Tempus AI, Inc., a technology company pioneering the use of AI to promote precision medicine and patient care, announced its financial results for the quarter and year ending December 31, 2024.
- Year-over-year sales growth increased to 35.8% in the fourth quarter of 2024.
- In the fourth quarter of 2024, gross profit growth surged to 49.7%, driven by data and services.
- Finished 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 sales projection to $1.24 billion for 2024 and anticipates full-year 2025. Adjusted EBITDA of about $5 million, an increase of nearly $110 million from 2024
Fourth Quarter Summary Results
- Quarterly sales climbed by 35.8% year on year to $200.7 million in the fourth quarter of 2024.
- Genomics earned $120.4 million in sales in the fourth quarter of 2024, a 30.6% year-over-year increase, with unit growth of 22.5% yearly.
- Data and services earned $80.2 million in sales in the fourth quarter of 2024, up 44.6% year on year.
- Quarterly gross profit climbed by 49.7% to $122.1 million, with data and services leading the way.
- The fourth quarter of 2024 had a net loss of ($13.0 million), which included $32.4 million in stock compensation expense and corresponding employer payroll taxes, 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.
Full-Year 2024 Summary Results:
- Annual revenue climbed by 30.4% yearly to $693.4 million in 2024.
- 2024 genomics earned $451.7 million in sales, a 24.4% year-over-year increase, with 23.8% unit growth.
- Data and services generated $241.6 million in sales in 2024, reflecting a 43.2% year-over-year increase.
- We ended the year with $940 million in Total Contract Value after improving our net revenue retention to 140%.
- Annual gross profit rose to $381.1 million in 2024, a 33.2% rise yearly.
- In 2024, there was a net loss of $705.8 million, which included $547.7 million in stock compensation expenses and corresponding employer payroll taxes.
- Adjusted EBITDA increased by $49.5 million yearly in 2024 to $104.7 million.
Financial guidance and outlook for 2025:
Tempus now estimates full-year sales of about $1.24 billion for the consolidated Tempus and Ambry Genetics businesses, representing approximately 79% annual growth, and Adjusted EBITDA of $5 million for the full year 2025, an increase of nearly $110 million from 2024. For more details on the quarter and year, including a letter from our CEO and CFO, please visit our investor relations website, investors.tempus.com.
