Tempus Reports Strong Revenue Growth and Improved Adjusted EBITDA in Q4 2024
Monday, Feb 24, 2025 5:56 pm ET
5min read Tempus AI, Inc. (NASDAQ: TEM), a leading technology company specializing in AI-driven precision medicine and patient care, reported its fourth quarter and full year 2024 financial results on February 24, 2025. The company's strong performance reflects its strategic focus on AI and its ability to capitalize on the growing demand for precision medicine services.
Fourth Quarter 2024 Highlights:
* Quarterly revenue increased by 35.8% year-over-year to $200.7 million.
* Genomics revenue grew by 30.6% year-over-year to $120.4 million, with unit growth of 22.5%.
* Data and services revenue increased by 44.6% year-over-year to $80.2 million.
* Quarterly gross profit increased by 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.
* Adjusted EBITDA improved to ($7.8 million), compared to ($35.1 million) in the fourth quarter of 2023 and ($21.8 million) in the third quarter of 2024.
TEM
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Full Year 2024 Highlights:
* Annual revenue increased by 30.4% year-over-year to $693.4 million.
* Genomics revenue grew by 24.4% year-over-year to $451.7 million, with unit growth of 23.8%.
* Data and services revenue increased by 43.2% year-over-year to $241.6 million.
* Ended the year with $940 million in remaining Total Contract Value, with net revenue retention of 140%.
* Annual gross profit increased by 33.2% year-over-year to $381.1 million.
* Net loss of ($705.8 million), which included $547.7 million of stock compensation expense and related employer payroll taxes.
* Adjusted EBITDA improved by $49.5 million year-over-year to ($104.7 million).
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, with 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 its network to connect with ~3,000 providers in the U.S.
TEM
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Tempus' strong revenue growth and improved adjusted EBITDA in the fourth quarter of 2024 reflect the company's strategic focus on AI and its ability to capitalize on the growing demand for precision medicine services. The acquisition of Ambry Genetics and the successful launch of the xT CDx device further strengthen Tempus' position in the market. As the company continues to grow its network and expand its offerings, investors can expect robust revenue growth and positive adjusted EBITDA in the coming years.
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