Serve Robotics Inc.(US:SERV)2025-08-07 22:00Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $641,000, representing a 46% sequential increase from Q1 [25] - Fleet revenue, which includes delivery and branding revenues, grew by $117,000, a 56% increase quarter over quarter [26] - Software revenues increased by 36% to $312,000 [26] - Average daily operating hours per robot rose more than 20% quarter over quarter to 10.8 hours [27] - Adjusted EBITDA was negative $14,900,000 due to operational expansion [31] Business Line Data and Key Metrics Changes - Delivery volume grew nearly 80% compared to Q1, exceeding the company's expectations of 60-70% growth [6] - The fleet size increased to over 400 robots with the deployment of over 120 third-generation robots [7][8] - Daily active robots saw a growth of nearly 120% quarter over quarter [8] - Robot intervention rates decreased by 25% quarter over quarter, indicating improved autonomy [27] Market Data and Key Metrics Changes - The company expanded its market reach to nearly 800,000 households in the US, a fivefold increase since the start of the year [10] - Operations were launched in Atlanta, and coverage was expanded in Los Angeles and Miami [9] - The company plans to launch operations in Chicago, its fifth major metro area, in the coming weeks [12] Company Strategy and Development Direction - The company aims to deploy 2,000 robots across the country by the end of the year, positioning itself as a national autonomous last-mile delivery provider [5][17] - The strategy includes scaling with precision, focusing on operational efficiency and market expansion [11][24] - The company is exploring international markets, having successfully conducted a proof of concept in Doha, Qatar [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2,000 robot deployment milestone and anticipates continued growth in delivery volume [17][22] - The company is focused on building a robust data infrastructure to enhance AI and autonomy capabilities [21] - Management highlighted the importance of operational efficiency and utilization as key priorities moving forward [44] Other Important Information - The company ended the quarter with $183,000,000 in cash and marketable securities, providing flexibility for scaling operations [30] - Capital expenditures for the quarter were $6,000,000, primarily for robot production and market expansion [31] Q&A Session Summary Question: What were key learnings as you optimized the 250 robots deployed in Q1? - The 250 robots helped validate design and manufacturing improvements, leading to enhancements in battery life and drivetrain characteristics [36] Question: Do you expect to further refine the robot? Will we see a Gen four robot in the near term? - The focus will be on scaling efficiently with incremental upgrades rather than launching a new hardware platform every year [38] Question: How do you think about revenue and EBITDA for 2026? - The company is not yet providing guidance for 2026, focusing on executing the deployment of 2,000 robots [40] Question: Can you speak a little bit more about headcount and where it might get to by end of year? - Headcount is expected to grow by about 50% in operations, with significant investment in R&D and software teams [47] Question: Have tariffs affected the cost of components or the timing of receiving them? - There has not been a material impact from tariffs, as cost reductions have helped offset any exposure [49] Question: Can you comment on how you compare to competitors in the autonomy landscape? - The company believes it has a strong position due to its focus on AI and autonomy, and it is committed to building the best autonomous fleet [50]