Original from: Tempus

 

Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter and year ended December 31, 2024.

 

· Revenue growth accelerated to 35.8% year-over-year in the fourth quarter of 2024

· Gross profit growth accelerated to 49.7% in the fourth quarter of 2024, led by Data and Services 

· Ended the year with $940 million in Total Remaining Contract Value and 140% net revenue retention

· Closed the acquisition of Ambry Genetics on February 3, 2025

· Increases revenue guidance to $1.24 billion for 2025 and expect full year 2025 Adjusted EBITDA of approximately $5 million, an improvement of approximately $110 million over 2024

 

“Our performance in 2024 reflects the strength of our core businesses, as Genomics continued to show strong volume growth and our Data business delivered record results throughout the year,” said Eric Lefkofsky, Founder and CEO of Tempus. “We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives. We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive Adjusted EBITDA in 2025.”


Fourth Quarter Summary Results

· Quarterly revenue increased 35.8% year-over-year to $200.7 million in the fourth quarter of 2024.

    Genomics generated $120.4 million in revenue in the fourth quarter of 2024, representing 30.6% year-over-year growth, with unit growth at 22.5% year-over-year.

    Data and services generated $80.2 million in revenue in the fourth quarter of 2024, representing 44.6% year-over-year growth.

· Quarterly gross profit increased 49.7% to $122.1 million, led by Data and services. 

· Net Loss of ($13.0 million), which included $32.4 million of stock compensation expense and related employer payroll taxes in the fourth quarter of 2024 compared to a net loss of ($50.5 million) in the fourth quarter of 2023 and a net loss of ($75.8 million) in the third quarter of 2024.

· Adjusted EBITDA improved to ($7.8 million) in the fourth quarter of 2024, compared to ($35.1 million) in the fourth quarter of 2023 and ($21.8 million) in the third quarter of 2024.

Full Year 2024 Summary Results

· Annual Revenue increased 30.4% year-over-year to $693.4 million in 2024.

    Genomics generated $451.7 million in revenue in 2024, representing 24.4% year-over-year growth, with unit growth at 23.8% year-over-year.

    Data and services generated $241.6 million in revenue in 2024, representing 43.2% year-over-year growth.

    Ended the year with $940 million in remaining Total Contract Value given that our net revenue retention improved to 140%.

· Annual gross profit increased to $381.1 million in 2024, representing 33.2% growth year-over-year.

· Net loss of ($705.8 million) in 2024, which included $547.7 million of stock compensation expense and related employer payroll taxes.

· Adjusted EBITDA improved $49.5 million year-over-year in 2024 to ($104.7 million).

Fourth Quarter 2024 and Recent Operational Highlights

· Completed the acquisition of Ambry Genetics on February 3, 2025.

· Announced the national launch of the Company’s FDA-approved, NGS-based in vitro diagnostic device, xT CDx which was granted ADLT status and a reimbursement rate of $4,500 per test.

· Announced the impact of a decision by the Centers for Medicare and Medicaid Services (CMS) that will allow reimbursement for cardiac dysfunction assessments using the Tempus ECG-AF algorithm, currently paying $138/algorithm.

· Signed agreements for in-network provider status with Blue Cross Blue Shield of Illinois, Blue Shield of California, and Avalon Healthcare Solutions.

· Grew our network and are now connected to ~3,000 providers in the U.S.

 

Fourth Quarter and Full Year 2024 Financial Results

 

Financial Guidance and 2025 Outlook

Tempus now expects full year 2025 revenue of approximately $1.24 billion for the consolidated Tempus and Ambry Genetics business, which represents approximately 79% annual growth, and Adjusted EBITDA of $5 million for full year 2025, an improvement of approximately $110 million over 2024.

 

Source: Tempus Reports Fourth Quarter and Full Year 2024 Results