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.
- Year-over-year revenue growth accelerated to 35.8% 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 2024 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 of 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 of 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
Three Months Ended December
31, 2024
Year Ended December 31,
2024
(in thousands, except
percentages and per share amounts)
(unaudited)
GAAP Results
Revenue
$
200,680
$
693,398
Year-over-year growth
35.8
%
30.4
%
Gross Profit
$
122,064
$
381,113
Loss from operations
$
(50,700
)
$
(691,082
)
Net loss
$
(13,014
)
$
(705,809
)
Adjusted EBITDA
$
(7,752
)
$
(104,707
)
Net loss per share attributable to common
shareholders, basic and diluted
$
(0.08
)
$
(6.23
)
Non-GAAP net loss per share
$
(0.18
)
$
(1.58
)
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 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, (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”), (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, 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 Tempus and 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 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.
Tempus AI, Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per
share amounts)
Year Ended December
31,
2024
2023
2022
Net revenue
Genomics
$
451,749
$
363,022
$
197,984
Data and services
241,649
168,800
122,684
Total net revenue
$
693,398
$
531,822
$
320,668
Cost and operating expenses
Cost of revenues, genomics
243,467
189,165
150,255
Cost of revenues, data and services
68,818
56,482
40,227
Technology research and development
167,519
95,155
79,093
Research and development
149,325
90,343
83,158
Selling, general and administrative
755,351
296,760
233,377
Total cost and operating expenses
1,384,480
727,905
586,110
Loss from operations
$
(691,082
)
$
(196,083
)
$
(265,442
)
Interest income
11,084
7,601
3,032
Interest expense
(53,653
)
(46,869
)
(21,894
)
Other income (expense), net
32,336
21,822
(4,846
)
Loss before provision for income taxes
$
(701,315
)
$
(213,529
)
$
(289,150
)
Provision for income taxes
(266
)
(288
)
(66
)
Losses from equity method investments
(4,228
)
(301
)
(595
)
Net Loss
$
(705,809
)
$
(214,118
)
$
(289,811
)
Accretion of convertible preferred stock
to redemption value
—
(4,338
)
(301
)
Dividends on Series A, B, B-1, B-2, C, D,
E, F, G, G-3, and G-4 preferred shares
(39,347
)
(44,497
)
(40,975
)
Cumulative undeclared dividends on Series
C preferred shares
(1,174
)
(3,011
)
(2,841
)
Net loss attributable to common
shareholders, basic and diluted
(746,330
)
(265,964
)
(333,928
)
Net loss per share attributable to common
shareholders, basic and diluted
$
(6.23
)
$
(4.20
)
$
(5.30
)
Weighted-average shares outstanding used
to compute net loss per share, basic and diluted
119,849
63,306
63,032
Comprehensive Loss, net of tax
Net loss
$
(705,809
)
$
(214,118
)
$
(289,811
)
Foreign currency translation
adjustment
89
(13
)
29
Comprehensive loss
$
(705,720
)
$
(214,131
)
$
(289,782
)
Tempus AI, Inc.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share amounts)
December 31, 2024
December 31, 2023
Assets
Current Assets
Cash and cash equivalents
$
340,954
$
165,767
Accounts receivable, net of allowances of
$1,141 and $1,115 at December 31, 2024 and December 31, 2023,
respectively
154,819
94,462
Inventory
38,386
28,845
Warrant asset
—
5,070
Prepaid expenses and other current
assets
26,135
17,295
Marketable equity securities
107,309
31,807
Deferred offering costs
—
7,085
Total current assets
$
667,603
$
350,331
Property and equipment, net
58,056
61,681
Goodwill
73,343
73,354
Warrant asset, less current portion
—
4,930
Intangible assets, net
11,716
21,916
Investments and other assets
8,305
8,971
Investment in joint venture
91,450
—
Warrant contract asset, less current
portion
—
21,499
Operating lease right-of-use assets
14,762
20,530
Restricted cash
881
840
Total Assets
$
926,116
$
564,052
Liabilities, Convertible redeemable
preferred stock, and Stockholders' equity (deficit)
Current Liabilities
Accounts payable
53,804
54,421
Accrued expenses
130,407
82,517
Deferred revenue
75,981
64,860
Deferred other income
15,955
—
Other current liabilities
6,964
8,213
