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Highlights
- Q4 2024 revenue up 35.8%, driven by growth in Genomics and Data Services.
- FDA approval for xT CDx diagnostic device boosts outlook with $4,500 reimbursement rate.
- Tempus forecasts 79% revenue growth for 2025, with positive Adjusted EBITDA.
Tempus AI (NASDAQ:TEM), a leader in AI-powered precision medicine, reported strong results for Q4 2024, with revenue increasing by 35.8% year-over-year to $200.7 million. The company’s performance was driven by growth in its two primary segments: Genomics, which generated $120.4 million (+30.6% YoY), and Data and Services, which reached $80.2 million (+44.6% YoY).
In Q4 2024, Tempus also experienced significant improvement in profitability metrics. Gross profit grew by 49.7%, reaching $122.1 million. Meanwhile, the company reduced its net loss to ($13.0 million), a marked improvement from the ($50.5 million) net loss reported in Q4 2023. For the full year 2024, Tempus reported a 30.4% increase in revenue to $693.4 million, with Genomics contributing $451.7 million and Data Services contributing $241.6 million.
Key Developments and Strategic Moves
Tempus also made notable strategic moves in early 2025, including the completion of its acquisition of Ambry Genetics on February 3, 2025. The acquisition positions Tempus to further strengthen its Genomics offerings, adding to its portfolio of services for precision medicine. Additionally, Tempus received FDA approval for its xT CDx diagnostic device, which comes with a $4,500 reimbursement rate. This approval is expected to further drive growth in Tempus’ Genomics segment.
- Revenue Growth Accelerated to 35.8% in Q4 2024: Tempus posted impressive quarterly growth, with its overall revenue expanding at a faster rate compared to prior periods.
- Gross Profit Increased 49.7%: The company’s gross profit growth outpaced its revenue growth, demonstrating improved efficiency in its operations.
- Net Revenue Retention Improved to 140%: This highlights the company's ability to expand its existing customer relationships and generate additional revenue from current clients.
- FDA Approval for xT CDx with $4,500 Reimbursement Rate: The approval is a major milestone for Tempus, allowing it to capitalize on new revenue streams within the Genomics space.
- 2025 Projected Revenue Growth of 79%: Tempus anticipates strong momentum in the coming year, with substantial revenue growth driven by its Genomics and Data Services segments.
- Expected Positive Adjusted EBITDA in 2025: Tempus is poised to turn a significant corner, projecting positive Adjusted EBITDA for 2025, a substantial improvement over its negative performance in 2024.
- Net Loss of $705.8 Million in 2024: Despite the growth in revenue, Tempus reported a large net loss for the year, indicating the company’s ongoing investments in research and expansion have yet to be fully offset by profits.
- Q4 2024 Adjusted EBITDA Still Negative at ($7.8 Million): While Tempus has improved in several areas, it still faced negative Adjusted EBITDA in Q4 2024, reflecting challenges in achieving operational profitability.
- High Stock Compensation Expense of $547.7 Million in 2024: The company’s substantial stock-based compensation costs remain a significant expense, which could be a concern for investors evaluating its financial health and long-term sustainability.
Looking ahead, Tempus is projecting significant growth for 2025. The company expects revenue to increase by 79%, reaching $1.24 billion, and projects a positive Adjusted EBITDA of $5 million for the year, marking a $110 million improvement over 2024.
