Serve Robotics Inc. (SERV) took a hit in extended trading Wednesday after delivering third-quarter results that fell short of Wall Street's expectations, despite some impressive growth metrics under the hood.

The Numbers

The sidewalk robotics company posted losses of 40 cents per share, wider than the 33-cent loss analysts had penciled in. Revenue came in at $687,000, just missing the Street's estimate of $691,167.

But here's where things get interesting: delivery volume surged 66% from the previous quarter and exploded 300% compared to the same period last year. That's the kind of growth that suggests the business model is gaining real traction, even if the bottom line isn't pretty yet.

Looking Ahead

CEO Dr. Ali Kashani struck an optimistic tone despite the miss. "In Q3, our team once again delivered on our promises. Significantly, we're on track to achieve our goal of deploying 2,000 robots before the end of the year," he said.

Dr. Kashani went bigger picture from there: "We are now a national leader in sidewalk robotics, advancing towards a 10x increase in revenue next year. This positions Serve to establish the foundation for a future with a million robots deployed globally."

That's quite the ambition—going from 2,000 robots to a million is the kind of hockey stick every startup dreams about.

Market Reaction

Investors weren't buying the optimism Wednesday evening. SERV shares dropped 5.44% to $9.90 in after-hours trading as the market digested the earnings miss.