Operating lease liabilities
6,459
6,437
Accrued data licensing fees
1,500
6,382
Accrued dividends
—
9,797
Total current liabilities
$
291,070
$
232,627
Operating lease liabilities, less current
portion
26,199
32,040
Convertible promissory note
168,192
193,124
Warrant liability
—
34,500
Other long-term liabilities
15,980
19,751
Interest payable
70,450
55,321
Long-term debt, net
267,244
256,541
Deferred other income, less current
portion
23,932
—
Deferred revenue, less current portion
6,710
16,768
Total Liabilities
$
869,777
$
840,672
Commitments and contingencies (Note 7)
Convertible redeemable preferred stock,
$0.0001 par value, no and 69,803,765 shares authorized at December
31, 2024 and December 31, 2023, respectively; no and 63,525,953
shares issued and outstanding at December 31, 2024 and December 31,
2023, respectively; aggregate liquidation preference of $0 and
$1,130,429 at December 31, 2024 and December 31, 2023,
respectively
—
1,105,543
Stockholders' equity (deficit)
Class A Voting Common Stock, $0.0001 par
value, 1,000,000,000 and 200,228,024 shares authorized at December
31, 2024 and December 31, 2023, respectively; 157,076,972 and
58,367,961 shares issued and outstanding at December 31, 2024 and
December 31, 2023, respectively
16
$
6
Class B Voting Common Stock, $0.0001 par
value, 5,500,000 and 5,374,899 shares authorized at December 31,
2024 and December 31, 2023, respectively; 5,043,789 and no shares
issued and outstanding at December 31, 2024 and December 31, 2023,
respectively
1
—
Non-voting Common Stock, $0.0001 par
value, no and 66,946,627 shares authorized at December 31, 2024 and
December 31, 2023, respectively; no shares issued and outstanding
at December 31, 2024, and 5,205,802 shares issued and 5,060,336
shares outstanding at December 31, 2023
—
0
Treasury Stock, 145,466 shares at December
31, 2024 and December 31, 2023, at cost
(3,602
)
(3,602
)
Additional Paid-In Capital
2,210,664
18,345
Accumulated Other Comprehensive Income
94
5
Accumulated deficit
(2,150,834
)
(1,396,917
)
Total Stockholders' equity
(deficit)
$
56,339
$
(1,382,163
)
Total Liabilities, Convertible
redeemable preferred stock, and Stockholders' equity
(deficit)
$
926,116
$
564,052
Tempus AI, Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands, except per
share amounts)
Year Ended December
31,
2024
2023
2022
Operating activities
Net loss
$
(705,809
)
$
(214,118
)
$
(289,811
)
Adjustments to reconcile net loss to net
cash used in operating activities
Change in fair value of warrant
liability
$
42,400
$
(8,000
)
$
4,700
Gain on warrant termination
(39,100
)
—
—
Reversal of warrant contract asset
amortization
(16,301
)
—
—
Gain on warrant exercise
(173
)
—
—
Stock-based compensation
534,138
—
—
Amortization of warrant contract asset
4,843
5,221
4,720
Change in fair value of warrant asset
(18,302
)
(4,100
)
—
Gain on marketable equity securities
(12,110
)
(9,807
)
—
Losses from equity method investments
4,228
301
595
Amortization of original issue
discount
1,382
1,117
238
Amortization of deferred financing
fees
510
510
139
Change in fair value of contingent
consideration
72
(400
)
(3,701
)
Depreciation and amortization
37,245
33,049
30,029
Provision for bad debt expense
680
1,646
3,867
Provision for obsolete inventory
—
—
1,938
Amortization of finance right-of-use lease
assets
—
283
381
Non-cash operating lease costs
6,047
6,760
6,427
Minimum accretion expense
197
90
455
Impairment of intangible assets
—
7,359
—
PIK interest added to principal
8,811
3,587
—
Change in assets and liabilities
Accounts receivable
(61,037
)
(7,347
)
(8,203
)
Inventory
(9,541
)
(6,563
)
(1,312
)
Prepaid expenses and other current
assets
(13,683
)
(6,474
)
(1,094
)
Investments and other assets
(751
)
(4,209
)
(2,296
)
Accounts payable
(23,852
)
(23,363
)
(7,915
)
Deferred revenue
(20,942
)
(26,412
)
67,626
Deferred other income
39,887
—
—
Accrued data licensing fees
(5,000
)
(9,121
)
(6,746
)
Accrued expenses & other
50,540
38,577
22,803
Interest payable
15,129
15,836
16,395
Operating lease liabilities
(8,553
)
(8,761
)
(7,439
)
Net cash used in operating
activities
$
(189,045
)
$
(214,339
)
$
(168,204
)
Investing activities
Purchases of property and equipment
$
(22,121
)
$
(34,608
)
$
(18,377
)
Proceeds from sale of marketable equity
