Serve Robotics Inc (NASDAQ:SERV) shares are moving higher in Tuesday's after-hours session on the heels of the company's second-quarter financial results.

• Q2 Revenue: $468,375, versus estimates of $400,000

• Q2 EPS: Loss of 27 cents, versus estimates for a loss of 25 cents

Serve averaged 385 daily supply hours during the second quarter, representing a 106% increase year-over-year. The company noted that it also achieved an 85% increase in daily active robots on a year-over-year basis.

Serve said it commenced manufacturing activities on its 2,000-robot fleet in the second quarter, entered into a purchase and production agreement with Magna and signed an amendment expanding its supply agreement with Ouster to equip its robots with upgraded sensors.

Serve Robotics noted $300,000 of its software services revenue came from the company's software services agreement with Magna. The services contract with Magna was significantly completed during the second quarter, so the company doesn't anticipate material software services revenue in the third quarter.

Serve Robotics ended the quarter with $28.8 million in cash and cash equivalents.

"I am particularly pleased to announce that Serve has completed the design of our third-generation robot. Looking ahead, we are focused on executing Serve's fleet expansion plan to deploy at least 250 additional robots in Los Angeles by the end of Q1 2025," said Ali Kashani, co-founder and CEO of Serve Robotics.

"We believe our continued execution of this plan through year-end 2025 will position Serve to deploy all 2,000 robots under our Uber Eats agreement, which at full utilization is expected to generate $60 to $80 million in run-rate revenue annually."

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Serve Robotics went public via reverse merger with Patricia Acquisition Corp. According to TechCrunch, Serve Robotics was initially started as the robotics division of Postmates. The autonomous sidewalk robots started delivering to Postmates customers in 2018, but when Uber acquired Postmates in 2020, the robotics division was spun out as Serve Robotics.

Serve Robotics shares have seen increased attention in recent weeks leading up to earnings, rising more than 330% over the past month. NVIDIA Corp (NASDAQ:NVDA) reported a 10% stake in the robotics company in mid-July.

SERV Price Action: At publication time, Serve Robotics shares were up 11.38% at $11.55 in extended trading, according to Benzinga Pro.

Photo: courtesy of Serve Robotics.