Tempus AI, Inc. Class A ( (TEM) ) has released its Q4 earnings. Here is a breakdown of the information Tempus AI, Inc. Class A presented to its investors.
Tempus AI, Inc. is a technology company that leverages artificial intelligence to enhance precision medicine and patient care, primarily operating within the healthcare sector. The company is known for its extensive library of multimodal data and AI-enabled solutions that aid in personalized patient care and therapeutic development.
Tempus AI recently announced its financial results for the fourth quarter and full year of 2024, showcasing significant growth in revenue and gross profit. The company reported a year-over-year revenue increase of 35.8% in the fourth quarter, with a total revenue of $200.7 million. Additionally, Tempus completed the acquisition of Ambry Genetics, which is expected to bolster its business operations.
Key financial highlights include a 49.7% increase in gross profit for the fourth quarter, driven by the robust performance of its data and services segment. The company ended the year with a total remaining contract value of $940 million and a net revenue retention rate of 140%. Despite a net loss of $13 million in the fourth quarter, Tempus showed improvement in its adjusted EBITDA, which stood at a loss of $7.8 million compared to a $35.1 million loss in the same quarter of the previous year.
For the full year 2024, Tempus reported a 30.4% increase in annual revenue, reaching $693.4 million. The genomics segment generated $451.7 million, marking a 24.4% growth, while the data and services segment saw a 43.2% increase in revenue. The company also launched its FDA-approved diagnostic device, xT CDx, and expanded its network to connect with approximately 3,000 providers in the U.S.
Looking ahead, Tempus AI has raised its revenue guidance for 2025 to $1.24 billion, reflecting a 79% growth expectation. The company anticipates achieving positive adjusted EBITDA of approximately $5 million, indicating a significant improvement over 2024. Tempus remains optimistic about its strategic investments in AI and its potential to drive future growth and innovation in precision medicine.