securities
23,098
—
—
Purchases of marketable equity
securities
(36,183
)
—
—
Business combinations, net of cash
acquired (Note 3)
—
(5,705
)
(39,562
)
Investment in joint venture
(95,186
)
—
—
Net cash used in investing
activities
$
(130,392
)
$
(40,313
)
$
(57,939
)
Financing activities
Proceeds from issuance of common stock in
connection with initial public offering, net of underwriting
discounts and commissions
$
381,951
$
—
$
—
Tax withholding related to net share
settlement of restricted stock units
(69,918
)
—
—
Issuance of Series G-3 Preferred Stock,
net of offering costs
—
—
92,199
Issuance of Series G-4 Preferred Stock,
net of offering costs
—
44,885
—
Issuance of Series G-5 Preferred Stock
199,750
—
—
Principal payments on finance lease
liabilities
—
(288
)
(375
)
Purchase of treasury stock
—
(3,602
)
—
Payment of deferred offering costs
(8,766
)
(698
)
(2,883
)
Payment of deferred financing fees
—
—
(2,550
)
Dividends paid
(5,625
)
(5,625
)
(5,625
)
Proceeds from long-term debt, net of
original issue discount
—
82,875
170,625
Payment of indemnity holdback related to
acquisition
(813
)
—
—
G-4 Special Payment
(2,250
)
—
—
Net cash provided by financing
activities
$
494,329
$
117,547
$
251,391
Effect of foreign exchange rates on
cash
$
336
$
(19
)
$
17
Net increase (decrease) in Cash, Cash
Equivalents and Restricted Cash
$
175,228
$
(137,124
)
$
25,265
Cash, cash equivalents and restricted
cash, beginning of period
166,607
303,731
278,466
Cash, cash equivalents and restricted
cash, end of period
$
341,835
$
166,607
$
303,731
Cash, Cash Equivalents and Restricted
Cash are Comprised of:
Cash and cash equivalents
$
340,954
$
165,767
$
302,938
Restricted cash
881
840
793
Total cash, cash equivalents and
restricted cash
$
341,835
$
166,607
$
303,731
Supplemental disclosure of cash flow
information
Cash paid during the year for interest
$
28,045
$
16,913
$
4,664
Cash paid for income taxes
$
206
$
161
$
6
Marketable equity securities received on
accounts receivable
$
22,000
$
22,000
$
—
Supplemental disclosure of noncash
investing and financing activities
Dividends payable
$
5,487
$
12,535
$
5,625
Purchases of property and equipment,
accrued but not paid
$
4,292
$
6,137
$
2,408
Deferred offering costs, accrued but not
yet paid
$
—
$
3,504
$
2,391
Redemption of convertible promissory
note
$
24,932
$
27,970
$
17,142
Non-voting common stock issued in
connection with business combinations
$
344
$
9,209
$
4,947
Non-voting common stock issued in
connection with contingent consideration
$
—
$
—
$
4,304
Accretion of convertible preferred stock
to redemption value
$
—
$
4,338
$
301
Operating lease liabilities arising from
obtaining right-of-use assets
$
1,997
$
1,097
$
41,815
Finance lease liabilities arising from
obtaining right-of-use-assets
$
—
$
—
$
664
Conversion of redeemable convertible
preferred stock to common stock in connection with initial public
offering
$
1,348,809
$
—
$
—
Taxes related to net share settlement of
restricted stock units not yet paid
$
20
$
—
$
—
Reclassification of deferred offering
costs to additional paid-in capital upon initial public
offering
$
12,347
$
—
$
—
Issuance of Series G-3 Preferred Stock
$
3,809
$
2,738
$
—
Issuance of warrant
$
—
$
4,223
$
—
Issuance of Series G-4 Preferred Stock
$
611
$
—
$
—
Issuance of common stock in connection
with contingent consideration
$
847
$
—
$
—
Tempus AI, Inc.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands, except
percentages and per share amounts)
Genomics Gross Profit & Gross
Margin
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Genomics revenue
$
120,434
$
92,225
$
451,749
$
363,022
Cost of revenues, genomics
62,182
50,384
243,467
189,165
Gross profit, genomics
$
58,252
$
41,841
$
208,282
$
173,857
Stock-based compensation expense
1,215
—
13,625
—
Employer payroll tax related to
stock-based compensation
293
—
455
—
Non-GAAP gross profit, genomics
$
59,760
$
41,841
$
222,362
$
173,857
Genomics gross margin
48.4
%
45.4
%
46.1
%
47.9
%
Stock-based compensation expense
1.0
%
0.0
%
3.0
%
0.0
%
Employer payroll tax related to
stock-based compensation
0.2
%
0.0
%
0.1
%
0.0
%
Non-GAAP gross margin, genomics
49.6
%
45.4
%
49.2
%
47.9
%
Data and Services Gross Profit &
Gross Margin
