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]

Serve Robotics Inc. (NASDAQ:SERV) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Aduke Thelwell - Head, Communications and IR Ali Kashani - Co-Founder and CEO Brian Read - CFO Conference Call Participants Operator Thank you for standing by. My name is Danielle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fourth Quarter and Full Year 2024 Resort Conference Call. All lines have been placed on mute to prevent any background ...

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 ...

Full year revenue of $1.8 million, an increase of 773% year-over-yearContinued geographic expansion in Los Angeles, successful launch in Miami, and planning entry into Dallas and Atlanta metrosReach increased to over 1,000 restaurants, a 3x increase year-over-year, and to over 300,000 households, a 2x increase year-over-yearEnding 2024 cash of $123 million, no debt; an additional $91m raised in January 2025, bringing the total financing to $259 million since January 2024 SAN FRANCISCO, March 06, 2025 (GLOBE ...

Group 1 - The robotics market is poised to benefit significantly from advancements in artificial intelligence [1] - Recent updates regarding Serve Robotics indicate potential impacts on the company's performance [1]

Group 1: Stock Performance Overview - SoundHound AI and Serve Robotics experienced significant stock declines in February, with drops of 23.5% and 45.7% respectively, while Super Micro Computer's shares surged by 45.4% [1] - Super Micro Computer is classified as a large-cap company with a market cap of $23 billion, whereas Serve Robotics is a small-cap stock with a market cap of under $400 million [2] Group 2: Nvidia's Influence - Nvidia's recent 13F filing revealed it sold its investments in SoundHound and Serve, leading to substantial declines in their stock prices as investors interpreted this as a negative signal for both companies [3][4] - The sale of Nvidia's holdings raised concerns about the future of Serve Robotics, especially after Nvidia disclosed a new investment in Nebius Group, which has its own robotic delivery segment [5] Group 3: Super Micro Computer's Recovery - Super Micro Computer, a supplier of servers and cooling systems for Nvidia hardware, saw a recovery in its stock after filing delayed reports with a new auditor, regaining compliance with Nasdaq [6][7] - Despite the recovery, Super Micro's stock ended February about one-third off its highs for the month, indicating ongoing volatility [7] Group 4: Market Reactions and Future Expectations - The significant stock movements in February are viewed as market overreactions, which is common for these technology stocks that had previously seen gains due to Nvidia's investments [8] - Investors are advised to expect continued volatility from these stocks, as the market may react strongly to news and developments surrounding them [10]

Core Viewpoint - Serve Robotics is expected to report its fourth-quarter 2024 results on March 6, with revenue estimates at $0.27 million and a loss of 19 cents per share remaining unchanged over the past month [1][2]. Financial Performance - In the third quarter of 2024, Serve Robotics generated revenues of $0.22 million, with delivery and branding revenues contributing $0.183 million. Delivery revenues increased by 49% sequentially and 108% year-over-year [4]. - The company operated 59 daily active robots, marking a 23% sequential increase and a 97% year-over-year surge, generating an average of 465 daily supply hours, reflecting a 21% quarter-over-quarter rise and a 108% year-over-year increase [5]. Stock Performance - Since its public equity offering on April 18, 2024, Serve Robotics shares have surged by 160.9%, significantly outperforming the broader Zacks Computer and Technology sector's return of 14.6% and the Zacks IT Services industry's appreciation of 10.1% [6]. - The stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend [10]. Strategic Partnerships and Market Position - Serve Robotics' long-term prospects are bolstered by growing demand for delivery services on partner platforms such as Uber Eats and 7-Eleven. The company has strategic investors including NVIDIA, Uber, and Delivery Hero [11]. - The expanding partner base includes notable companies like Shake Shack, Ouster, Wing Aviation, and Magna, enhancing its competitive position in the last-mile delivery market [12]. Technological Advancements - Serve Robotics' third-generation robots are designed to carry more goods and reduce delivery costs, with the potential to lower average delivery costs to under $1 [13][14]. - The new robots, powered by NVIDIA's Jetson Orin module, offer five times more on-board computing power and can travel approximately twice as far on a single charge [15]. Future Growth Plans - The company plans to deploy 2,000 robots by 2025 through its agreement with Uber, anticipating an annual revenue run rate of $60-$80 million once fully deployed [16]. - Serve Robotics aims to deploy 250 robots in Los Angeles by the end of Q1 2025 and is set to enter Dallas by the end of Q2 2025, with potential expansions into San Diego and Vancouver [17][18]. Conclusion - The expanding portfolio of robots and a strong partner base indicate solid long-term growth potential for Serve Robotics, justifying its premium valuation [19].

Company Overview - Serve Robotics is a leading autonomous sidewalk delivery company that develops AI-powered, low-emissions delivery robots aimed at making delivery sustainable and economical [2] - The company was spun off from Uber in 2021 and has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven [2] - Serve Robotics has scalable multi-year contracts, including an agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets [2] Upcoming Events - The Chief Financial Officer Brian Read will participate in a fireside chat at the Cantor Global Technology Conference on March 11, 2025, at 3:40 pm Eastern Time [1] - The presentation will be webcast on Serve's investor relations website, with a replay available for 30 days following the live presentation [1]

Core Viewpoint - Serve Robotics has experienced a significant stock decline of over 50% following Nvidia's complete divestment of its shares, raising questions about potential investment opportunities ahead of its upcoming financial report [1][2]. Company Overview - Serve Robotics has developed autonomous last-mile delivery robots, utilizing Nvidia's technology, and aims to deploy thousands of these robots in partnership with Uber Eats [2][6]. - The company has achieved over 50,000 deliveries with a 99.94% accuracy rate, demonstrating its operational efficiency compared to human delivery workers [3]. Financial Performance - Serve is projected to report approximately $1.9 million in total revenue for 2024, marking an 820% increase from 2023 [7]. - The forecast for 2025 anticipates revenue growth to $13.3 million, representing a further 598% increase, contingent on the successful deployment of 2,000 robots [8]. Operational Efficiency - Serve's latest Gen3 robot is five times more powerful than its predecessor, with operational costs reduced by up to 50% [4]. - The company aims to lower delivery costs to $1 per order, significantly cheaper than traditional delivery fees on Uber Eats, which can range from zero to $8 [5]. Market Potential - The autonomous food delivery market is projected to reach $450 billion by 2030, indicating substantial growth opportunities for Serve [6]. Financial Challenges - Serve reported a loss of $26.1 million in the first three quarters of 2024, following a $24.8 million loss in 2023, raising concerns about its financial sustainability [9]. - The company raised $80 million in January through stock issuance, which is dilutive for existing shareholders and not a sustainable long-term strategy [10]. Valuation Concerns - Serve Robotics has a market capitalization of $581 million, resulting in a price-to-sales (P/S) ratio of 213.6, significantly higher than Nvidia's P/S ratio of 28.5 [11]. - The forward P/S ratio based on 2025 revenue forecasts remains at 45.1, indicating that Serve's stock is overvalued compared to established companies like Nvidia [11][12].