Shares of Serve Robotics Inc. (SERV) tumbled 5.35% in after-hours trading on Wednesday following the release of the company's third-quarter earnings report. Despite showing significant growth in several key metrics, the autonomous sidewalk delivery company's 2025 revenue forecast fell short of analyst expectations, dampening investor enthusiasm.
For the third quarter, Serve Robotics reported revenue of $687,000, a 209% increase compared to the same period last year but slightly missing the analyst consensus estimate of $691,167. The company's delivery volume grew impressively, up 66% quarter-over-quarter and 300% year-over-year. Serve Robotics also highlighted its expansion, including a new multi-year partnership with DoorDash and the launch of operations in Chicago, now serving over 3,600 restaurants across the U.S.
However, the primary driver of the stock's after-hours decline appears to be the company's revenue guidance for fiscal year 2025. Serve Robotics forecasts generating over $2.5 million in revenue for 2025, significantly below analysts' average estimate of $4.14 million. This conservative outlook overshadowed the company's more optimistic projection of 10 times revenue growth in 2026. Despite the promising long-term potential, the near-term revenue shortfall seems to have prompted a sell-off among investors looking for faster growth in the coming year.
Comments