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Data and services revenue
$
80,246
$
55,499
$
241,649
$
168,800
Cost of revenues, data and services
16,434
15,792
68,818
56,482
Gross profit, data and services
$
63,812
$
39,707
$
172,831
$
112,318
Stock-based compensation expense
385
—
8,530
—
Employer payroll tax related to
stock-based compensation
202
—
364
—
Non-GAAP gross profit, data and
services
$
64,399
$
39,707
$
181,725
$
112,318
Gross margin, data and services
79.5
%
71.5
%
71.5
%
66.5
%
Stock-based compensation expense
0.5
%
0.0
%
3.5
%
0.0
%
Employer payroll tax related to
stock-based compensation
0.3
%
0.0
%
0.2
%
0.0
%
Non-GAAP gross margin, data and
services
80.3
%
71.5
%
75.2
%
66.5
%
Total Gross Profit & Gross
Margin
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net revenue
$
200,680
$
147,724
$
693,398
$
531,822
Cost of revenues
78,616
66,176
312,285
245,647
Gross profit
$
122,064
$
81,548
$
381,113
$
286,175
Stock-based compensation expense
1,600
—
22,155
—
Employer payroll tax related to
stock-based compensation
495
—
819
—
Non-GAAP gross profit
$
124,159
$
81,548
$
404,087
$
286,175
Gross margin
60.8
%
55.2
%
55.0
%
53.8
%
Stock-based compensation expense
0.8
%
0.0
%
3.2
%
0.0
%
Employer payroll tax related to
stock-based compensation
0.2
%
0.0
%
0.1
%
0.0
%
Non-GAAP gross margin
61.9
%
55.2
%
58.3
%
53.8
%
Operating Expenses
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Technology research and development
$
31,864
$
24,670
$
167,519
$
95,155
Stock-based compensation expense
4,110
—
58,473
—
Employer payroll tax related to
stock-based compensation
1,306
—
2,747
—
Non-GAAP technology research and
development
$
26,448
$
24,670
$
106,299
$
95,155
Research and development
$
29,612
$
24,075
$
149,325
$
90,343
Stock-based compensation expense
2,851
—
47,638
—
Employer payroll tax related to
stock-based compensation
756
—
1,566
—
Non-GAAP research and development
$
26,005
$
24,075
$
100,121
$
90,343
Selling, general and administrative
$
111,288
$
85,098
$
755,351
$
296,760
Stock-based compensation expense
16,226
—
405,872
—
Employer payroll tax related to
stock-based compensation
5,023
—
8,411
—
Non-GAAP selling, general and
administrative
$
90,039
$
85,098
$
341,068
$
296,760
Operating expenses
$
172,764
$
133,843
$
1,072,195
$
482,258
Stock-based compensation expense
23,187
—
511,983
—
Employer payroll tax related to
stock-based compensation
7,085
—
12,724
—
Non-GAAP operating expenses
$
142,492
$
133,843
$
547,488
$
482,258
Earnings per Share
Three Months Ended December
31,
Year Ended December
31,
2024
2024
Net loss
$
(13,014
)
$
(705,809
)
Fair value changes(1)
(47,753
)
(27,868
)
Stock-based compensation expense
24,787
534,138
Employer payroll tax related to
stock-based compensation
7,580
13,543
G-4 Special Payment
—
2,250
Amortization of technology license
(3,988
)
(7,977
)
Acquisition related expenses(2)
2,708
2,708
Non-GAAP net loss
$
(29,680
)
$
(189,015
)
Non-GAAP net loss per share
$
(0.18
)
$
(1.58
)
Weighted average common shares
outstanding, basic and diluted
166,398
119,849
(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
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net loss
$
(13,014
)
$
(50,483
)
$
(705,809
)
$
(214,118
)
Interest income
(3,546
)
(1,737
)
(11,084
)
(7,601
)
Interest expense
13,359
13,624
53,653
46,869
Depreciation
6,884
5,621
26,356
21,279
Amortization
2,573
2,919
10,889
11,770
Provision for income taxes
122
214
266
288
EBITDA
$
6,378
$
(29,842
)
$
(625,729
)
$
(141,513
)
Losses on equity method investments
2,536
—
4,228
301
Fair value changes(1)
(47,753
)
(14,579
)
(27,868
)
(22,307
)
Stock-based compensation expense
24,787
—
534,138
—
Employer payroll tax related to
stock-based compensation
7,580
—
13,543
—
G-4 Special Payment
—
—
2,250
—
Amortization of technology license
(3,988
)
—
(7,977
)
—
Settlement costs(2)
—
8,625
—
8,625
Acquisition related expenses(3)
2,708
672
2,708
672
Adjusted EBITDA
$
(7,752
)
$
(35,124
)
$
(104,707
)
$
(154,222
)
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224203671/en/
Tempus Communications Erin Carron media@tempus.com Tempus
Investor Relations Elizabeth Krutoholow
Elizabeth.krutoholow@tempus.com
Tempus AI (NASDAQ:TEM)
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