CHICAGO, February 24, 2025 — Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter and year ended December 31, 2024.

• Revenue growth accelerated to 35.8% year-over-year in the fourth quarter of 2024
• Gross profit growth accelerated to 49.7% in the fourth quarter of 2024, led by Data and Services
• Ended 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 revenue guidance to $1.24 billion for 2025 and expect full year 2025 Adjusted EBITDA of approximately $5 million, an improvement of approximately $110 million over 2024

“Our performance in 2024 reflects the strength of our core businesses, as Genomics continued to show strong volume growth and our Data business delivered record results throughout the year,” said Eric Lefkofsky, Founder and CEO of Tempus. “We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives. We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive Adjusted EBITDA in 2025.”


Fourth Quarter Summary Results

• Quarterly revenue increased 35.8% year-over-year to $200.7 million in the fourth quarter of 2024.
  • Genomics generated $120.4 million in revenue in the fourth quarter of 2024, representing 30.6% year-over-year growth, with unit growth at 22.5% year-over-year.
  • Data and services generated $80.2 million in revenue in the fourth quarter of 2024, representing 44.6% year-over-year growth.
• Quarterly gross profit increased 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 in the fourth quarter of 2024 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.
• Adjusted EBITDA improved to ($7.8 million) in the fourth quarter of 2024, compared to ($35.1 million) in the fourth quarter of 2023 and ($21.8 million) in the third quarter of 2024.

Full Year 2024 Summary Results

• Annual Revenue increased 30.4% year-over-year to $693.4 million in 2024.
  • Genomics generated $451.7 million in revenue in 2024, representing 24.4% year-over-year growth, with unit growth at 23.8% year-over-year.
  • Data and services generated $241.6 million in revenue in 2024, representing 43.2% year-over-year growth.
  • Ended the year with $940 million in remaining Total Contract Value given that our net revenue retention improved to 140%.
• Annual gross profit increased to $381.1 million in 2024, representing 33.2% growth year-over-year.
• Net loss of ($705.8 million) in 2024, which included $547.7 million of stock compensation expense and related employer payroll taxes.
• Adjusted EBITDA improved $49.5 million year-over-year in 2024 to ($104.7 million).

Fourth Quarter 2024 and Recent 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 which was granted ADLT status and 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 our network and are now connected to ~3,000 providers in the U.S.

Fourth Quarter and Full Year 2024 Financial Results

Financial Guidance and 2025 Outlook

Tempus now expects full year 2025 revenue of approximately $1.24 billion for the consolidated Tempus and Ambry Genetics business, which represents approximately 79% annual growth, and Adjusted EBITDA of $5 million for full year 2025, an improvement of approximately $110 million over 2024.

For additional information on the quarter and full year, including a letter from our CEO and CFO, please visit our investor relations site at investors.tempus.com.


Webcast and Conference Call Information

A conference call and webcast will begin today, February 24, 2025, after market close at 4:30 p.m. Eastern Time. Interested parties may access details at:

Conference ID: 9601821

Domestic Dial-in Number: (888)-596-4144

International Dial-in Number: (646)-968-2525

Live Webcast: https://edge.media-server.com/mmc/p/6qbep94p/

The webcast may be accessed on the company’s investor relations website at investors.tempus.com. For those unable to listen to the live webcast, a recording will be made available on the company’s website after the event and will be accessible for one year. Visit the investor relations website to find the company’s latest deck and commentary on the quarter and year by Eric Lefkofsky, Founder and CEO, and Jim Rogers, CFO, which will be discussed on the conference call and webcast.


About Tempus

Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com. 

Non-GAAP Financial Measures

In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures. 

Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the “stock-based compensation adjustments”). Non-GAAP gross margin is defined as gross profit,  excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments. Non-GAAP net income (loss) is defined as net income (loss), adjusted to exclude (i) losses on equity method investments, (ii) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, and (iii) the payment of $ 2.3 million of our Series G-4 convertible preferred stock in connection with the initial public offering (the “G-4 Special Payment”) and (iv) amortization of deferred other income from our IP License Agreement with SB Tempus, (v) the settlement of certain historical and potential future disputes, and (vi) acquisition-related expenses. Non-GAAP net income (loss) per share is defined as adjusted net income (loss) divided by weighted average common shares outstanding, basic and diluted.

EBITDA is defined as net income (loss), adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, and (iv) provision for income taxes. Adjusted EBITDA is defined as net income (loss), adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses on equity method investments, (vi) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (vii) stock-based compensation expense, (viii) employer payroll tax related to stock-based compensation expense, (ix) the G-4 Special Payment, (x) amortization of deferred other income from our IP License Agreement with SB Tempus, (xi) the settlement of certain historical and potential future disputes, and (xii) acquisition related expenses.

Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus’ business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

Tempus does not provide guidance for net loss, the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA, and similarly cannot provide a reconciliation between Tempus’ forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net income (loss) and the respective reconciliations. These forecasted items are not within Tempus’ control, as applicable, may vary greatly between periods, and could significantly impact future financial results.

Other Key Metrics

Total Remaining Contract Value (TCV) is equal to the total potential value of signed contracts and assumes the exercise of all contract options, all discretionary opt-ins, and no early termination. Remaining TCV excludes any revenue recognized to date on these contracts or any future adjustments made to the contractual value as a result of amendments or terminations. 

Net Revenue Retention compares the annual Insights product revenue generated from all customers that made an Insights purchase in one year to the annual Insights product revenue generated from the same cohort of customers in the subsequent year.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempusand its industry  that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus’ expected financial results for full year 2024 and Ambry’s expected financial results for calendar year 2025; whether investments in AI have positioned Tempus well for the future; and the ability of Tempus’ diagnostics to help patients live longer and healthier lives. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus’ products and services; Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments, including Tempus’ ability to realize the expected benefits of the  acquisition of Ambry Genetics; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’  Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on February 24, 2025, as well as in other filings Tempus may make with the SEC in the future. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Contacts

Tempus Communications
Erin Carron
media@tempus.com

Tempus Investor Relations
Elizabeth Krutoholow
elizabeth.krutoholow@tempus.com

Source: Tempus AI, Inc.

Tempus AI, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share amounts)

Tempus AI, Inc.

CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except per share amounts)

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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands, except percentages and per share amounts)

Genomics Gross Profit & Gross Margin

Data and Services Gross Profit & Gross Margin

Total Gross Profit & Gross Margin

Operating Expenses

Earnings per Share

(1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities.

(2) Acquisition related expenses consist of legal and diligence costs incurred for the acquisition of Ambry.

Adjusted EBITDA

(1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities. 

(2) Settlement costs for the year ended December 31, 2023 include $0.2 million paid to settle a 2019 payment dispute and $8.5 million in costs accrued related to potential future settlements. 

(3) Acquisition related expenses consist of legal and diligence costs incurred for the acquisition of Ambry during the year ended December 31, 2024, and for the acquisitions of Mpirik, Inc. and SEngine Precision Medicine LLC during the year ended December 31, 2023.