Tempus AI (TEM) Q4 2024 earnings summary

Executive summary

• Achieved 35.8% year-over-year revenue growth in Q4 2024 and 30.4% for the year, with Q4 revenue at $200.7 million and annual revenue at $693.4 million, led by strong Data and Services performance.

• Gross profit grew 49.7% in Q4 and 33.2% for the year, with Q4 gross profit at $122.1 million and annual gross profit at $381.1 million.

• Net loss for FY 2024 was $(705.8) million, with Q4 net loss at $(13.0) million; Adjusted EBITDA improved to $(7.8) million in Q4 and $(104.7) million for the year.

• Ended 2024 with $940 million in total remaining contract value and 140% net revenue retention, both materially higher than prior periods.

• Closed the acquisition of Ambry Genetics in February 2025, expanding lab presence and capabilities.

Financial highlights

• Q4 2024 revenue: $200.7 million (+35.8% year-over-year); FY 2024 revenue: $693.4 million (+30.4%).

• Q4 gross profit: $122.1 million (+49.7% year-over-year); FY 2024 gross profit: $381.1 million (+33.2%).

• Q4 net loss: $(13.0) million; FY 2024 net loss: $(705.8) million.

• Adjusted EBITDA: $(7.8) million in Q4, $(104.7) million for FY 2024, a $49.5 million improvement over 2023.

• Non-GAAP net loss per share: $(0.18) in Q4, $(1.58) for FY 2024.

Outlook and guidance

• 2025 revenue guidance raised to $1.24 billion, reflecting near 30% core growth and inclusion of Ambry Genetics.

• Adjusted EBITDA guidance for 2025: $5 million, a $110 million improvement over 2024.

• Q1 2025 expected to contribute about 20% of annual revenue, with seasonality similar to prior years.

• No significant synergies from Ambry expected in 2025; Ambry to operate as a standalone business.

• Anticipate reimbursement tailwinds from XF assay and stock compensation/taxes of ~$130 million in 2025.