raising concerns about their performance and market competitiveness[142]. - The adoption and use of robotic systems may be negatively impacted if customers resist or delay their use due to lack of confidence in autonomous delivery vehicles[143]. - The ability to manufacture products of sufficient quality on schedule is uncertain, and outsourcing manufacturing may affect operational flexibility[154].

Exhibit 99.1 Serve Robotics Announces Fourth Quarter and Full Year 2024 Results SAN FRANCISCO, March 6, 2025 — Serve Robotics Inc. (the "Company" or "Serve") (Nasdaq: SERV), a leading autonomous sidewalk delivery company, today announced financial results for the fourth quarter and full year 2024 ended December 31, 2024. "2024 was a transformational year for Serve. We doubled the delivery capacity of our existing fleet, completed the design of a new generation of more capable and cost-efficient robots, bega ...

Core Insights - Serve Robotics Inc. reported a transformational year in 2024, achieving significant milestones in delivery capacity, robot design, manufacturing, and partnerships, positioning the company for continued growth with plans to deploy 2,000 robots across the U.S. by year-end 2025 [2]. Business Highlights - The company doubled its delivery capacity and volume through improved geographic reach and operational efficiencies [6]. - Expanded operational footprint in 2024, launching services in Los Angeles and Miami, with plans to enter Dallas and Atlanta by Q2 2025 [6]. - Completed the design of a third-generation robot with enhanced capabilities, including increased speed, distance, and AI computing power, at a reduced manufacturing cost [6]. - Entered into scale manufacturing with Magna International, delivering the first 75 new robots ahead of schedule [6]. - Expanded partnerships, reaching over 1,000 restaurants and 300,000 households, including a collaboration with Shake Shack and Wing Aviation for multi-modal delivery [6]. Financial Highlights - Full year revenue reached $1.8 million, a 773% increase year-over-year, with Q4 contributing $176,000 [5]. - Ending cash position for 2024 was $123 million, with no debt, and an additional $91 million raised in January 2025, totaling $259 million in financing since January 2024 [5]. - Daily supply hours grew to 455 in Q4 2024, representing a 94% annual increase, and daily active robots increased by 81% year-over-year [6]. - The company reported a net loss of $39.2 million for the year, compared to a loss of $24.8 million in 2023 [24][28]. Operational Metrics - Daily active robots averaged 57 in Q4 2024, up from 34 in Q4 2023 [11]. - Daily supply hours averaged 455 in Q4 2024, compared to 260 in Q4 2023 [12]. - The company achieved a gross loss of $75.2 million for the year, with total operating expenses of $38.2 million [24].