Tempus AI (NASDAQ: TEM) saw a sharp decline in its stock price, dropping more than 14% in after-hours trading on Monday. The tumble came after the company released its latest earnings report, showing an adjusted loss of $0.18 per share for the quarter ending December 31, 2024. While this figure reflects a substantial improvement compared to the $1.58 loss per share reported in the same quarter last year, it fell short of Wall Street expectations. Five analysts surveyed by Zacks Investment Research had anticipated a loss of $0.15 per share, making the results a disappointment.
The artificial intelligence-powered precision medicine company still managed to deliver impressive revenue growth. Tempus reported $200.7 million in revenue for the fourth quarter, marking a 35.8% increase year-over-year. Breaking it down, the genomics business contributed $120.4 million, up 30.6% from the same period in 2023. Meanwhile, the data and services segment saw even stronger growth, climbing 44.6% to $80.2 million.
Eric Lefkofsky, Founder and CEO of Tempus, said,
“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.”
Looking ahead, Tempus AI (NASDAQ: TEM) issued an optimistic forecast for 2025. The company expects to generate approximately $1.24 billion in revenue for the full year, representing a hefty 79% jump from 2024 levels. The company also anticipates flipping its financials into positive territory with an adjusted EBITDA of $5 million in 2025. That’s an improvement of roughly $110 million compared to 2024.
Tempus closed out 2024 on a strong note, reporting $940 million in total remaining contract value and a net revenue retention rate of 140%. The company also completed a significant milestone earlier this month, finalizing its acquisition of Ambry Genetics on February 3, 2025.
